Accepting an Offer and Signing a Sale and Purchase Agreement
Dotting the i's and crossing the t's before signing on the dotted line
Receiving an offer on your property is the beginning of a new chapter in the story of your property sale. The process of accepting an offer and signing a Sale and Purchase Agreement in New Zealand is pivotal - having a deep understanding of each step ensures a smooth transaction.
It is important to carefully evaluate the offer you’ve received. This isn't just about the price; consider the buyer's position, settlement dates and any conditions they've included, such as a building inspection or finance clause. It's essential to weigh up whether these terms align with your circumstances. The Sale and Purchase Agreement (S&P) is a legally binding contract outlining the terms of the sale. You'll want to familiarise yourself with standard clauses and any additional conditions added by the buyer. These might cover aspects like chattels to be included in the sale or specific works to be completed prior to settlement. Before you agree to anything, it is vital to get legal advice. A property lawyer will help you understand your obligations under the agreement and can advise on any potential risks. They'll ensure that your interests are protected in this significant legal commitment. After accepting an offer, there may still be negotiations. For example, if a building report uncovers issues, the buyer might renegotiate on price or request repairs. Being prepared for these discussions is important, and your lawyer will again play a key role here. This may also include the purchaser requesting extensions on condition deadlines, such as needing a 3 day extension on finance due to bank hold ups, etc. Always conduct a final thorough review before signing the S&P agreement. Ensure all agreed-upon conditions are clearly stated and any amendments made during negotiations are accurately reflected. Double-check settlement dates and other critical details to prevent any misunderstandings.
By methodically following these steps – from evaluating offers through to the final review before signing – you're setting yourself up for success. Remember that every property transaction is unique, so it's paramount to stay informed and seek expert advice tailored to your situation.
