One of the primary roles of your conveyancer is negotiating the terms of sale. Typically, these terms are outlined in the contract of sale. This article details some of the vital issues that require the expertise of a conveyancer when drafting the contract of sale.
1. Property Description
A property description is an important yet underrated aspect of the contract of sale. The seller must disclose what they are selling. For instance, what is the size of the plot? What is included in the sale? You might be shocked to find out that the actual plot is smaller than what you imagined. For instance, it could be that part of the driveway or lawn is in public land. Besides, you will know whether the appliances and installations you saw during the home visit are part of the sale.
2. The Selling Price
Your conveyancer is best suited to negotiate the selling price of the property. More often than not, negotiations hit a snag since neither party is willing to change their position. However, your conveyancer will use various tactics to compel the other party to soften their position.
3. The Payment Terms
How will you pay for the property? Unless you are buying the property through an auction, you should not pay for it in a single instalment. You should pay a deposit to show your commitment and the remaining cash at a later date(s). This approach allows the conveyancer to conduct due diligence and inspect the property. If you intend to buy through bank financing, you will have adequate time to secure a home loan.
The conveyancer will protect your deposit. For example, they will negotiate that you pay the least amount of deposit. Besides, the contract should contain a clause that compels the seller to refund the deposit if the property has significant issues that the seller had not revealed during the home visit. You should also receive your deposit if the bank declines your loan application.
Contingencies refer to the conditions that the parties should meet before the closing date. For example, they could ask the seller to clean and repaint the property, conduct minor repairs and pay all property debts. If you do not include these conditions, nothing compels the seller to perform these duties.
5. Closing Date
Most sellers do not pay a lot of attention to the closing date. However, it is a critical element when negotiating the contract. At the closing date, the property should change hands or revert to the seller if the buyer has not paid for the property. As such, the closing date should give you sufficient time to secure the required finances or sell your current home. Reach out to a conveyancing professional for more assistance.