Four Common Types of Contract Traps for the Property Buyers

Aren't you one of those buyers who are savvy? Well, no surprise, since nowadays the customers as well as the consumers of various available services and products, respectively, do actually comprehend their purchases.

However, there are certain conditions that are kept in the dark. Let's explore those 'special conditions' or say the common types of contract traps for the property buyers in Australia-

#1 Vendors May Demand Penalty Interest Rate Increase

Check for the current proscribed penalty interest rate. The vendors should be satisfied with the prescribed rate of interest. However, some of them demand more than that. However, they do not have a valid justification for the same.

#2 Vendors May Predefine Reasonably Foreseeable Losses

Do not fall in the trap of 'reasonably foreseeable losses'. They should not exist in the contract in the first place. Can you find any reason to admit such things in advance? Even we couldn't. So, do not let the contractor make you sign on any of these kind of 'foreseeable losses’ that are not at all reasonable.

#3 Vendors will try to Bump up the Bank Cheques

Are you willing to pay a larger number of cheques than the ones prescribed by the General Conditions? Your fee might not be that a huge amount of money. However, the vendor might try to make you pay a larger number of cheques. This will increase your costs. Do not agree paying larger number of cheques, not more than three.

#4 Vendors Tend to Minimise Their Legal Costs

They don't prefer to pay the legal costs on their own. Well, this way they minimise their legal costs and make you pay the legal costs for receiving the nomination or even for any delay or rescheduling of the settlement. For a fact, you're not meant to pay these legal costs. The only case in which you're meant to pay is when you break the contract.

Do not let these 'Special Conditions' overwhelm you. Make a legal expert available to examine your contract, minutely. Make sure your best interests are not shadowed by the 'special conditions' kept in the dark.