Draft Contract For Residential Property Purchase

When dealing with real estate property, two main parties involved are the buyer and seller of such property. Whether it is selling of a house or a commercial property, an agreement shall be signed to mutually benefit both the buyer and seller. In order to ensure a successful deal, buyer and seller must enlist terms and conditions properly for a hassle-free deal. The sale of a real estate property generally involves two transactions- preliminary agreement referred to as contract and delivery of deed in exchange for purchase price.

What is a draft contract?

In simple terms, a draft contract is a legal document dealing with the property transaction. This document includes the parties involved in the transaction, the date of completion, the amount of money involved.

When selling a property, one must deal with the issues in the draft contract as well as highlight any other concern before signing it. 

All contracts will be referred to as“draft” at the initial stages of the transaction. As they only specify the expected date for completion.

The seller’s advocate would draft a contract after they receive protocol form, Memorandum of Sale from the estate agent, and formal instruction to the advocate. After all these documents have been received and checked, the advocate of the seller would send the contract pack to the  advocate of the buyer. 

What should be checked in a draft contract?

When selling a property, the lawyer would prepare a draft contract on your behalf and would present it to you. This draft contract would be signed duly between the buyer and seller of the property. The first draft contract which is prepared by the advocate must have following details-

• The price of property; i.e. the amount one would pay for the property
• The deposit amount paid by the property buyer
• Description of house as well as the physical address of the property 
• Relevant details from the title deed of the property
• Everything which shall be included in the sale price of the house, for example the coach, carpets, and other items when one is buying a house.

Since buying property for most people is a lifetime decision, it is important that you take your time going through all documents like a draft contract.

When selling or buying a property, one must check that the details are up to date and should ask questions related to the property lawyer in case you have any doubts.

Contract drafting process 

An agreement between the seller and the property buyer shall be designed so as to protect  the interests of the parties in the court.

A draft contract would explain about the deal in question and what the parties agreed to do. It would also put the property seller within the bounds of law so that one can proceed with the exchange. It allows the parties to note down a negotiated deal between themselves. Thus, the contract would act as a business document as well as a reference point.

A contract will include property prices as well as the timeline to completion. In these contracts,  legal consequences and penalties can also be included, if a party fails to live up to the end of the contract.

An agreement must include business agreement between two parties and shall be recorded so it could be used as evidence in the court of law.

Conclusion

If you have decided to purchase a new real estate property such as buy a house , it is possible that you will sign a real estate contract. There are numerous contracts involved with the real estate and hence, it is advised to seek proper guidance and assistance from an experienced advocate, so that you won’t have to face any legal problem due to the contract signed by you.

Lead India offers you a team of experienced advocates who have been successfully dealing with issues involving real estate matters and could offer you with proper legal advice and assistance with numerous procedures for legal paperwork. Thus, if you wish to talk to a lawyer or seek free legal advice online, you may contact us.