Key Practice Areas
Monday, September 24, 2019
Agents, sellers and buyers should be aware of the importance of contracts containing correct details prior to the parties signing a contract.
There are a number of potential consequences (often costly) that may arise due to contract errors being brought to light post-signing.
Whilst it is important for all contract details to be correct, an issue that is occurring more frequently are errors in the buyers details.
Some examples of these errors are:
- incorrect spelling of a buyers individual name or entity name,
- omission of a name (for example a middle name),
- an incorrect entity being listed entirely or written incorrectly (this occurs commonly with trusts), and
- alias, nicknames or previous names (i.e. non legal names) being listed.
Potential issues that may arise due to an error in the buyers details include (but are not limited to):
- the need for contract rescissions, variations and/or statutory declarations,
- transfer duty implications,
- finance delays,
- settlement delays (which may incur default interest),
- default of the buyer under the contract (for example, if an extension of a due date is required to enable time to rectify the error and the extension is not granted),
- additional legal fees,
- additional financier fees, and
- dissatisfied sellers and buyers.
It is therefore always important to double check with all parties that the details contained within the contract are correct prior to signing and to accurately ID the parties involved to avoid any unexpected issues and delays arising throughout the transaction.