What you need to know before signing a contract :
1. Have you read the contract and understood all the clauses? If not, do not be in a rush and take the time to question anything you don't understand and think through the consequences of a failure to comply with each clause, either on your side or on the part of the other person signing. Is this what you would want and expect? Are the consequences provided for and agreed?
2. Are you relying on what someone else is telling you that convinces you to sign, or is what they are telling you written down and part of the agreement in writing ? It is important that you don't rely on verbal promises that induce you to sign.
3. If the contract contains a purchase price to pay, are you satisfied that this is the fair price or are you being convinced by someone that it is fair. Be prepared to do your own research of prices around you and be able to make up your own mind that what is being asked is the fair price.
Especially for a home purchase should you need to sell in the next few years, you don't want to make a loss because you bought at too high a price.
4. For a home purchase or sale, make sure you understand the implications of the buyer moving in earlier than the date of change of ownership and the payment of occupational rent and who will cover the cost of rates, levies and maintenance pending registration.
5. Make sure that everything you think is included in the purchase price is set out adequately in writing. For home purchases, things like satelite dishes and security systems often cause disputes later if removed by the seller or the electronics don't work.
6. Does the buyer have the funds to purchase readily available and if not do you understand all of the implications of raising finance and any deadlines set? What if another buyer comes along with a better deal before your first buyer has finance approval? Make sure you understand the implications of what is written down.
7. Don't be afraid to ask your attorney for an opinion on the legal contract before you sign, particularly where the contract is prepared by the other party's attorney or agent.
8. Don't be shy to ask that Mc Naught and Company represent you in the implementation of the contract. Next month marks our 40th birthday, and we are specialists in property contracts and conveyancing, all types of commercial leases and contracts and if things fall apart we handle litigation and court work too.
We're on 0870210123 or
maclaw.co.za with offices on the Bluff, Sandton and St Francis Bay.