Originally posted by Winston001
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Plain English S&P agreements could cost users
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I'm sure they're fine, the lawyers just want everything to go through them. That's why they have the notices on the back of the agreement saying "Check with a lawyer first...". It's all about them creating fear in their clients so they can get work.
If an agreement was plain english enough to be easily understood by laymen then that's got to be a good thing doesn't it?
DavidSquadly dinky do!
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These are the main differences between the plain English and lawyer style S&P agreements:
The main differences include:
* Even if the agreement is conditional on a builder's report, buyers will need "reasonable" grounds to pull out.
* The building report must be from a "suitably qualified person".
* Problems with the title will no longer be an instant way to get out of a contract.
* Instead, buyers will have to go through a process of asking sellers to fix the problem before they can back out and can only dispute a title defect that will or might affect the buyer's use and benefit of the property.
* Promises (previously knownas warranties) given by vendorsin the new document are widerthan they are in the old ones.
Cheers,
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Originally posted by Davo36 View PostI'm sure they're fine, the lawyers just want everything to go through them. That's why they have the notices on the back of the agreement saying "Check with a lawyer first...". It's all about them creating fear in their clients so they can get work.
In fact its not uncommon for a new house buyer to refer to the agreement as an "option" not understanding that it is a binding contract.
If an agreement was plain english enough to be easily understood by laymen then that's got to be a good thing doesn't it?
David
The benefit to everyone of the standard AS&P is that it represents 25 years of development. There are a ton of legal cases deciding what the terms mean. A new form means starting over again.
Having said that, I think the standard agreement could do with revision to make it easier to read.
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I have heard that Barfoots are holding off on using these new ruthless sale and purchase agreements.Hamish Patel | ph: 09 625 4693 | mob: 021 625 693
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Originally posted by Winston001 View PostNot really. The buyer is going to need a lawyer anyway so there is no new work. However agents do not explain agreements, often because they don't understand them either. And buyers do not know what they are signing.
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Originally posted by Wayne View PostI thought agents had training in this sort of thing - I thought it would be really important for them to understand them?
Plus....how do I put this.....it requires a bit of intellectual horsepower to understand a legal contract. Some agents simply don't have it.
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In time the new Agreement will settle down and work. It just seems such a waste of time and energy to abandon the AS&P which has had 25 years of development. Everyone in the property industry has to start again. Agents, lawyers, bankers, valuers, property investors, the staff of all these people etc etc.
It would have been much more simple to change the existing agreement.
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Barrister slams new form
Sunday Aug 30, 2009
A new Real Estate Institute agreement for buying and selling property is being slammed by lawyers as unsound and unsafe to use.
The agreement will cause more litigation and much higher conveyancing costs, according to a legal opinion by barrister Rod Thomas to the Auckland District Law Society.
"It's like a car that needs a product recall because it's unsafe for the road," Thomas said.Patience is a virtue.
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