Understanding Heads of Terms (HOTS)
- What It Is: HOTS outlines the main terms agreed by both parties. It’s not legally binding but sets the stage for the formal contract.
- Next Steps: Once both parties agree, legal work can begin. Either your agent or the buyer’s agent can draft it for approval.
- For Overseas Buyers: HOTS is crucial to clarify expectations and avoid misunderstandings.
- Key Points in a HOTS:
- Legal parties involved
- Description of the transaction
- Nature of the agreement
- Sale price, currency, and payment method
- Proposed timeline until completion
- International Transactions: Hire a professional translator to ensure both parties understand the terms, reducing disputes.
- Get Advice: Consult a solicitor specializing in investment property law to ensure the HOTS is clear and comprehensive.
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Disclaimer
The Content above is for guidance purpose only. While we make every effort to keep the information current and correct, we do not make representations of any kind. Professional advice should be sought, before entering into any legal contract and purchasing a property.