Buy House? You Must Understand What Is S&P Agreement
Besides of signing Letter of Acceptance and Letter of Offer while you buying a property, there is still have another agreement you would need to sign also which is Sales and Purchase Agreement (generally known as “S&P Agreement” or “SPA”). So, what is S&P Agreement?
What is Sales And Purchase Agreement?
S&P Agreement is the major contract that governing both buyer and seller and lay out the details such as agreed purchase price between both parties, conditioning precedents to be fulfilled, mode of payment, the details of property itself, type of loan, mode of delivery of vacant property and other arrangement during buy-sell event. Thus, it is very important to understand every single details and rules and regulations in S&P Agreement before take up your pen and sign on it as you’ll need to take all the responsibilities once you have signed.
Besides, S&P Agreement plays a significant roles when the property buyer go over to view and check on the property. As every property buyer would expect that the showroom would be exactly the same with the property they purchased. However, a showroom is just a model room which is just giving the property buyer have a rough idea of what is the property look like and its structure and its selling point.
It’s no difference from the scale model of the entire development, which is not stipulated in the S&P Agreement and you may not be able to get the same at the end of the S&P Agreement transaction. Therefore, if the specifications such as height of ceiling, fixtures, parking lot, building material and etc. it is advisable to insert those details that you’re concern in S&P Agreement.
In conclusion, S&P Agreement is an agreement which is lay out the details and terms that mutually agreed by both buyer and seller. For the property purchase price, it is fixed once you have signed the Letter of Offer. Furthermore, the buyer and seller can still bargain with each other before signing any S&P Agreement. Once the S&P Agreement is signed, there is no any further bargain and both parties must follow and respect the S&P Agreement. So make sure the list items is correctly described in S&P Agreement and you are agree with that terms.