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Unconditional contract - what does in entail?

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  • 03-10-2011 10:58pm
    #1
    DrPhilG
    Registered Users Posts: 12,328 ✭✭✭✭


    Long story short... I'm in the process of buying a house and for various reasons (my fault) the process has taken longer than expected.

    The EA is now putting pressure on for us to sign "unconditional contracts" this week or he says the vendor will pull out as there are other parties interested.

    Aside from the fact that he is most likely BSing about the other parties and I should (and might) call his bluff and tell him to go ahead, what exactly is involved in the unconditional contract stage? I assumed that it means I can no longer withdraw without losing my deposit? However my bank manager reckons there is essentially no such thing and right up until you pay the full balance you can always pull out.

    I have no desire at all to pull out, the only reasons I would are if the solicitor or surveyor dug up something undesirable.

    I just want to get an understanding of what is involved in unconditional contracts before I respond.


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    #2
    Bigcheeze
    Closed Accounts Posts: 2,858 ✭✭✭Bigcheeze


    Signing the contract means you lose your deposit if you pull out. Plus if the owners lose more than the deposit on a subsequent sale they can pursue you for that loss. Obviously that scenario hasn't come up very often in the past but it's real nowadays. If you haven't had a surveyor report done, you shouldn't be signing a contract.


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    #3
    Milk & Honey
    Banned (with Prison Access) Posts: 1,950 ✭✭✭Milk & Honey


    Unconditional means the contract is not subject to conditions such as loan approval etc. In boom times it was common to sign unconditional contracts. Nowadays it is not so common.


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    #4
    DrPhilG
    Registered Users Posts: 12,328 ✭✭✭✭DrPhilG


    The delay has been caused by me being slow to get the finances together but they should be sorted this week. However even if they are sorted this week that doesn't give me much breathing space to get the survey done and have the solicitor do his thing.


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    #5
    Bigcheeze
    Closed Accounts Posts: 2,858 ✭✭✭Bigcheeze


    They're probably just worried that you're going to pull out because they see nothing happening.


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    #6
    Victor
    Registered Users Posts: 78,400 ✭✭✭✭Victor


    DrPhilG wrote: »
    The delay has been caused by me being slow to get the finances together but they should be sorted this week. However even if they are sorted this week that doesn't give me much breathing space to get the survey done and have the solicitor do his thing.
    Why are these things happening sequentially instead of concurrently?


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    #7
    nibtrix
    Registered Users Posts: 1,305 ✭✭✭nibtrix


    Victor wrote: »
    Why are these things happening sequentially instead of concurrently?

    Agreed. Organise the survey immediately, it'll let them know you are serious about going ahead. If you end up not completing the sale you won't have lost much.


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    #8
    DrPhilG
    Registered Users Posts: 12,328 ✭✭✭✭DrPhilG


    Victor wrote: »
    Why are these things happening sequentially instead of concurrently?

    Because I wasn't sure that the finances would come together. Didn't want to waste money on the survey and solicitor in case the money wasn't there. I have about 75% deposit and only need a tiny mortgage but that doesn't mean it's straightforward.


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    #9
    D3PO
    Registered Users Posts: 7,879 ✭✭✭D3PO


    DrPhilG wrote: »
    Because I wasn't sure that the finances would come together. Didn't want to waste money on the survey and solicitor in case the money wasn't there. I have about 75% deposit and only need a tiny mortgage but that doesn't mean it's straightforward.

    in fairness I can understnad the sellers frustrations then. seems striaghtforrward 25% mortgage but in fairness you should have sorted this first rather than potentially stringing along the seller.


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    #10
    DrPhilG
    Registered Users Posts: 12,328 ✭✭✭✭DrPhilG


    D3PO wrote: »
    in fairness I can understnad the sellers frustrations then. seems striaghtforrward 25% mortgage but in fairness you should have sorted this first rather than potentially stringing along the seller.

    Aye, no doubt about it, it's my own fault.

    I have approval in principle from the branch but it's going to head office in the morning for confirmation. Surveyer is contacting the EA directly to arrange the survey for the weekend.

    I've sent an email to the EA clarifying that these 2 things should be resolved by the weekend or very early next week and then I can sign.

    Fingers crossed. At the end of the day I'd imagine in the current market that putting the house back up for sale would be the last thing the vendors want either. Even if the previous bidder (who pulled out €5k below me) is still sniffing around, the first thing he's going to do is go back to his previous offer or even lower.

    The seller is a bank btw, so don't feel bad that I'm holding them up! It's not some poor soul selling their house that I'm causing stress to or I would feel more guilty.


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