Practical tips about the top ten thematic topics that smart consumers should pay attention to during property transactions or appointing estate agents.
Signing a Provisional Agreement for Sale and Purchase
A Provisional Agreement for Sale and Purchase (“PASP”) is a legally binding document. The clauses in the agreement should be mutually discussed and agreed by both parties of transaction before the signing of the agreement. The buyer should not sign the PASP before a consensus is reached with the owner in respect of the transaction terms and conditions.
Any additional conditions such as the “must buy and must sell” clause and clauses relating to the sale of the property with unauthorised building works and related responsibilities should be clearly stated in the PASP. If either party wishes to change any terms in the PASP, the estate agent may only revise the PASP with the consent of the other party. Any revised terms and conditions should be endorsed and initialed by both parties.
Where possible, the estate agent should arrange the signing of the PASP by both parties at the same time, in order to avoid any sudden changes of mind or any changes of the property price from the originally agreed price.