Buying property is a major financial commitment. Before signing a sale agreement, buyers should carefully review every clause and understand the rights, obligations, costs, deadlines, and remedies contained in the contract. Protect Yourself Before You Sign.

COMMON CLAUSES TO WATCH OUT FOR

1. Hidden Fees & Surcharges

Watch for undisclosed administrative, processing, management, legal, maintenance, or other charges that can significantly increase the overall cost.

2. Unreasonable Deadlines & Penalties

Be cautious of strict completion or payment deadlines accompanied by disproportionate penalties for delays, particularly where delays may depend on matters outside the buyer's control.

3. Price Escalation Clauses

Check whether the seller can increase the agreed property price after the contract has been signed or after payments have been made, and under what circumstances.

4. Unfair Cancellation & Forfeiture Terms

Understand exactly what happens if the transaction is cancelled. Pay particular attention to clauses involving non-refundable deposits, large forfeiture amounts, or one-sided termination rights.

5. Restrictive Buyer Obligations

Some agreements may place extensive costs, repairs, taxes, or other responsibilities on the buyer while imposing comparatively limited obligations on the seller.

6. Limited Legal Protection

Review dispute-resolution, jurisdiction, liability, indemnity, and legal-recourse provisions carefully. Clauses that significantly restrict a buyer's ability to challenge a dispute deserve particular attention.

BEFORE SIGNING

✔ Read the entire agreement - not just the headline price.

✔ Ask for clarification of every unclear clause.

✔ Confirm all fees and charges in writing.

✔ Verify the seller's authority and the property's documentation.

✔ Make sure payment, completion, title-transfer, and refund conditions are clearly stated.

✔ Consider obtaining independent legal advice before signing.

✔ Keep copies of the agreement, receipts, correspondence, and supporting documents.

THE KEY PRINCIPLE

A property contract should clearly set out the rights and responsibilities of both parties. Buyers should understand what they are agreeing to before making substantial payments or committing themselves to a transaction.

Property contracts and applicable laws can vary. Seek advice from a qualified professional for your specific transaction.