You’ve sold your home and the contract is subject to finance. The latest date set by the finance clause has come and gone and you’re still waiting for the buyer to send you finance approval.
What do you do?
The standard-form contract used in WA, known as the Contract for Sale of Land or Strata Title by Offer and Acceptance has a fairly complicated finance clause setting out the rights and obligations of the seller and buyer in detail.
It’s best to get legal advice before taking any action. As your independent settlement lawyers, contact us to book a 30 minute consultation ($198) or a 60 minute consultation ($385). Individual circumstances call for individual solutions. That said, we can make a few general points with reference to the standard-form contract:
- For a short time you can wait and see – finance may be approved one or two days late. Alternatively, if the buyer can’t get a lender to approve their finance, they may send you a non-approval notice bringing the contract to an end.
- If both parties agree, you may vary the contract to extend the deadline for finance approval. You should formalise any variation in writing.
- If by the Latest Date the Buyer has not given you (or your agent) an approval notice or a non-approval notice then the contract remains on foot but you have the right to terminate by written notice. This is pretty serious and we recommend you seek legal advice to make sure you end the contract in the right way.
Remember to keep your settlement lawyer or settlement agent informed of developments.