What are the usual documents involved in such transactions?
- Sale and purchase agreement
- Sale deed
- Due diligence report
- Assignment or renewal of a lease
What are the warranties given by a seller to a buyer?
Sellers are usually very reluctant to give representations and warranties. In the event they do, they are generally very limited in nature. Therefore, the obligation is on the buyer to undertake comprehensive due diligence.
When is the sale legally binding?
Parties are legally bound as soon as they execute the sale and purchase agreement, except where the contract is conditional upon, for example, financing.
When is title transferred?
Transfer of title takes place only upon registration by the buyer of the sale deed at the Survey and Land Registration Bureau.
What are the costs usually shouldered by the parties?
The buyer usually pays for the following:
- Buyer’s agent’s fees
- Legal costs
- Due diligence costs for consultants who have prepared building condition reports, valuation appraisals and real estate surveys
- Transfer fees
The seller usually pays for the following:
- Listing agent’s fees
- Legal costs