Understanding the Limitations of a Solicitor’s Approval Clause

Recently, we have seen several instances where the Solicitor’s Approval clause has appeared in sale and purchase agreements for properties that clients have been looking to purchase. Whilst we can’t give legal advice, we thought it was a good time to remind our clients why it’s important to seek advice and make sure they understand the limitations of this clause.  

The common misperception that many homebuyers believe is that including a Solicitor's Approval condition in a sale and purchase agreement offers them complete protection. Unfortunately, this is often not the case. While a solicitor can identify legal issues with the property, their role is limited to 'conveyancing aspects.' This means they can only cancel the agreement based on legal impediments to the transfer of ownership, such as title issues or easements.

What does this mean for you? If you discover problems with the property after signing the agreement, such as finance difficulties, insurance issues, or building defects, you may be in a challenging situation. A solicitor's approval condition is unlikely to provide you with a way out.

To protect yourself and avoid potential legal disputes and financial loss, it's crucial to seek legal advice before signing any agreement. Your solicitor can help you understand the terms of the contract, identify potential risks, and negotiate conditions that safeguard your interests. Conditions such as finance, insurance, building inspection, and LIM reports can provide you with the flexibility to walk away from a deal if necessary.

If you find yourself negotiating on a property and the real estate agent is adamant that the Solicitors Approval clause is going to be sufficient – we would recommend pushing back on this and speaking with an expert before signing anything. If you’re not sure what to do – call us to discuss this first.

Remember, buying a home is a significant investment. Don't leave it to chance.  Part of what we aim to do at Flax Street is educate our clients on the process of buying a home so they can navigate it with confidence.

We are more than happy to connect you with trusted legal professionals if needed – we have some great solicitors that we know will look after you.

Please note that while we can provide general information and guidance on the home-buying process, we are not solicitors. It is essential to seek independent legal advice regarding any contractual or property-related matters.