Sale and Purchase of Houses and what you should know about the documents

Sale and Purchase of Houses

When buying a property or a house, you will come across the Sales and Purchase Agreement or sometimes referred to as the SPA. Basically, if you are buying a new property, all the required documents will be flourished and provided by the developer while if you buy a used property, there are certain information that you will need.

Where this is concerned, you need to know if there is a separate title for the property beforehand. Once you have obtained that information, you should the make a photocopy of the title as well as the current quit rent receipt and the current assessment receipt.

Essentially, buying a house is a big affair and hence you would not want to overpay for a property or in a worst case scenario be cheated. Therefore you must ensure that you are liaising with the actually owner of the house. If the owner appoints an agent, then you must ensure that you are dealing with a legitimate one. This means that the agent has an agreement in writing of his appointment and you could always check with the owner.

When in doubt, always check with the owner and never leave any ambiguity or chance. If you come across a house which does not have any title, then try to obtain any documentation of the ownership. This can be determined through the SPA between the owner and the developer which was signed during the purchase of the property.

If you are buying the property from a second or third hand owner, then you must be able to obtain documents like the first SPA made by first owner with developer, the second SPA made between the first owner and the seller and in a third hand property, the third SPA between second owner and third owner seller.

This is very essential because it is the documented evident that the person you are buying the property from is the legitimate owner. In a situation where the owner still has outstanding amount owing to the bank, then you must obtain the bank statement of how much the outstanding would be. This is known as the redemption statement which will allow you to know how much you need to release to the seller and to the bank respectively.


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