It is common in a sale of land contract for the purchaser to request a subject to finance clause.
The clause provides the purchaser an avenue to withdraw from the purchase if they are unable to secure finance for the purchase.
Typically the contract will specify the amount of finance being sought by the purchaser, and the timeframe in which they must gain an approval. It is critical to ensure that the timeframes are strictly followed, as a failure to withdraw may mean you are left to pay the deposit, while losing the opportunity to purchase the property.
It is also very important to keep your lawyer informed of your progress in obtaining finance, as it is possible to request an extension to the finance approval date.
The Property lawyers and Conveyancers at Kapadia and Gordon Lawyers are highly skilled and experienced with Property Law and Conveyancing.
Please contact Kapadia and Gordon lawyers today on +61 402 52 6031 or via www.kapadialegal.com for more information.
This article is provided for the purposes of general information and is not legal advice. Sale of Land contracts can vary, if you have a Property Law or Conveyancing matter, please contact us directly for tailored specific legal advice.