A Sales and Purchase agreement is an agreement between a buyer and seller of real estate property. It’s one step up from a option to purchase: a OTP has offer, acceptance and consideration, where else a agreement has all the clause pre-agreed upon.
A Sales and Purchase Agreement stipulate what are the obligations of the developer and yourself.
For the S&P, the crucial things that your lawyer will go through with you are as follows:
- The progressive payments.
- The last 15% and how it will be apportioned and paid to whom(developer’s account).
- Repudiation– 14 days to pay for each payment. Developers will serve all homeowners a 21-days’ notice if they fail to make the payment on time.
- Errors and omission– Developer will be liable to compensate you if there are >3% in error as what was promised to you for your unit after it is built and ready by Temporary Occupancy Permit (TOP) date.
- Defects Liability Period– You have exactly one (1) year from the date of TOP Notice (The day the developer serves the TOP Notice letter to your law firm).
Do you agree?
This is the first page of the S&P: