Avoid unnecessary hassle during settlement by writing the correct property details on the Offer and Acceptance.
Property details, also known as title particulars, include the lot number, plan details, volume and folio number, and are necessary for correct identification of the property being transacted.
If these details are not included on the Offer and Acceptance, it could potentially lead to the transfer of the wrong property. For example, in a case study published on our blog, incorrect title particulars almost led to transfer of a block of land containing a family home, instead of the smaller vacant block that had been agreed upon. Fortunately, this scenario is unlikely as we usually identify missing or incorrect property details when we perform our initial title search.
What is more likely is that missing or incorrect details will cause unnecessary hassle for all parties involved. When a transaction is subject to finance, the buyer’s bank will receive a copy of the Offer and Acceptance. If the bank discover missing or incorrect property details, they may request a contract variation before they will approve finance.
As a result, the real estate agent involved will be required to draw up a variation and have it signed by both parties, creating an unnecessary hassle. If one party can’t sign the variation in time due to absence from the country or other reason, this hassle could turn into a costly settlement delay.
Such a delay can be easily avoided by conducting a title search before writing the contract, and ensuring the correct property details are included in the Offer and Acceptance. Watch out for common areas of confusion such as corner blocks that are on a different street than the letterbox suggests, and lot numbers that are different from the unit numbers.
Including the correct property details will help create a smooth, hassle-free settlement for all involved.
Image by Anton Raath via Flickr.