NSW subject to finance

Discussion in 'Legal Issues' started by CK_Invest, 20th Apr, 2020.

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  1. CK_Invest

    CK_Invest Well-Known Member

    Joined:
    4th Apr, 2016
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    Location:
    Sydney
    Hi

    Is there any way I can structure a purchase agreement such that i can back out of a purchase without losing any funds if finance fails?

    I am aware of subject to finance clause but still i believe the standard clause will still make me lose 0.25%

    Anyone have experience?

    I am looking to make an offer in a 'for sale' purchase where the house has been on the market for a while though a bit skeptical on financing situation

    Thanks
     
  2. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    Gold Coast
    I have seen it, but to be fair . such a move does 2 things.

    • Your offer loses posture
    • Its likely unreasonable on behalf of the REA and vendor

    THis makes it obvious to them that you havent locked down your finance ie assessed pre approval, and the request for the transfer of risk to the vendor may be taken as you being a tyre kicker,

    ta
    rolf
     
  3. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Plus Member

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    Australia wide
    Yes you can do it. I have done it myself for clients, when I used to do conveyancing. Just get the seller to agree and you can structure it so that you don't lose 0.25%.

    Keep in mind that this is not commonly done in NSW and like Rolf says it makes your offer unattractive - or less attractive I should say.
     
  4. Paul@PFI

    [email protected]PFI Tax Accounting + SMSF Business Plus Member

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    If the vendor is dumb or desperate. Any agent would likely suggest a unsound offer. It's like a no deposit sale.