When disputes arise between sellers and purchasers of immovable property regarding the terms and conditions contained in the Agreement of Sale, one (or both) of the parties often claim that they didn’t understand the legal implications and consequences of the contract that they signed. Quite often sellers and purchasers even admit that they did not even read through the contract before signing it. It is not advisable to sign any contract without reading it irrespective of who drew up the contract.
Even if the Agreement of Sale has been drafted by an attorney, the parties should read through the Agreement and ask the attorney to explain the legal implications of any clause that is not clear to them to ensure that they are satisfied with and understand the terms and conditions of the contract they are signing. In terms of the Property Practitioner’s Code of Conduct, practitioners (estate agents) are required to explain the meaning and consequences of the terms and conditions of the Agreement of Sale to both the seller and purchaser before the parties sign the Agreement of Sale.
The general principle applicable to written contracts is that the parties are deemed to know and understand what they have signed. If there is a dispute between the parties to a written contract and the matter goes to court, the court will, as a general rule, look only at the wording of the contract when making a ruling regarding the rights and obligations of the parties arising from the contract. As a general rule, no evidence outside written contracts will be allowed regarding the terms and conditions which were agreed upon between the parties when they entered into the contract. It is accordingly essential to include in the written Agreement everything that has been agreed upon between the parties.
Seller’s and purchaser’s often claim that there was some verbal agreement relating to the sale of the property which was not included in the contract. This practise leads to endless disputes and, furthermore, it is extremely unlikely that the parties alleging the verbal agreement will be able to prove it.
(Disclaimer: This article is for information purposes only and do not constitute legal or other professional advice)
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