Protecting Yourself When Going To Contract On Property
It is always advisable to add a clause into a purchasing Contract that will allow you to get out of a Contract if necessary.
Few people would go to the bother of signing a Contract when they know that they intend to break it, but on the other hand few people are 100% certain that everything is perfect when they sign the Contract.
When purchasing property there are seemingly 101 things that need to be checked out. I will list quite a number of them so that you are aware of possible problems that you might want to cover in a contingency clause (Example: Settlement of this contract is conditional upon……………being …………within 10 days of signing of the contract by all parties).
· Favourable finance approval (not all finance offers may be acceptable to you so it is to your benefit to use the word ‘favourable’ or ‘acceptable’ in this clause)
· Building and pest inspection to the buyers satisfaction (you may accept a few small problems but that is at your discretion)
· Satisfactory final inspection
· Mould and lead paint inspection (if the house is an old one)
· Early buyer occupancy where the owner wants possession prior to settlement
· Satisfactory Disclosures depending on the type of property being sold or which state it is in
· Settlement conditional upon settlement of a property being sold by buyer
There are also other issues to consider so talk this all over with your solicitor before going to Contract. It is suggested that you talk with your solicitor and make sure you have an escape clause to get out of the Contract if you have to.
Filed Under: Property Investment Tips
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