Building Contracts Lending Institutions’ Requirements
The inclusion of special conditions in building contracts which limit a purchaser’s rights may result in the purchaser’s solicitor being unable to certify for a lending institution. Many loan approvals contain a condition that only the standard form of building contract may be used. Accordingly, members are advised to check all amendments to the standard building contract to ensure that they do not prevent them issuing a certificate of title in accordance with the lending institutions’ requirements.
It has also come to the notice of the Committee that certain contracts are being produced on word processors which claim to be the standard contract but do not include all the clauses.
Where a solicitor has obtained the necessary consent from the Law Society either to reproduce the building contract or to prepare a document which refers to the building contract as being incorporated therein, the following clause must be used in the contract:-
"This contract shall be read as if it contained unamended all the terms and conditions of the Building Agreement issued jointly by the Incorporated Law Society of Ireland and the Construction Industry Federation in so far as said terms or conditions are not hereinafter altered or varied".