You might be excited to receive your new property and finally close the deal on your dream property, but what would you do when your encounter a delayed purchase and sales agreement? Don’t panic. In this article, we will discuss what you should do when a seller decides to delay a purchase and sales agreement from a professional lawyer’s point of view.
A purchase and sales agreement generally takes about 3 months to complete. As a buyer, you must ensure that you have made the necessary payments by the appointed date. If there are any late payments, there will be a charge of 8% per annum.
Before going into what you can do in case of a delayed purchase and sales agreement, let’s find out the reasons for a delayed purchase and sales agreement.
Why Was The Purchase and Sales Agreement Delayed?
There could be a number of reasons as to why a purchase and sales agreement is postponed. Lost documents or missing documents could be one of them. This is why it is important to keep a copy of all the documents that you as a buyer has submitted to the officials and the seller. It may not be an original document, but a copy of the documents that you have submitted may help to track down the missing details.
Ensure that you are purchasing from a reliable seller. People make mistakes, but to minimize the risk of lost documents, remember to submit your documents in an organized manner and if possible, in a whole file. This would help the seller keep the documents properly and minimize the probability of the documents falling off and going missing.
Purchasing from a reliable seller would ensure that the seller is responsible for keeping all the necessary documents and preparations for the ownership transfer. There are important documents that should not be missed during this period, such as the title document. An ownership transfer could not be done if this document is missing.
How To Prevent Delayed Purchase And Sales Agreement
In order to prevent a delayed purchase and sales agreement, you should be aware of the conditions you need to inform the seller. There are a few ways to prevent a delay, one of the ways is to provide your seller with a grace period. Just like how the seller usually provides buyers with a grace period after the initial contract signing, the buyer should also impose this condition for the seller to ensure that the ownership transfer would be done in due time.
As a buyer, you have the right to impose certain regulations to prevent delays and ensure that the agreement is done in time. In the case where the seller fails to keep their promise and fulfill the contract requirements on time, the buyer should impose a contract cancellation to terminate the whole transaction. It is important to emphasize the terms and conditions for contract termination in the case where one party fails to meet the agreed terms. The conditions for contract termination should be discussed and put in the contract before signing any agreement.
Should the seller still fails to keep their promise, enforce contract termination and demand for a late fee as discussed on the signed agreement. This is why it is important to read through the terms and conditions before signing a purchase and sales agreement. The buyer must be able to negotiate with the contract agreements, to prevent a delayed purchase and sales agreement.
Hiring A Professional
If you are looking for the best way to handle a delayed purchase and sales agreement, hire a professional before you go on agreeing to any contract. A conveyancing lawyer would be able to aid you through the process and go through with the contract to ensure that the terms and conditions of the contract are fair for you, as a buyer.
A professional conveyancing lawyer would be able to give you legal advice on how to handle a delayed purchase and sales agreement. Hiring a professional would not only prevent a delayed purchase and sales agreement but also other possible legal issues. So, if you are in need of guidance or help from a lawyer, do not hesitate to contact Sim & Rahman.