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Buying house property with cash but Sales and Purchase Agreement (SPA) refers to loan

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asked on Jan 23, 2016 at 12:41
by   Puzzled
edited on Apr 19, 2016 at 01:05
 
I realise that lawyers use cut and paste for their agreements for house Sales and Purchase Agreement (SPA). But this law firm is giving me a buyer Sales and Purchase (S&P) that has almost one whole page on loan by the purchaser when I want to buy with cash.

The seller probably wants to save money and is now also using them.

I want to know:

1) The seller has a government loan and the lawyer anticipates getting documents from them is extra long, they increased the length for completion from 3 to 5 months.
I said that is too long but the lawyer said I will have to pay penalty if I do not pay the balance within 3 months. Is there a logic to it? The seller cannot get documents to clear his/her debts, shouldn't she be penalised?

2) Where can I find a sample of a cash purchase Sales and Purchase Agreement?
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2 Answers

answered on Aug 12, 2016 at 17:17
by   Google
2) Where can I find a sample of a cash purchase Sales and Purchase Agreement?

Please google
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answered on Sep 3, 2016 at 00:30
by   Hakuna Matata
Firstly, the lawyer is simply anticipate situation where you suddenly can't buy the property by cash. Imagine if u suddenly run out of cash and want to purchase the property with loan, you have to pay extra fees & cost just to do supplemental agreement.

Secondly, I think you are right when the lawyer may have made a mistake to set the completion period to 5 months. There is always a clause in the agreement stating that if Vendor is delay in delivering documents after the stipulated time, the completion date shall be postpone to the number of days delayed.

Thirdly, never fully rely on documents you found in Google. Conveyancing may sound standard procedure but I'm sure that drafting is not. Cheers!
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