Confusion - between contracts signed and closure

[facetious]

Just reading some info on various sites has caused much confusion (or I'm getting older and more confused with age!)

Several sites I looked at say something like:
You sign the contract and pay a 10% deposit, after which if you pull out, you lose the deposit.

However, following the signing of the contracts, the purchaser's solicitor, the purchaser's solicitor checks the title deeds.

What happens if the title deeds do not check out correctly? Surely this should be done before the contracts are signed?

 

[twofor1]

What happens if the title deeds do not check out correctly? Surely this should be done before the contracts are signed?

It is, AFAIK:

Until contracts are signed, the booking deposit is refundable unconditionally, then;

The sellers solicitor draws up contracts and sends them unsigned to the buyer’s solicitor.

The buyers solicitor checks that contract, title etc is in order, gets the buyer to sign, then sends the lot back to the sellers solicitor, with the balance of the 10%.

The sellers solicitor then gets the seller to sign.

 

[LDFerguson]

twofor1 is correct - you and your solicitor get all your checks done before signing contracts. You'd get a structural survey done beforehand and also you'll need to have a formal loan offer from your bank.

Incidentally, it's not quite as simple that if you pull out after exchanging contracts you just lose your 10% deposit. If the vendor and their solicitor feels that it would be worth doing, the vendor can attempt through the courts to force you to complete the purchase.

 

[facetious]

[broken link removed]
Step 7 SIGN CONTRACTS, PAY DEPOSIT etc
Step 11 TITLE WORKYour Solicitor raises Requisitions (lengthy Questionnaire) on Title and these are sent to the Sellers Solicitor together with a draft Purchase Deed. The Sellers Solicitor replies in writing to the Requisitions received from your Solicitor and approves the Deed.

http://www.citizensinformation.ie
Requisitions on Title and Deed of Conveyance


After signing the contract and before the completion date of the sale, your solicitor raises some general queries about the property with the seller's solicitor. Requisitions on Title are a standard set of questions relating to the sale of a property that deal with such things as whether fixtures and fittings are included in the sale.

(x) Raising of Requisitions on Title.
On the exchange of Contracts, your Solicitor will raise what is referred to as Requisitions on Title which is a set of queries dealing with the property you propose purchasing. The Vendor's Solicitor will then reply to these and arrangements will be then made to complete the purchase of the property by your Solicitor.

I think you have misunderstood my question. In the above 3 quotes, each one states that a requisition is raised which requires the vendor's solicitor to answer - this is after the contracts have been signed.

As the contract has been signed, and a 10% deposit paid; what happens if the answers to the requisition are not suitable to the purchaser, taking into account that contracts have been signed? Surely this should have been dealt with before the contracts were signed to prove that all is in order and acceptable to the purchaser.

It is just a hypothetical question.