Conveyancing – getting the contract right – finance clause

by Andrew Lind on 30 May, 09

Unless the information in the Schedule to the contract is completed and correct, the conveyancing finance clauses may not work.

Firstly, unless all items in the Schedule are completed the finance clause may not apply at all. That is, the contract may simply not be subject to finance.

Secondly, if the language used is vague, ambiguous or uncertain, this may mean that operation of the conveyancing finance clause may become uncertain and potentially unenforceable. For example, language like, “Sufficient to complete” for the finance amount or”Any bank or financial institution” for the financer may be dangerous.

Solution = whether you are selling or buying have our conveyancing lawyers look at the contract before you sign it. It’s always cheaper to get it right before you sign rather than try and fix it or argue about it later.

Contact: Brisbane Conveyancing team | Gold Coast Conveyancing team

{ 6 comments… read them below or add one }

catherine June 2, 2009 at 4:56 pm

How do you serve notice on a vendor that you have been unsuccessful in obtaining finance and thus are withdrawing from the contract (there is still time left under the finance clause)? Is there a specific form? Is it called “withdrawing” from the contract or cancelling the contract? or something else?

Thanks,
Catherine.

Andrew Lind June 4, 2009 at 3:50 pm

You must carefully follow the process specified in the contract of sale, usually in the “Finance” clause and the “Notices” clause. Is it usually called a notice of termination. Even if you have not had a lawyer helping you in the conveyance so far, I suggest that it is wise to engage a lawyer to help you with this notice.

Our Brisbane Conveyancing or Gold Coast Conveyancing team would be happy to chat to you.

regards
Andrew Lind

Cathy March 11, 2010 at 10:37 am

HI,

I have signed sale contract subject to finance, the bank has fomal approval for me, but it was [dragging to print out the contract for me to sign], its has passed the settlement day. If I want to withdraw the sale contract is that possible? Thanks for your help

Andrew Lind March 11, 2010 at 2:32 pm

Hi Cathy

You need good swift legal advice. If the property is in Queensland, our property and conveyancing lawyers can help if you wish.

regards
Andrew Lind

sara December 7, 2010 at 7:20 pm

Can there be a 48 hour clause put on a subject to finance contract, to make it conditional if there is a unconditional cash sale available for contract?

Andrew Lind January 21, 2011 at 3:44 pm

You may need to call me to discuss this one.

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