I believe we are facing into a dramatic change in the way property contracts are being handled, and I would be most interested in other peoples opinions....
Here is the issue.
Up to now it has been possible to agree the terms of a binding contract with a purchaser, in that if they had a letter of offer from a bank saying that they would get the money, they could sign a contract that was binding on say day 10 having agreed their purchase on day 1. The sale would then complete on say day 30 ; and all parties would have had from day 10 to day 30 to get their affairs in order.
Now I understand, that in response to the new practice of the banks (that they will not necessarily honour a loan offer) the legal industry are being advised to create contracts for their clients that reflect this uncertainty, and create contracts that are only binding at the last minute!
Am I the only person who see's huge problems with this? I know they have a similar system in the U.K. and quite frankly I always thought ours was better because certainty entered the process much earlier.
. It seems to me that new changes proposed mean that a ' signed contract ' no longer binds the purchaser to the sale. With an unconditional signed contract becoming more difficult to get, a Sale will only be a Sale on completion.
I think this is going to create great difficulties in the process as we know it.When for example does a person move out? I would be most interested in anyone else's views
H
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