If you’ve found an “under construction” flat that you’ve fallen in love with and your next step is to sign the sales agreement, it might lead you to consider some things first. Knowing what to look for in the contract and elsewhere reduces the likelihood that you’ll be unhappy with your decision later on, so here are 13 aspects of the sales agreement to pay close attention.
1. The Overall Carpet Area
Checking the size of the flat and comparing it to other documents is smart because you’ll want to make sure the unit you wish to purchase is the right size for you. Regardless of what size people tell you it is, you’d do well to check that number against any brochures, sanctioned plans, and other booking documents you have to see if they all match up.
2. Details About the Flat Itself
More information you’d be better off knowing beforehand include the description of the flat, the number of the unit itself, and any other detailed information you can get your hands on. The more technical information you can obtain, the better you’ll feel about your purchase, so find out as much as you can about the flat itself.
3. Your Total Monthly Costs After Purchase
Once you purchase your flat, you’ll naturally have expenses, including utility and water bills, and any other monthly living expenses that are required to keep the flat. Don’t just look at the note for the flat itself; look at all of the other living expenses as well so you can get a clear picture of what it will cost you to live there.
4. Anything Related to Payment Terms
Making monthly payments will be a part of your life once you sign that sales document, so you need to be totally familiar with all parts of the contract that deal with money. Knowing your interest rate and any other costs attached to that monthly note is vital so that nothing important is overlooked and so there are no surprises later on.
5. Your Own Personal Details
All contracts have information about the buyer in them, and you’ll want to make sure the details pertaining to you as the buyer are correct and adequately noted in all of the documents. In essence, these are legal documents, so making sure they are all correct is crucial.
6. Information Regarding What You’ll Pay for Before You Move in
There are always going to be costs associated with the flat from the time you sign the document until the day you move in, so you need to double-check and make sure that you are familiar with the costs you are expected to pay. Again, you don’t want any surprises to occur that could spell trouble for you.
7. The Date of the Agreement
Sales agreements always have specific dates on them, and the date that the agreement is officially entered into may directly affect not only future documents, but also future decisions regarding taxes and much more. Make sure you know that date and what it means.
8. Your “Take Possession” Date
Much like the date on the sales agreement, you also need to understand what your “take possession” date is because until this day arrives, the flat may not officially belong to you.
9. Penalty Clause Related to Late Payments
When you’re late making a payment, which happens to most people occasionally, there is usually a financial penalty. Therefore, make sure you read the “fine print” to make yourself aware of what will happen if and when this does occur.
10. Penalty Clause Related to Late Possession of the Flat
Just like late payments, late possession may also cause you a problem. Keep in mind, however, that all of this must be spelled out clearly in the sales agreement, so you’ll be able to determine what, if anything, will happen if you take possession of the flat after the proposed date.
11. Registration Formalities
Keep in mind that, like other legal documents, a sales agreement has to be registered so that everything becomes “official,” and it has to be registered with the proper authorities. Unless this happens, the agreement in essence is non-existent.
12. Schedules Included in the Agreement
In every sales agreement, there will be specific due dates, or schedules, of the various payments, including how long it is going to take you to pay off the loan and how much interest you’ll be paying each year. This can help you if you ever decide to pay off the loan early.
13. Attached Plan and Documents
Most sales agreements come with one or more attached documents, and they can be just as important as the agreement itself. Again, make sure you’re familiar with all of these documents, so there are no unpleasant surprises throughout the loan.