Property & Conveyancing
What Property Buyers Should Verify Before Signing an Agreement for Sale
The questions a buyer should have answered before committing to a property transaction, and where those answers can be found.
An agreement for sale is a binding commitment. The verification that matters most happens before signature, not after.
Confirm the registered proprietor
Before any money changes hands, confirm that the person or entity offering to sell the property is the one actually registered as its owner. A search against the title reveals the registered proprietor and any registered interests, charges or restrictions affecting it.
Check for encumbrances
A title search should also reveal whether the property is subject to a charge, caveat, caution or other registered restriction. Any of these can affect whether a sale can proceed, and on what terms.
Verify the physical extent matches the documented extent
Discrepancies between what a buyer is shown on the ground and what is described in the title documents are a common source of dispute after completion. Confirming the boundaries and extent before signing avoids this.
The questions worth asking are the ones that are cheapest to ask before signing and most expensive to raise after.
Understand the payment structure in the agreement
The agreement for sale should set out clearly how and when the purchase price is to be paid, what happens to any deposit, and what recourse either party has if a payment obligation is not met.
Confirm the completion and registration process
Buyers should understand what steps follow signature: the documentation required for completion, and the process for registering the transfer once payment has been made.
This article is provided for general informational purposes and does not constitute legal advice. It does not describe the position under any specific piece of legislation or the outcome of any particular case. Readers with a specific matter should seek advice on their own circumstances.