Buying property is a big deal. It’s one of the largest investments you will ever make, so it’s important to follow all the procedures to the letter and ensure you comply with all rules and regulations. One aspect of the process is the depositing of the sales contract. If you’ve never purchased property before, the importance of this can easily be overlooked, but it’s definitely something you should know about, as depositing the contract quickly brings the buyer several benefits.
Why you should deposit your Sale Contract immediately when purchasing property
It is recommended that you sign the Sales Contract (SLC) and deposit it with the Department of Lands and Surveys (DLC) within 6 months of signing the contract. The sooner your forms are deposited the better, so here are some of the reasons why you should deposit your sales contract as soon as you’ve signed it…
No one else can deposit a SLC for the same property
Once an SLC has been deposited for a property, the DLC will not accept any further SLCs for that property. This gives you an extra level of security and peace of mind.
Filing your SLC late will cost you more
If you deposit your SLC with the DLC outside of the recommended 6-month window, you will be liable to pay an extra 10% on top of the transfer fees.
It gives you rights if the vendor doesn’t meet the obligations of the contract
With an SLC deposited with the DLC, if your vendor subsequently fails to perform their contractual obligations, you have the right to pursue a court order in order to register the property in your name or to seek compensation.
You can access valuable extra information
Once the SLC has been deposited with the DLC, you are then entitled to know the ratio of the value of a residential unit, as a proportion of the entire development. This in return, allows you to gain figures relating to any mortgage debt on the property and gives you the opportunity to pay that amount directly to the mortgage provider, without the vendor’s consent and the mortgage provider is obliged by law to accept the payment and release the property from the mortgage. You can then apply for a court order to have the property registered in your name, releasing you from any obligations to mortgages predating the signing of the SLC.
You have the option to transfer the rights to a third party
When the SLC has been deposited with the DLC, you then have the ability to legally assign or sell your rights to a third party, without the written consent of the vendor.
You can pass on your rights to a creditor
If you have taken out a loan for the purchase of the property, once the SLC is properly deposited, you then have the option of assigning the rights of the SLC over to your creditor.
Looking for more help buying your dream property?
Our experts are here to offer tailored advice and guidance. If you’d like help finding your next property, whether it’s your new home or your next big investment, then please do get in touch. You’ll find all our contact details available on our website. Our highly experienced team is ready and waiting to help you.