What Do You Need to Know About a Contract of Sale When Buying a House?

30 July 2019
 Categories: Real Estate, Blog

If you've never bought a home before, then you may be excited at the proposition. You might have your eye on a property and feel that it could suit you down to the ground, but you now need to agree on terms with the seller and go through all of that paperwork. You may have no experience when it comes to the actual contract of sale, but this is a crucial legal document and will need to be front and centre of your real estate transaction. How should you proceed?

Initial Agreement

Before you can put anything to paper, you will need to agree on terms verbally with the seller, and this can take a certain amount of time, especially if there are any unusual things to bear in mind. Of course, much of the conversation will revolve around the price, but you may want to keep or disregard certain parts of the property and in particular, when it comes to existing furniture or fittings. If you would rather buy the house without any "white goods" for example, then you may be able to agree on a different price, but these are usually included in such a sale. The seller may not be too keen on this idea, as this can present them with extra work.

This is just one example, and there are many others that may come along in the real world. Just make sure that you make a clear note of your agreement, as some of this information will need to go into the contract of sale.

All in the Details

When you are ready to move forward, you need to get in touch with a qualified conveyancer who will help to draft the contract. Any proposed changes will need to be introduced either into the body of the agreement or as an addendum, and the names of all the parties (including the agents) should be included. If you require finance in order to purchase a property, then this detail should be included as well, together with the relevant identification.

Clock Is Ticking

As they say in legal terms, "time is of the essence," and you will certainly need to agree on specific dates. You may be allowed to take advantage of a cooling-off period, during which time you could change your mind, while you will also need to identify the settlement period. This is the amount of time between the date that the contract is signed and the date that you finally take ownership. The length of this period can vary, depending on whether any additional work needs to be completed, existing mortgages need to be settled or finances may need to be acquired.

Getting Support

As this is the first time that you have been down this road, you should always work with an experienced conveyancer. They will help to draft the paperwork correctly so that you do not run into any trouble. To learn more, contact your local property contract preparation service.