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Drafting a conditional contract

Back of a Nice Little House in Grjóti VillageThe Standard Conditions do not contain provisions for the inclusion of conditions; hence it is up to the skills of the conveyancing solicitor to take extreme care to ensure that all requirements have been satisfied.  It is important that the conveyancer take note of the following guidelines:

a)      The event on which the contract shall be made conditional should be included.

b)      The time before which the condition should be fulfilled. (This time cannot be extended)

c)      The terms on which the party with benefit of the condition can withdraw from the contract.

d)     The conveyancer should also make sure that there are no loopholes that allow the other party to escape from fulfillment of the condition or from consequences, when the condition is not met.

e)      The conveyancer should also include a precedent that makes it clear for all as to the requirements of the client’s circumstances.

Subject to Planning permissions

A contract that includes the phrase ‘subject to planning permissions’ should include the following matters:

a)      The form of the application should be agreed by both parties.

b)      In situations where conditions are attached to consents, the draft should make a mention on the types of conditions that allow the buyer to rescind the contract.

c)      Who should pay the application fee.

d)     When the Local Planning Authority does not grant permission within a stated period, can the buyer be allowed to rescind the contract.

e)      The buyer should be able to make applications without opposition from the seller.

f)       Details of the application- whether they are to be detailed or just an outline.

g)      Can the buyer be allowed to withdraw from the contract if the planning applications were never submitted.

Photo courtesy: helgividar

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