Offer subject to survey and contract?

Gazump

As a buyer, if I say this does this mean the sale is not formally accepted until I have performed a survey and I have confirmed I am happy with it?

But what is stopping a buyer from pulling out even if they do not do this?

Richard_Webster

Until contracts are exchanged nothing is legally binding.

"Subject to contract" is put in to prevent people being bound by a contract formed in correspondence almost by accident.

"Subject to Survey" doesn't have any real legal meaning but it simply flags up that the buyer reserves the right to renegotiate if something nasty comes up on the survey.

Gazump

I did not say Subject to Survey in my offer (verbal), which has been accepted. What now? I guess if I go back to the EA to make it clear this is what I meant, it will look bad?

chickmug

Gazump wrote: »

I did not say Subject to Survey in my offer (verbal), which has been accepted. What now? I guess if I go back to the EA to make it clear this is what I meant, it will look bad?

All Ea's will assume that any offer will be subject to lots of things including valuation, structural survey, other specialist inspections, etc so do NOT worry.

Gazump

Thanks, I hope thats right. Is it worth phoning to confirm?

Really, I should be excited at this point but I seem to be nervous lol FTB and all.

chickmug

Gazump wrote: »

Thanks, I hope thats right. Is it worth phoning to confirm?

Really, I should be excited at this point but I seem to be nervous lol FTB and all.

Having dealt with 1,000's of sales yes it is right. But if you are really so worried why not just send them an email. EA's like dealing with people who are showing a keen interest in keeping them up to date.

Euphoria1z

on a similar note, can you say subject to me getting a mortgage? so if you dont get a mortgage you can pull out after the offer has been accepted?

stanleyunwin

Euphoria1z wrote: »

on a similar note, can you say subject to me getting a mortgage? so if you dont get a mortgage you can pull out after the offer has been accepted?

You can pull out anytime you like up until contracts are exchanged. No need to add 'subject to mortgage'

All offers are provisional until exchange.

LandyAndy

For there to be a contract there has to be four elements in place (digs back to the contract law he did 30 years ago).

1. An intention to create a contract on both sides. Not much doubt about this in a house purchase.

2. An offer. 'I offer you £100,000 for your house'.

3. An acceptance. 'I accept your offer of £100,000'.

4. Consideration must pass. Generally, money has to change hands. The consideration must be 'sufficient' but does not need to be 'adequate'.

It is the 4th element that does not exist in house sales until the contracts are exchanged and the deposit paid (or at least acknowledged to be unconditionally payable). The deposit is 'sufficient' consideration to create the contract.

So until 'exchange' there is no contract and each party can do as they please for any or no reason.

SO, don't feel bad about renegotiating or pulling out if circumstances change or additional information comes to light.

Ian_W

LandyAndy wrote: »

For there to be a contract there has to be four elements in place (digs back to the contract law he did 30 years ago).

Digging back a similar amount of time, isn't it also the case that the sale of land or leasehold property is the only occasion when a WRITTEN contract has to be made to purchase or sell something?

bingibongi

Yep there must be a written contract