Signing an Agreement for Sale and Purchase
Before signing any sale and purchase agreement for a newly built or uncompleted residential unit, ask the developer about the charges relating to the transaction such as legal fees, building plan fees, stamp duty, charges for certified copies of title of deeds, charges for the Deed of Mutual Covenant, management fee deposits, reserve funds, debris collection charges, etc.
Normally, prior to signing a formal agreement, prospective buyers of second-hand properties would first sign a provisional agreement for sale and purchase. They should read carefully every section of the provisional agreement and take note of the fees payable. Also, they should ask the estate agent to clearly explain the same to them. They should not sign the provisional agreement if some information needs to be added.
Before signing a provisional agreement for sale and purchase, ensure the estate agent provides the latest information on the title. If there is any doubt about the owner’s ability to repay the loan for the redemption of the property, make it a requirement that deposits are paid to solicitors.
The agreement for sale and purchase is a valid and legally binding contract and prospective buyers should seek legal advice before signing one. Generally speaking, both the vendor and purchaser have to engage their own legal representatives. It is recommended for the property seller and purchaser to instruct their own solicitors to protect their interests.