A conditional contract in the context of property sale is a legal agreement where the completion of the sale is contingent upon certain conditions being met. These conditions typically relate to planning permission, financing, or other specific criteria relevant to the development of the property. Our Property Development and Commercial Property solicitors and lawyers advise sellers and buyers on conditional contracts. If you are selling a property our work typically includes:
- Initial Consultation and Advice
- We begin by discussing your objectives, particularly any conditions you want to include in the contract. These could be conditions related to obtaining planning permission, securing financing, or other site-specific requirements.
- We advise on the feasibility of these conditions and the potential legal implications, ensuring that you fully understand the risks and benefits of entering into a conditional contract.
- Drafting the Conditional Contract
- Specific Conditions: We draft the contract, clearly outlining the conditions that must be met for the sale to proceed. Common conditions include:
- Planning Permission: The contract may state that the sale will only complete if the buyer obtains planning permission for the desired development.
- Environmental Surveys: The contract might require satisfactory environmental assessments, such as contamination reports or flood risk assessments.
- Financing: The contract can be conditional on the buyer securing financing for the purchase and development.
- Timeframes: We include specific deadlines by which the conditions must be met. If the conditions aren’t fulfilled within this timeframe, the contract may be terminated or renegotiated.
- Termination Clauses: The contract will outline what happens if the conditions are not met. This could include the return of the deposit, the opportunity to extend the timeframe, or the cancellation of the contract.
- Negotiating Terms
- We negotiate with the buyer’s solicitor to agree on the terms of the conditional contract. This includes agreeing on the conditions, timelines, and any penalties for failing to meet the conditions.
- We ensure that the contract terms are balanced and fair, protecting your interests while also being acceptable to the buyer.
- Managing the Conditional Period
- Monitoring Progress: During the conditional period, we track the progress of meeting the conditions.
- Communication: We will keep you informed about any developments, advising on any issues that arise, such as delays in obtaining planning permission or unexpected survey results.
- Renegotiation: If there are difficulties in meeting the conditions, we may need to renegotiate the terms of the contract, such as extending deadlines or adjusting conditions.
- Completion or Termination
- Completion: If all conditions are met within the agreed timeframe, we will deal with completion of the sale.
- Termination: If the conditions are not met, we will deal with the termination of the contract as per the agreed terms. This might involve refunding the deposit to the buyer and ensuring that no further obligations remain.
In summary, when selling a site using a conditional contract, the role of our Property Development and Commercial Property solicitors and lawyers is to ensure that the contract is legally sound and that your interests are protected.
CONTACT US
If you wish to discuss a case with us, please contact Julian De Giovanni on 01420 81281 or fill in the form below.
“Thorough on acquisitions and smooth on sales. Proactive and commercially astute. Not fazed by dealing with large London or regional firms. Good sense of humour and remains calm under pressure. Gets the job done time and time again.”
“…I particularly wish to thank you for all your hard work, advice and support throughout, which has been a significant factor in enabling us to get to goal. I know that you have often spent a lot of time on this matter after normal office hours to ensure progress of the sale was maintained – all very much appreciated.”
“We use Julian De Giovanni because we have found him adept at identifying problems early on and then either resolving them or advising us of our position. He always has in mind the importance to us of being able to sell on completed units quickly and cleanly once we have concluded a project. Julian puts in the extra effort that is required to get the job done. He is contactable, answers the phone and replies to messages. He meets and exceeds our expectations whilst remaining a pleasant person to deal with! I have had no hesitation in recommending him to others.”
