Last week you saw your solicitor and gave them instructions on what you are hoping to buy, and the solicitor checked the contract and attachments to ensure that it met your expectations.
To have finance approved is critical. Once an unconditional contract is exchanged, the purchaser is “prima facie” (on the face of it) bound to complete the contract and pay the purchase price.
If you fail to do so, the vendor may terminate the contract which would see your deposit being lost and a real possibility of being sued for further damages. The contract provides for this, which is why it is very dangerous to enter a contract without seeking proper legal advice from your solicitor.
Accordingly, it is imperative that you have made arrangements with your finance provider to ensure that the entire purchase price will be available when the time comes to settle. A vague indication or promise of finance is not enough, nor should you enter into a contract if your finance is still conditional. You must insist on the finance being available, and have that approval documented before you exchange contracts.
Next week we will look at the contract that is used for residential sales in New South Wales.
If you have any questions you would like answered either confidentially or via this medium, please email us at email@example.com
This is intended for general information and does not constitute legal advice and should not be relied upon as such. Formal legal advice should be sought.