After having identified the home that you are eligible to purchase, the first step is the signing or execution (legal jargon) of an Agreement for Sale between the seller of the home (Vendor) and yourself.
The following are some key points that should be noted when entering into your sale agreement:
Terms and conditions of Payment – The general requirement is a 10% deposit to be paid upon signing or execution of the Agreement for Sale with the balance payable within 90 days of the date of the agreement.
A growing option in the real estate industry is that of pre-sold homes. The payment requirements in this instance is usually a 10% deposit upon signing the agreement, a further 10% upon installation of the roof, with the balance due within 90 days of completion of the property (with variations to this concept).
- You should request from your Vendor a copy of the title deed or deed of lease and have your attorney review this document prior to signing the sale agreement. This will ensure that there are no covenants or restrictions that may affect your ability to obtain clear title (ownership).
- When purchasing land, it is important that you confirm that the Town and Country Planning Division has approved the parcel for development of residential properties.
- Ensure that you are clear with regard to the clause regarding the forfeiture of your deposit in the event that the sale cannot be completed.
- Ensure that all parties to the sale sign the agreement, and that it is witnessed.
Acquiring your home may probably be the most significant lifetime investment that you make. It is therefore important that you are comfortable about your purchase. You should never allow yourself to be pressured into signing a sale agreement if you are unclear about anything.