Understanding an agreement of sale

agrees to sell and the buyers agree to buy the said property under certain terms and conditions.

The agreement of sale of immovable property must be in writing, containing the description of the said property, details of the parties transacting, the price at which the said property is being sold for and it should be signed by all relevant parties that the agreement purports to bind.
Since an agreement is essentially a contract, it is only effective where parties who have legal capacity to sign contracts sign it.

A few examples of people without legal capacity are minors below the age of 18, an insane person, a person disqualified by the courts to sign contracts without the aid of a curator, an unrehabilitated insolvent or a person intoxicated or under the influence of drugs or medication.

It is important to realise that though the agreement of sale serves as the document that proves that a transaction has taken place and given that all conditions are adhered to and that transfer of ownership will certainly occur, it also serves as the only point of reference if a dispute arises between the parties on conditions of sale that were either expressly stated or implied. Its relevance can never be overstated.

In the euphoria of excitement or mixed feelings that occur towards the conclusion of a sale after finally agreeing on the purchase price, there is normally a tendency to want to rush the conclusion of the sale by nonchalantly signing the proposed agreement without stringently verifying it to see whether it fully articulates the intended position required by the parties.
Each party might end up contracting based on false assumptions which are not articulated in the contract leading to a forgettable downturn in emotions of what possibly should be the happiest transaction of a lifetime.

There is no precise structure or formula of what an agreement of sale should be especially when it comes to its terms and conditions.
It is best to always avoid “a one size fits all” approach to finding a contract that binds parties in one of life’s most expensive transactions.
I will try to explain some of the terms that should be included and specifically checked by the transacting parties.

In it a suspensive sale agreement where the party intends to purchase using agreed terms of payment, the date and exact amounts of payments must be clearly stated, where the payments are to be made and what happens if the paying party breaches the payment terms.
It is best for both parties if the contract is unequivocal on what the parties intend to transact.

Other terms of agreement which often cause contention where parties are not clear on what the agreement states is that of occupation.
This is normal in the sale of properties that have tenants residing in them. It is best especially for the buying party to clarify this issue before signing in order to avoid future disappointments.
It is imperative that the agreement clearly states when the risk and benefit passes from one party to the other.

This is regardless of whether the transaction is based on terms or a one-time payment.
At first glance it might seem immaterial until something happens in the process of transaction and the parties have to prove whether risk or benefit had passed.

Since every agreement is different, there are other terms which are critical but are agreement specific as commissions, who bears the burden of certain costs, condition of title, transfer processes and other specific special conditions that the parties might want included in the contract.
However, it is important to clearly articulate to the drafting agent lawyer what specific terms one will like included plus a request of a full explanation of agreement.