Along with the standard terms of the contract both buyers and sellers are able to insert further terms and conditions of sale.
When writing in any special condition the key parts are who is going to do it; what are they going to do; when are they going to do it by; what standards will apply; what happens if it is not satisfied and who can waive it.
Once an inserted condition has been satisfied notice will be provided to the other party usually by the solicitors involved.
A condition can be either satisfied or waived. If you have inserted a condition but it has not been met by the required date you can choose to waive that condition. If the condition is neither satisfied nor waived then the agreement will be terminated and any deposit paid by you shall be immediately refunded.
Some common conditions of sale are:
- Conditional on sale of purchaser’s property.
- Conditional on sale of purchaser’s property becoming unconditional.
- Builders report, Lim (land information memorandum) report.
Inserting these clauses allows you to sell your property before purchasing. Use the appropriate clause to allow you time to sell your property or for an existing contract of sale to become unconditional in all respects.
Expiry of Prior Agreement / Back up Clause
Insert this clause in your contract when the property you are making an offer on is already under contract for sale subject to a conditional agreement. By securing a signed back up offer this means that if the first conditional contract on the property does not go ahead the seller cannot grant any extensions to the first buyer and your contract will take immediate effect.
If you have a back up offer on a property it is important that you take that into consideration when looking at other properties so that you don’t enter into two different contracts.
- Conditional upon Finance.
- Conditional upon obtaining Solicitor’s Approval of the Contract.
- Conditional upon obtaining a Builder’s Report.
Each of these conditions should be clearly worded and the dates for confirmation made clear.