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Seller wants us to sign Unconditional contracts on an ex-council house ?

  • 12-08-2014 4:31pm
    #1
    MarcusT89
    Registered Users, Registered Users 2 Posts: 18 ✭


    Hi, we are currently in the final stages of buying an ex-council house, loan offer signed and 8% deposit paid etc. Everything was going smoothly until the seller's solicitor said he wants us to sign unconditional contracts to protect the purchase of their property, as they need 100% proof our bank is going to draw down the cheque, so they can sign their contacts.
    This is all well and good as I understand they are worried their purchase will fall through, just like I'm worried our purchase is now under threat.
    The part that is confusing me is that the house still has a council tie as it is the first sale of the property and this process I gather takes about 4 weeks or so. How can I possibly sign unconditional contracts on a property that has a condition attached to it ie. Council Approval.
    And if I draw down my mortgage I could potentially be paying a mortgage for 4-6 weeks on a property I have not got the keys to.
    My solicitor says he has sent a letter to me which should arrive tomorrow explaining everything but, I am just very confused and impatient at the minute!


Comments

  • #2
    Mrs OBumble
    Registered Users, Registered Users 2 Posts: 26,289 ✭✭✭✭Mrs OBumble


    Patience grasshopper. 'Tis very unlikely that anyone here can tell you more than your solicitor can. Even if they try, they may get it wrong, or not know some relevant details.


  • #3
    MarcusT89
    Registered Users, Registered Users 2 Posts: 18 ✭MarcusT89


    Mrs OBumble wrote: »
    Patience grasshopper. 'Tis very unlikely that anyone here can tell you more than your solicitor can. Even if they try, they may get it wrong, or not know some relevant details.

    I completely agree. Was merely posting to see if anyone had or is in the same position as myself as it seems odd to me and impossible to proceed with.


  • #4
    Kelly06
    Closed Accounts Posts: 509 ✭✭✭Kelly06


    Op this is what is known as a section 90 burden on the folio.

    There are restrictions involved on the resale of a tenant purchase property , namely:

    1. The vendor (ex tenant) needs to show that there have somewhere else to live after the re sale and will not seek to go back on the housing list.
    2. The purchaser (you ) needs to show that they don't own other properties and are not buying as a buy to let.

    The consent of the council ahould be sought before the sale goes through, I think the council will even have to seal the deed of transfer between you and the vendor. The s90 burden will be removed by land reg then on registration and the consent will not be needed on any further re sale. Hope this helps!


  • #5
    MarcusT89
    Registered Users, Registered Users 2 Posts: 18 ✭MarcusT89


    Kelly06 wrote: »
    Op this is what is known as a section 90 burden on the folio.

    There are restrictions involved on the resale of a tenant purchase property , namely:

    1. The vendor (ex tenant) needs to show that there have somewhere else to live after the re sale and will not seek to go back on the housing list.
    2. The purchaser (you ) needs to show that they don't own other properties and are not buying as a buy to let.

    The consent of the council ahould be sought before the sale goes through, I think the council will even have to seal the deed of transfer between you and the vendor. The s90 burden will be removed by land reg then on registration and the consent will not be needed on any further re sale. Hope this helps!

    Hi thanks, so are you saying that the whole council approval stuff can be done before we sign any contracts. I thought it would be after which is why I was confused about signing unconditional contracts seen as there was clearly a council condition attached.


  • #6
    Kelly06
    Closed Accounts Posts: 509 ✭✭✭Kelly06


    MarcusT89 wrote: »
    Hi thanks, so are you saying that the whole council approval stuff can be done before we sign any contracts. I thought it would be after which is why I was confused about signing unconditional contracts seen as there was clearly a council condition attached.

    I'm not a solicitor and no one should ever take advice off the Internet in relation to the most important purchase they will make in their lifetime!

    I would think that consent is applied for post contract because if the consent is applied for and then the sale falls through then the whole consent process will have to be applied for again when new purchasers are found. Your paying your solicitor to represent you and you have chosen them so make them work for you! It's not a council condition the consent has been set down in statute. See here

    http://www.irishstatutebook.ie/1966/en/act/pub/0021/sec0090.html


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