Many buyers always seem to pay the initial deposit or reservation fee without even checking the main Purchase Agreement or even reading the Reservation Agreement. Ideally the initial reservation deposit should only be paid if the actual Reservation contract states “ refundable in the event of a fundamental legal technicality with the land title”or through the due diligence investigations. Every buyer should have the option to pull out of the deal within 14 days of signing (simply known as the “cooling period”) or in the event that there is a problem with the land title at the land office. Potential buyers should always seek the advice of an independent legal advisor before proceeding with any property purchase. Depending on the development, some lawyers are known to have experience with a particular project and in some cases they might be able to advise you based on past experiences. In an ideal situation a buyer should not sign any paperwork until the title deed has been checked, due diligence searches have been carried out (and are satisfactory) and the contract has been reviewed. Provided all the searches and investigations are favourable, only then should a buyer proceed to signing the main Purcgase Agreement and in most cases the Reservation Contract.
Never assume that all is well, it costs a fraction of the price to instruct a suitable independent lawyer, and it will give you peace of mind. Every buyer should use his/her common sense and not get carried away by the beautiful beaches and wonderful weather.
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