Day: July 9, 2021

In buying and selling of properties, a contract is a must in the transaction wherein it contains all the details about the property. This includes all the complete names and contact details of the parties involved, the property’s details, pricing and financing details. And not to mention, deposit amounts, encumbrances, insurance details, conflict resolution procedures, inspection conditions, termination options, and closing and possession dates. Basically, it’s everything that a contract would need.

All about Contracts

A contract is a legal document that signifies that there is an agreement between the seller and buyer about real estate or other items in which both are legally bound under certain terms and conditions stipulated in the contract. There are numerous types of contracts, and the most common ones are bills of sale, intellectual property contracts, land contracts,  lease agreements,  loan agreements, and real estate contracts. Composing and possessing a contract is important for the following reasons:

• It serves as a record that there is a mutual understanding and commitment between the parties involved.
• It prevents future conflicts and mitigates the risk that is related to unmet terms and conditions.
• It aids and encourages both parties to comply with the negotiated terms and conditions until the transaction is completed to avoid unnecessary penalties, fines, or even termination of the contract.
• It smoothens the transferring of legal ownership from the seller to the buyer.

Importance of Contract Review

Property contract review is as important as having a contract because it protects both the purchaser and sellers from financial risk. Its ultimate purpose is to make the buyer knowledgeable about the contents of the contract before legally agreeing to its terms and conditions. This is made possible with the help of conveyancing licensed professionals who initially conduct an extensive search on a certain property if there is a presence of underlying issues.  It is then followed by the identification of one-sided clauses which could put particularly the buyers at disadvantage. The conveyancer will do all the legal paperwork so your legal rights as a purchaser will be protected and asserted when needed.

No Conveyancing: Risk and Potential Complications

The absence of a conveyancer in contract review will expose the buyer to the following possible risks:

• Delayed settlement can cause penalties or termination of contract when it is not immediately acted upon.
• Presence of defects on the property.
• Possible disagreements with the seller of property.
• Unintentional breach of contract.

Thus, not consulting a conveyancing expert will only cost more which includes a waste of money and time.

Benefits of Conveyancing Contract Review

Availing the service will ensure the buyer of the following:

• The contracts are thoroughly and legally drafted.
• Real-time property inspections.
• Smooth and proper transferring of legal ownership.
• A fast and fair settlement of legal issues.

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