Uncovering The 3 Common Mistakes In Property Contracts
Making a mistake when dealing with property contracts is not like forgetting to order a diet soda with your chips at lunch. Property contract mistakes have the potential to become some of the most expensive errors you will ever make.
In the worst-case scenarios, they could very well spell doom for your property investment portfolio and career. It is therefore important to learn the common mistakes people make when signing property contracts so that you are in a better position to avoid them.
Mistake no.1: Leaving blank spaces in the contract
I understand contracts can be boring. For the most part, they seem like they are written in an entirely different language. That, however, does not give you the green light to ignore the bits you do not understand. When you leave blank spaces in any contractual document, you will be essentially achieving several things:
- You will be telling everyone involved that you are sloppy and not very attentive or keen on details (they can use this to cheat you out of your hard earned cash)
- You could be voiding the contract. In the most extreme of cases, blank spaces may ensure that you do not have an enforceable legal document.
That second one spells big trouble because you could very well lose your investment since you will be unable to legally claim it.
Mistake no. 2: Failing to date the document
If you do not date your contract, you are opening yourself up to exploitation. Failing to date your contract essentially renders it open and, in most cases, unenforceable. For property contracts, solicitors use dates to determine when the deal will be closed and the property legally handed over. Without this, the seller might very well retain possession of the property.
Mistake no. 3: Not taking the time to fully understand the contract
Dating your contract and filling in all the necessary blank spaces will not matter if you do not read and understand the document before signing. Honestly, signing a document you do not understand is almost equivalent to selling your soul to the highest bidder; you just do not know what you are getting yourself into at all.
Understandably, most people make these mistakes because they are either in a hurry to land their big property deal and are too excited to pay attention, or they just do not have the right kind of assistance. Before you close any property deal, it is highly advisable, almost mandatory even, to involve a trustworthy solicitor who will look after your legal interests. It might cost you a bit more to hire one, but trust me, the potential long term savings are astronomical.
Take the time to find the right solicitor and take advantage of their legal knowledge to protect yourself from unscrupulous sellers who will look to hoodwink you into losing your property investment.