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Mortgage Contract - Unconditional

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  • 06-01-2015 10:23am
    #1
    Dr.Winston O'Boogie
    Registered Users Posts: 1,810 ✭✭✭


    Hello all,

    I am in the process of purchasing a house. The contract currently is conditional however the vendor is requesting it become unconditional before they sign. My understanding of this is that if our bank withdraws their loan offer (very unlikely as we have received the formal loan offer and the bank has stated they have received everything they need on their side) the vendor gets to keep our deposit.

    Even though there is very low risk, I am wary of changing the contract to unconditional as the thought of losing our deposit which we have saved so long and hard would be devastating. Is this a normal request does anyone know? It seems the house sale won’t go through without it.


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    #2
    Clive
    Registered Users Posts: 1,799 ✭✭✭Clive


    Dr.Winston O'Boogie wrote: »
    Hello all,

    I am in the process of purchasing a house. The contract currently is conditional however the vendor is requesting it become unconditional before they sign. My understanding of this is that if our bank withdraws their loan offer (very unlikely as we have received the formal loan offer and the bank has stated they have received everything they need on their side) the vendor gets to keep our deposit.

    Even though there is very low risk, I am wary of changing the contract to unconditional as the thought of losing our deposit which we have saved so long and hard would be devastating. Is this a normal request does anyone know? It seems the house sale won’t go through without it.

    No solicitor will allow you to sign a contract without it being at least subject to mortgage drawdown. Other conditions (subject to survey etc) can be removed if you are willing.


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    #3
    banie01
    Registered Users Posts: 16,548 ✭✭✭✭banie01


    I'd be very wary as to why the vendor is looking for this change.
    Have you had a survey?
    Could there be an underlying problem with the property that the vendor has become aware of and is now trying to alter contracts to allow him invoke a degree of Caveat Emptor if and when you discover this issue?
    Could there be an issue with planning, retention,access or anything similar that the vendor has become aware of during the conveyance?
    Aside from that, conditions such as successful drawdown and subject to survey allow you a degree of protection against specific performance and loss of deposit that deleting those conditions that deleting them will eliminate.


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    #4
    Dr.Winston O'Boogie
    Registered Users Posts: 1,810 ✭✭✭Dr.Winston O'Boogie


    Hello all,

    There is nothing wrong with the property, it has been valued and surveyed and everything is in order. My understanding is the seller wants the contract to be unconditional as they are purchasing a house and the person selling to them has insisted that the contract for their purchase also be unconditional.

    We had previously signed a conditional contract, but the vendors solicitor is now insisting that a section that states if our bank pulls our loan offer we get our deposit back is removed. So therefore they will keep the deposit if the loan offer is withdrawn. Highly unlikely at this stage as we have provided everything needed to bank, and the sale is due to close in January but it does still make me wary.


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    #5
    surpy
    Closed Accounts Posts: 383 ✭✭surpy


    Possibility that the other side are facing a delay in moving into their new home?
    Looking to lock you in for a few months while they complete?


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    #6
    Dr.Winston O'Boogie
    Registered Users Posts: 1,810 ✭✭✭Dr.Winston O'Boogie


    surpy wrote: »
    Possibility that the other side are facing a delay in moving into their new home?
    Looking to lock you in for a few months while they complete?

    As far as I am aware this isn't the case, a closing date of mid this month has been provisonally agreed so once the unconditional contract is agreed they will be signing confirming this and they will need to move out on this date.

    It seems that they won't sign until it becomes unconditional, and we will need to agree to this to agree a move in date. I think they are taking the stance that we could pull out and they wouldn't have the deposit to purchase their new property. It may just be a fail safe on their part but we definitely won't be pulling out of the deal.


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    #7
    Clive
    Registered Users Posts: 1,799 ✭✭✭Clive


    Dr.Winston O'Boogie wrote: »
    As far as I am aware this isn't the case, a closing date of mid this month has been provisonally agreed so once the unconditional contract is agreed they will be signing confirming this and they will need to move out on this date.

    It seems that they won't sign until it becomes unconditional, and we will need to agree to this to agree a move in date. I think they are taking the stance that we could pull out and they wouldn't have the deposit to purchase their new property. It may just be a fail safe on their part but we definitely won't be pulling out of the deal.

    Get your solicitor to check , but as far as I know the Law Society have issued guidance that mortgage conditions should not be removed.


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    #8
    the_syco
    Registered Users Posts: 37,295 ✭✭✭✭the_syco


    Dr.Winston O'Boogie wrote: »
    There is nothing wrong with the property, it has been valued and surveyed and everything is in order. My understanding is the seller wants the contract to be unconditional as they are purchasing a house and the person selling to them has insisted that the contract for their purchase also be unconditional.
    Seems that the other house may have the problem, but your vendors have been persuaded that that the "unconditional" is the norm. I'd ponder if the chain may end up screwing you, so I'd check with your solicitor for advice on this.


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    #9
    Deenie123
    Closed Accounts Posts: 481 ✭✭Deenie123


    OP, conditions are there for a reason. They're fools if they are signing an unconditional contract as buyers. I'd be telling them that you have every intention to complete the sale, but will not be pressurized into completing without any protections. If they have a problem with that, tell them they can always call off the sale and look for a new buyer who will sign unconditional contracts.


    In other words, call their bluff. They can sign the conditional contract that could be completed in a matter of days, or they can leave it and find a new buyer. If they're in such a situation with the other house having signed unconditional contracts well then my money is on them not wanting to find a new buyer.


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    #10
    Victor
    Registered Users Posts: 78,299 ✭✭✭✭Victor


    Dr.Winston O'Boogie wrote: »
    As far as I am aware this isn't the case, a closing date of mid this month has been provisonally agreed so once the unconditional contract is agreed they will be signing confirming this and they will need to move out on this date.

    These usually aren't binding unless the hand-over date is 'of the essence'. Talk to your solicitor and ask what can go wrong if the contract is changed.


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