Property is being purchased and sold on a daily basis. Unfortunately many people do not understand the legal terminology used when a Contract is being drawn up on their behalf. In this article we are going to explain in plain English the legal terminology of what a Conditional Agreement is.
Conditional
When you enter into an Agreement for Sale and Purchase is will be made subject to certain conditions which need to be satisfied by either the Vendor or the Purchaser.
Examples of these conditions are
1.Subject to the Purchaser obtaining Finance on terms and conditions acceptable to the Purchaser. This may also include the amount of funds and the name of the Lender.
2.The sale of another property.
3.A Valuation Report.
4.A Builders Report.
5.Land Information Memorandum or
6.The Vendor obtaining a Code of Compliance for an illegal structure.
These are but to name a few.
The emphasis is that both parties will have a legal obligation to take all necessary steps to ensure their conditions can be met and confirmed making the Contract conditional upon the terms specified.
If for any reason either party were not in a position to satisfy any of the conditions there is generally a provision allowing either party to cancel the Agreement or negotiate on further terms.
Ensure you read the fine print in the Agreement as these also form part of your obligations. It is highly recommended you consult with a Conveyancing Practitioner prior to signing any Agreement to ensure your interests are protected. This is part of your own due diligence.
It always pays to be safe rather than sorry later.
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