We have a ‘conditional contract‘ available on this site which is a contract that is used to create and option in the deal to but property. The entire deal is under contract and both sides are bound – subject only to one or more conditions being met. The most usual condition is a grant of planning permission.
About this document
This is a conditional contract. That is, a contract for sale where both sides are bound – subject only to one or more conditions being met. The most usual condition is a grant of planning permission. This conditional contract is suitable for any type of land – field, farm, shop, garage, house, derelict site, and so on.
Application and features
Suitable for any type of land – field, farm, shop, garage, house, derelict site, and so on
All the variable matters in one place for ease of completion
Comprehensive notes to guide you
Contents
The essence of the agreement;
Provision for buyer to nominate the purchase to someone else;
Buyers warranties;
Sellers warranties as to the current planning status of the land;
Confidentiality
Indemnities
Director’s guarantee, in case the seller is a company
Inclusion of any unregistered rights over adjacent land
Explanatory notes
There are two types of conditional contract:
1) a contract subject to a condition precedent: this means that the contract does not come into effect until the terms of the condition have been met; and
2) a contract subject to a condition subsequent: this means that the contract comes into effect immediately on exchange, but can later be terminated if the terms of the condition are not satisfied.
There may be significant tax consequences depending upon whether or not a contract is subject to a condition precedent or a condition subsequent. This is because exchange of contracts where the condition is a condition precedent will not lead to a transfer of the beneficial interest in the property to the buyer until such time as the condition is fulfilled. Where, however, the condition is a condition subsequent, the beneficial interest in the property will transfer to the buyer immediately on exchange, as in the case of an unconditional contract, although the beneficial interest will then transfer back to the seller if the contract is subsequently terminated following nonsatisfaction of the condition.
You can obtain a copy of the contract by clicking here:
