The Importance of Getting the Name Right on a Property Contract
When completing a Contract for the sale of a property, it is most important to get the parties’ names right.
In this article we are referring to the details of the seller/vendor.
Before this section of the contract is completed it is prudent to undertake a title search of the property to ensure that not only the correct name is used, but that it is spelt correctly.
If the Contract is completed in the wrong name, then the Contract is unenforceable
This happens more times than you would care to think and creates all sorts of problems. Instances where this can occur is where the seller is mistaken as to the property being owned by a company or family trust or owned by one spouse only or jointly and mistakenly inserts a wrong entity.
Do not assume that you know the entity, double check . And don’t take the word of the vendor as to the entity in which the property is registered.
The other benefit of doing a title search when preparing the Contract is that it also may alert you, the seller, of any mistakes in the name that is registered on the title. There are many times when a transfer has been registered, but the name of the person has been spelled incorrectly. By doing a title search it gives you an opportunity to take steps to correct any mistake prior to settlement.
The other advantage of doing a title search is that it will ensure that all the correct details (real property description) are used when it comes to completing the Contract of Sale and it will also alert you if there has been any encumbrances (caveats, easements etc) registered over the property without your knowledge. Also, there may be old mortgages which may have been paid out long ago however have never been formally released from the title which may need to be attended to.
The procedure of obtaining a title search is simple but vitally important in ensuring that your sale runs smoothly and that there are no nasty last-minute surprises which could jeopardise the sale.
If you need to prepare a contract or require a contract review contact one of our property lawyers on 07 3808 7777 or email@example.com.