Advertisement
If you have a new account but are having problems posting or verifying your account, please email us on hello@boards.ie for help. Thanks :)
Hello all! Please ensure that you are posting a new thread or question in the appropriate forum. The Feedback forum is overwhelmed with questions that are having to be moved elsewhere. If you need help to verify your account contact hello@boards.ie

Contract of Sale Issue

Options
  • 30-11-2017 8:50pm
    #1
    br2015
    Registered Users Posts: 71 ✭✭


    We are sale agreed on a property and the sellers solicitor won't allow our solicitor include the Law Society special condition regarding loan funds - the property is being 50% financed by a mortgage. Our solicitor has advised us this is unusual and concerning and we could be sued if - for any reason - the bank didn't commit to issuing funds. The seller is standing firm. Should we move on? My head is melted!


Comments

  • Options
    #2
    LirW
    Registered Users Posts: 4,825 ✭✭✭LirW


    I don't get the problem. So your solicitor is advising you that a 50% LTV mortgage is unusual and therefore you can't proceed with the sale?
    Have you got the loan offer from your bank? Was there Approval in principle?
    Sounds like a strange one.


  • Options
    #3
    br2015
    Registered Users Posts: 71 ✭✭br2015


    LirW wrote: »
    I don't get the problem. So your solicitor is advising you that a 50% LTV mortgage is unusual and therefore you can't proceed with the sale?
    Have you got the loan offer from your bank? Was there Approval in principle?
    Sounds like a strange one.

    No that's not it all. Our solicitor wants permission from the sellers solicitor to include a special conditional clause in the contract stating that for any reason we don't get our mortgage funds then the sale doesn't have to proceed. Its a very common clause apparently. We have approval in principal, loan offer should be through this week. LTV is irrelevant really.


  • Options
    #4
    Purple Sheep
    Registered Users Posts: 48 ✭Purple Sheep


    I didn't have the clause in my contract either, earlier this year. My solicitor wasn't confident about getting it added in because some buyers use this to drag things along I'm told, and in this market the vendor didn't have any incentive to include it. Apparently because the market is rising, the vendor couldn't really sue for much as there would be no major loss but I'd still forfeit the 10% deposit... A risk I wasn't willing to take so I waited to have loan offer + mortgage protection + home insurance lined up before signing the contract. Quite stressful as the vendor can pull out any time before it's all signed and mortgage protection took a while to sort out, but I'd rather have lost the house than my deposit!


  • Options
    #5
    br2015
    Registered Users Posts: 71 ✭✭br2015


    Purple Sheep wrote: »
    I didn't have the clause in my contract either, earlier this year. My solicitor wasn't confident about getting it added in because some buyers use this to drag things along I'm told, and in this market the vendor didn't have any incentive to include it. Apparently because the market is rising, the vendor couldn't really sue for much as there would be no major loss but I'd still forfeit the 10% deposit... A risk I wasn't willing to take so I waited to have loan offer + mortgage protection + home insurance lined up before signing the contract. Quite stressful as the vendor can pull out any time before it's all signed and mortgage protection took a while to sort out, but I'd rather have lost the house than my deposit!

    Thanks Purple Sheep for your reply, glad you got it all sorted in the end but sounds stressful all the same.

    The market isn't as strong where we are buying compared to where you bought I would say, the house was on the market a while and the vendors are in a chain so our solicitor feels they could sue us. She thinks it's extremely risky to continue and is going to try again to request the vendors solicitor to include it and EA is pushing it too as they don't want to lose the sale but I'm very stressed.


  • Options
    #6
    Purple Sheep
    Registered Users Posts: 48 ✭Purple Sheep


    br2015 wrote: »
    The market isn't as strong where we are buying compared to where you bought I would say, the house was on the market a while and the vendors are in a chain so our solicitor feels they could sue us. She thinks it's extremely risky to continue and is going to try again to request the vendors solicitor to include it and EA is pushing it too as they don't want to lose the sale but I'm very stressed.

    Ah, I wasn't in a chain and don't know how it'd have influenced what the solicitor said... It sounds like your solicitor has a bit of leverage to get the clause added (chain, house in the market for a while), I hope it works out for you. This whole process is so maddeningly stressful, from start to finish... wishing you all the best with it.


  • Advertisement
  • Options
    #7
    calgary bound
    Registered Users Posts: 149 ✭✭calgary bound


    Thanks Purple, glad it all worked out. The vendors solicitor won't allow the clause go in but solicitors have now agreed that we can sign contracts but they won't be exchanged and a legal contract won't come into effect until the day before we close. That way we have signed but we are protected should anything go wrong. Risky but not as risky as losing €25,000 I suppose!!!


Advertisement