As someone involved in the world of real estate, you may come across the term “seal” when reviewing or drafting an agreement of purchase and sale. You may wonder, what is a seal, and what happens if it is not used in an agreement?
Traditionally, a seal was a symbol or impression made on a document to indicate that it had been executed or authorized by an individual or entity. The use of a seal carried legal significance and could be used as evidence in court. However, in modern times, the use of seals has become less common, and their legal significance has diminished.
In the context of an agreement of purchase and sale, a seal can be used to indicate that the parties intend to give the document a certain legal effect. For example, it may be used to indicate that the parties intend for the agreement to be legally binding and enforceable.
However, the use of a seal is not required for an agreement of purchase and sale to be legally binding. In fact, many agreements today do not include a seal, and they are still legally valid. The key to a legally binding agreement is the intention of the parties to be bound by its terms.
To ensure that an agreement of purchase and sale is legally binding, it should include certain elements, such as an offer, acceptance, consideration, and a clear description of the property being purchased. It is also important that the parties sign the document in the presence of witnesses or a notary public, depending on local laws.
In conclusion, while the use of a seal in an agreement of purchase and sale may have been significant in the past, it is no longer required for a document to be legally binding. The key to a legally binding agreement is the intention of the parties to be bound by its terms, and this can be achieved without the use of a seal. As always, it is important to seek legal advice when drafting or reviewing any legal document.