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When it comes to significant transactions such as buying or selling immovable property, it is imperative to prioritise obtaining legal guidance from a conveyancing attorney.
Once you have signed a purchase and sale agreement, it is legally binding and you may not be able to avoid your obligations, even if you did not fully understand them.
Consulting with an experienced conveyancing attorney before signing a purchase and sale agreement is an essential step which can protect your interests and ensure a smooth and fair process.
In this article, we delve into the reasons why seeking legal advice is crucial before finalising any sale agreement.
Sale agreements are often laden with intricate legal jargon that can be difficult to understand for those without a legal background. People are often too excited about acquiring their new home or securing the sale of their existing home and they tend to gloss over the fine print.
Conveyancing attorneys are well versed in legal terminology and can assist in explaining each and every term and condition. This understanding allows you to make informed decisions and ensures that you are aware of your rights, obligations and any potential risks.
Clauses like the typical “voetstoots” clause may require a detailed explanation in order for the parties to understand the extent of a seller’s obligation to disclose defects.
Simply understanding what your are agreeing to is a big step in the right direction. Never sign a sale agreement without knowing your rights and obligations.
Assuming that a standard-form contract will not have any negative consequences is a bad idea. Every sale agreement should be customised to suit the specific needs of the parties involved.
Your conveyancing attorney can review the agreement and make necessary amendments or additions to protect your interests. They can also negotiate terms, such as pricing, warranties, contingencies or payment structures, ensuring that your requirements are met and that any potential loopholes or ambiguities are addressed.
It may be that the seller and purchaser cannot reach agreement regarding certain aspects of the sale. During the negotiation process, a conveyancing attorney can be an invaluable ally. They have the skills to advocate for your interests, ensuring that the terms of the agreement are fair and favourable to you.
A conveyancing attorney is there to assist and advise you during a negotiation and will make recommendations regarding the risks of any compromise which may have to be made to conclude the deal.
Without proper legal guidance, you may unknowingly conclude an agreement which can prove costly in the long run. A poorly worded or incomplete sale agreement can lead to disputes, litigation and financial losses. Your conveyancing attorney can help you navigate the terms and conditions of the sale agreement, identify potential issues and ensure that all necessary terms are included in the contract to minimise the risk of future conflicts.
A conveyancing attorney can also provide you with a cost estimate of the conveyancing fees and disbursements so that you are prepared financially for complying with your obligations. This may avoid the panic when you are presented with accounts after having concluded the sale agreement and without properly understanding the extent of the costs involved.
The costs of paying for advice before signing a contract can easily save you money and many headaches in the future. Never sign a sale agreement until you have invested time and finances into protecting your interests.
Many sale agreements contain suspensive conditions which provide for the sale agreement lapsing in the event of the conditions not being fulfilled on time. Typical examples of suspensive conditions relate to the financing of the purchase price of the property such as mortgage bond approval conditions or prior sale of the purchaser’s property conditions.
Both parties need to understand the implications of suspensive conditions and the consequences of them being fulfilled or not.
Some standard-form purchase and sale agreements provide for an automatic extension of time limits for suspensive conditions – which parties are hardly ever aware of. These would delay the conclusion of the agreement. It is critical that both parties understand exactly when the sale must be concluded by so that they can plan accordingly.
If the sale of property is to be concluded without the assistance of a property practitioner (an estate agent), then it is critical that the parties seek the assistance of a conveyancing attorney to assist in the drafting of the sale agreement. Any attempt by laymen to prepare their own agreement or to find an agreement online would be incredibly risky and ill-advised.
Do not rush into a transaction.
Never sign a sale agreement until you have obtained expert legal advice from a conveyancing attorney.
Contact us if you have any questions or need any specific advice.
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