The lawyer restrictions usually represent a short text, which gives you the option to withdraw from the deal, within a certain amount of time after signing the purchase agreement. Lawyer restrictions are used, if you sign the contract before your solicitor has had a chance to go through all of the documents relating to the deal.
Lawyer restrictions are not automatically a part of the purchase agreement, and you have to make sure that the restrictions are inserted. The deadline for the lawyer should be minimum 3 days. Normally the lawyer restrictions last for 3-5 bankdays, but the lawyer has – during this period of time – the opportunity to ask for extension of the lawyer restriction, in order for him/her to go through all of the documents.
By using lawyer restrictions you get time to consult with your solicitor regarding the purchase. The lawyer will go through all the documents/easements and estimate whether there are any conditions that should be granted a closer look or be negotiated upon.
If you, based on this, decide not to buy, it will have no costs for you to withdraw from the deal – besides for the solicitor fee of course.
If you wish to withdraw from the deal without using lawyer restrictions you can cancel the purchase by using the statutory right to withdraw. When using this statutory right you have to pay 1 % of the purchase price, and the cancellation has to happen within 6 days after entering the agreement.
Example of lawyer reservation in a purchase agreement:
”The buyers signature is subject to the solicitors approval of the whole deal and all its aspects. The approval must be given to the vendors real estate agent no later than XX date at XX time.”