Everything you need to know before signing a contract
Updated: Jun 25, 2020
Don’t be pressured into signing anything if you are unsure. Contracts can be complex. It is important that you fully understand the terms of a contract before signing anything. So it is important that you read the following guidelines and follow them before you put the pen to the paper.
Read The Contract VERY Carefully
Remember, contracts are designed to protect both parties. Just make sure you fully understand all details before signing on the dotted line. Make sure you read the terms & conditions before getting into any agreement.
Seek Help of a Legal Expert
Whether you are buying or selling a commercial real estate, it is helpful to know some things about the law. However, the best arrangement will be to have a professional to help you every step of the way. There might be some details that you might have overlooked, or there are some sales that can be avoided or other complications that can be avoided. Dealing with contracts can be confusing. If you’ve got questions or concerns about how the law applies to your situation or problem – this service can help you with one-to-one friendly advice and guidance.
Always Check for Restrictions
This is why we advise that you investigate all restrictions before buying. You may not want the hassle of begging enforcing groups or judges to allow you to build a work shed or park your boat in the driveway. If there are such clauses, and you don’t want them, bring the issue for discussion before signing the agreement.
Understand Your Rights As Well As Your Duties
Learn how contract works. Know what to look for and what your duties as the buyer are. Be mindful of deadlines. Ask questions about anything you don’t get. Makes sure that there is a proper balance between them. The ideal contract should benefit both parties.
Get All the Agreements into Writing
Standard form contracts are generally written to benefit the interests of the person offering the contract. It is possible to negotiate the terms of a standard form contract. However in some cases your only option may be to ‘take it or leave it’. You should read the entire contract, including the fine print, before signing.
Be Wary of White Spaces
Never leave blank spaces on a signed contract – cross them out if you have nothing to add so they cannot be altered later.
Keep a Copy with Yourself
Ask for a copy of the contract and make sure that you keep it for your records.
Know the Length of your Contract
Always check the extent of the contract's validity. This information should be stated clearly in the contract.
Consequences of Violation of Contract
Once you’ve signed a contract you may not be able to get out of it without compensating the other party for their genuine loss and expenses. Some contracts may allow you to terminate early, with or without having to pay compensation to the other party. Make sure that the contract explains what would be the consequence if the contract is violated by either party.
This was a basic checklist you should follow before you go ahead with an agreement. If have applied common sense and have done ‘due diligence’ you can enjoy a hassle free experience fulfilling your contract.