The Significance of Understanding The Contents Of The Offer To Purchase (OTP).

Herewith important clauses to look out for when signing an offer to purchase for a property sale. Its important to read through the document carefully prior signing. Though the length and convoluted language of a property sale offer can be intimidating, reviewing the clauses is important before making any commitments.

First, when signing an Offer To Purchase for a property sale, make sure you review the condition of clause. The condition clause typically outlines the terms and conditions that must be met prior to the purchase of the property. These are usually financial and relate to the obtaining of an appraisal and financing.

Also, its important to note how any deposits are to be held in trust. The trust agreement should outline who is holding the deposits, as well as the procedure for their return in case of default of either party involved in the transaction.

Another clause you should review carefully is the notice clause. This clause should set out how notices should be sent, served, and received. Additionally, the notice clause should list an official address for each party involved in the property sale.

In addition, review the title insurance clause. This clause will set out how title insurance can be obtained and what steps you must take if any defects in title arise. This clause should also state who will be responsible for paying for title insurance and any associated attorney fees.

Finally, make sure you read the purchase agreement carefully and that all parties sign it in order to make it legally binding.

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