Pitfalls Of Relying On A Solicitor's Approval Condition

The exact wording of this condition may differ but it usually provides for the Agreement to be subject to solicitor’s approval of the form and content of the Agreement.

Legally, the grounds for withholding approval are narrow and will depend on the exact wording of the condition.  Generally, a solicitor can only withhold their approval under this condition where the “conveyancing aspects” of the transaction are unsatisfactory.

The condition cannot be used to avoid an Agreement for reasons such as:

• The commercial aspects of the Agreement being unfavourable;

• A change in your personal circumstances mean that you no longer want to purchase the property;

• The Agreement is missing key conditions such as subject to finance or obtaining a building report; or

• In the case of a Vendor, the existence of a better offer that has been received after signing an Agreement.

After the Agreement is signed is not the time for you to instruct your solicitor to assess the merits and value of the Agreement.   A Solicitor’s Approval condition is not the catch-all condition that many believe it to be.  There is no substitute for obtaining legal advice prior to signing an Agreement.

Ensure that you are protected and that the Agreement contains all of the important terms and conditions as are appropriate in your particular circumstance.  As always, an early conversation with your solicitor is better and, often less expensive, than later.

The above information is of a general nature only. You should contact our firm for advice relating to your specific circumstances.