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When is a property sales agreement valid?
Purchasing a property is a significant financial investment and there are a number of processes to complete before the sale can go through; from getting pre-approval for a home loan to submitting an offer to the seller, to finally signing the sales agreement.
"A valid sales agreement is binding once signed and can be used to protect either the buyer's or the seller's rights should either party be in breach in the future", explains Bruce Swain, CEO of Leapfrog Property Group.
Prior to drafting the sales agreement a buyer needs to present the seller with an offer to purchase. Once the seller has accepted and signed the offer to purchase the sales agreement can be finalised and signed by both parties.
"A qualified estate agent will be able to guide both parties through the sales process and the intricacies of a sales agreement. Every agreement is unique and it's important for both the buyer and seller to clarify any conditions, expectations and penalties up front", advises Swain.
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