Hi, I have a preapproval of $1 million @ %100 LVR. Scenario: I sign a contract for a property at $1 million, and pay 50K deposit (5k initial deposit and 45K balance deposit). Say, in the finance clause, it is written sufficient to complete contract against Finance Amount. Then, for some odd reason the valuation comes short by 5%. The lender keeps open the option of lending me 950K as I have already paid 50K under contract, however I decide to get out of contract for cash flow reasons. In the above-mentioned scenario, could the seller argue that the buyer obtained an amount that is technically “sufficient to complete” the purchase, leaving me unable to rely on the finance clause? Thank you! @RPI
In Qld the finance condition doesn't require you to act reasonably. You must apply for finance to be able to terminate under the finance condition, but you don't have to like the offer you were given for finance. So above looks like you could terminate.
WHy not just get legal advice on modifying the clause. Say something like a loan of $950,000 with Westpac approved by 5pm on xxx.
