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5 Crucial Clauses You Must Include in The Home Buying Process

5 Crucial Clauses You Must Include in The Home Buying Process

Having a home is not just an asset nowadays but a necessity too and essentials of life. With changing times and an increasingly busy lifestyle, people think it is easier to rent a place than go looking for a permanent tone. It is a convenient solution in the long run.

Looking for a house can be cumbersome and complicated since it takes up a lot of time. One must read the terms and conditions of all the documents before investing. One of those documents in the home-buying document is the property purchase agreement.

A home buying agreement or the home purchase agreement is the legally binding contract between buyer and seller outlining the terms and conditions that protect the interest of both parties. It also includes a purchase price that was fixed and is an excellent resource in helping the sale to proceed smoothly. These are a few things a home buyer should include in the agreement.

The Indemnity clause: this is an importamt clkause which the seller and the buyer as a safety measure to prevent potential losses or any damage. Sometimes legal issues are unavoidable as a lot of people are involved. The seller and the buyer carefully draft this clause and any scenario that can cause potential damage.

The Penalty clause: another crucial clause that is binding on the buyer and the seller. Property purchase is a question of land and money from the two parties, its fair penalty fair applies to whoever backs out of the deal for whatsoever reason.

Right to call off agreement: this is a provision for home b buyers. As a buyer, you need to preserve the right to eithdraw from an y deal under any curcumstances wiuthout being financially penalized. Situations like:

  • Bank loan not approved
  • Seller fails toprovide legal or statutory documents for the property
  • Seller fails to provide all legal documents at the time of execution of the sale deed
  • The buyer finds the property default before the execution of the sale deed.

Outstanding dues: if the person previously owning the property might have taken the loan and chances are he has not learned it. It is important to ensure that throughout the purchase document the seller clears off all loutstanding dues before the date of registration.

Special clause: a unique clause that every home buyer must include in the purchase agreement. Certain special conditions and what buyer and seller would do in these situations are specified here. Eg: sitting the deposit money in not sue until a few days after completion of the standard provisions such as pest check and the building approval.

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