Get a deposit and provide contract
After negotiating and agreeing on the deal with the buyer, the legal obligations start.
In order to avoid any nasty surprises, to be legally covered and to make sure you are doing what is best for you; it is very important to have a professional solicitor, or lawyer to help you with the contract. Each sale can be different and you will have the best and customized advice if you use legal adviser.
We are not lawyers so please be careful with all the information available on the web.
Find below some general guidance.
The seller has to provide different legal documents:
- Section 32
- Contract of sale
The seller also has to get a deposit from the buyer
What is section 32?
Section 32 is a contract provided by the seller before the contract is signed. The legal representative of the seller prepares this contract. It is a legal document and if the seller misleads the buyer, they can be legally responsible.
TIPS: Find professional lawyer and solicitor in our partners list.
What is a Contract of sale?
The contract of sale is provided by the seller and includes all the information about the property, the seller, prices….
TIPS: Again a legal adviser is the best help to provide you with this contract
How much should the deposit be?
There is no rule about the deposit amount, but usually 10% of the sale price is reasonable.
When is the property considered as sold?
When you sign the contract of sale, you have to honoured the offer. The property is therefore considered sold.
At settlement, the sale is completed when all inspections have been made, the legal documents (title and transfer documents) are exchanged and the price balance is paid by the buyer.
Note: the buyer has a 3 business weeks retracting period beginning from the date he signs the contract.
After signing the contract, let’s wait until the settlement period is over, the next and last step is ‘the settlement’: