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Can i sign contract to buy house before selling existing home?

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  • 09-05-2016 8:54pm
    #1
    Starman07
    Registered Users Posts: 72 ✭✭


    Hi,

    I have put a deposit on a new (NAMA) development, for a house that will be ready by Aug/September. Developer's estate agent have advised that sale contracts will be sent out soon, and i have 21 days to sign.

    I also need to sell my exising house, and condition of mortgage approval is that contract for sale is signed for existing house before mortgage can be draw down.This would be in Aug/Sep. Fair enough, and house will definitely be sold within next 2 months.

    Now i'm told by developer's estate agent that the contract for sale of existing home must be signed before i can sign contract for the new house. Is this definitely the case? Is there any way around this, based on the fact, we definitely will have house sold in time, just not within next 21 days? Dont want to lose this new house...

    Thanks


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    #2
    godtabh
    Moderators, Science, Health & Environment Moderators Posts: 23,218 Mod ✭✭✭✭godtabh


    You cant guarantee it would be sold in 2 months


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    #3
    bleary
    Registered Users Posts: 495 ✭✭bleary


    They can choose who they want to sell the house to and if they have enough demand then why would they sell it to someone who may or may not complete, put your house up for sale then either rent or delay closing until the new house is ready. It will most likely take 3 months for a sale to close and go through or wait for the next phase in the autumn


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    #4
    Starman07
    Registered Users Posts: 72 ✭✭Starman07


    True, can't guarantee it will be sold within 2 months, but am confident it will be.

    And yes, they can sell it to whoever they want,especially since demand is so high, so i guess my question is, it's possible that there is an explicit condition in the contract that any sale of existing home must have signed sale contract? and they will they require a copy of a said contract?

    I guess is there any way to get around it, in order to give myself more time? Would sale agreed (bid accepted and deposit paid) count at all?

    Obviously will speak to my solicitor about this too. Appreciate the feedback


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    #5
    Penalty
    Registered Users Posts: 84 ✭✭Penalty


    Starman07 wrote: »
    True, can't guarantee it will be sold within 2 months, but am confident it will be.

    And yes, they can sell it to whoever they want,especially since demand is so high, so i guess my question is, it's possible that there is an explicit condition in the contract that any sale of existing home must have signed sale contract? and they will they require a copy of a said contract?

    I guess is there any way to get around it, in order to give myself more time? Would sale agreed (bid accepted and deposit paid) count at all?

    Obviously will speak to my solicitor about this too. Appreciate the feedback

    What they want to see is your ability to complete the purchase if your sale collapses.

    In most cases this means selling before buying or having an agreement with your vendor on what is happening. They want to ensure the sale goes through hence can pick the people who have a better chance of completing.

    Read various threads about the house purchase chain - you may think you will sale but often there are unforeseen circumstances - your developer does not want to be exposed to that.

    You also need to understand the risk.

    Even if you signed the contract - and your house didn't sell or get your price etc could you complete? Because if not there is a risk that you forfeit your deposit if the purchase is not completed in time. It's not likely but if the property is in demand and you can't complete they could make a quick sale to someone

    When I was buying my solicitor made me delay signing the purchase until he had the signed sale contract to protect us.


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