Conditional and Unconditional Contracts
Conditional contracts are used to add conditional terms to the exchange of contracts. Typically they are used when buying or selling land.
Unconditional contracts mean the buyer and seller are legally obligated to exchange contracts without any conditions, such as a cooling-off period or survey results. Effectively you are waiving your rights, therefore it is important you seek legal advice first.
Attwells Solicitors are property law excepts. Being a law firm we are able to offer sector-specific advice. This includes property and land development law. We are rated as excellent by ReviewSolicitor are our customer service and value for money. In addition, we offer fixed-fee services to developers and business owners.
What is a conditional contract?
In contrast to an unconditional contract, a conditional contract include specific conditions that must be met for the exchange of contracts to occur. If the conditions are not met by the buyer or seller they are under no legal obligation to exchange contracts.
Typically developers will use conditional contracts to ensure suitable planning permission is obtained.
What you can expect when instructing Attwells Solicitors
Different types of contacts
The type of contract you require will depend on the result you desire and the risk you are willing to take. Normally risk is counterbalanced by money. Therefore typically the more risk you take the less you will pay. The trick here is to find a sweet spot, where the risk and cost are both reasonable.
Due to the complex nature of conditional and unconditional contracts, your lawyer may discuss other types of contracts with you. Our lawyers will do this if they feel your interest would be best served via another type of contract. Other types of contracts include:
Option Agreements
An option agreement gives a potential buyer a right to purchase the land, provided they give notice to the landowner during an agreed period (the option period), usually in return for a sum of money (the option fee). If the notice is given by the buyer during the option period, the landowner has to sell the land to the buyer on the terms of the option.
Overage Agreement
An overage agreement is a legal agreement between to land buyer and seller. The agreement outlines an additional sum of money paid to the landowner, on up of the purchase price.
Typically this is when planning permission is obtained, although other events could be applicable.
In this event, the value of the land increases. Equally the buyer is able to build on the land. This is can be advantageous for both parties if an overage agreement is entered into.
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Conditional and Unconditional Contracts
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