Institute stresses importance of agreement checks

Press, 2 December 1987, Page 59

Institute stresses importance of agreement checks

As the agreement you sign when selling, buying, leasing or letting is binding on both parties to it, it is wise to know exactly what are the terms of the contract. If either party is uncertain of any clause in the agreement, as it is finally framed, then questions should be asked and explanations sought before signatures are appended. The contract must conform exactly to the wishes of the parties. The problem is that if any of the clauses and conditions are not understood, or misunderstood for that matter, then doubts can arise which lead to the frequent

questions referred to the Real Estate Institute. Both the rights and obligations of parties to a property contract are straightforward, once understanding is reached. Many of the questions coming to the institute revolve around home units, a form of ownership which gained great popularity in the last 15 or so years. For some the advantages of owning a home unit are manifold but, with the purchase of any type of real estate there can be a wide variance in the details, especially with units for which there are several forms of ownership. The institute receives frequent

inquiries from owners of home units such as, the neighbour of one, in a block of three, erected a trellis between his unit and the next. While not blocking access, the structure interfered with sunlight and view. In another inquiry, the owner of a unit in a block of four which had been erected for five years, asked about the obligations of the four owners for painting and maintenance of the exterior of the block and about the apportionment of cost In the main, in both cases the answers depend on the terms of the agreements and lease documents signed at the time of purchase, and each owner was

advised to consult his solicitor - for a thorough examination of the documents and an explanation of any duties and obligations within the sphere of the ownership group. Real estate agents dealing with unit sales generally give detailed explanations of these matters to purchasers at the time the contract is signed but this does not prevent later confusion. This is why it is most important that you understand exactly what you are signing in every property transaction, whether vendor or purchaser ... before you sign!