'Subject to Finance' clause in QLD

Hi, this is the first time I purchase a House and Land package in QLD. According to below clause 3.2 (2), can I still terminate or give up the contract even if finance approval is obtained? Thanks

3.2 The Buyer must give notice to the Seller that:
(1) approval has not been obtained by the Finance Date and the
Buyer terminates this contract; or
(2) the finance condition has been either satisfied or waived by the
Buyer.

 

its one or the other.
if approval has been obtained then clause 1 could not apply, unless you lie.

 

Its not uncommon to be asked for some confirmation of finance refusal.

 

That's right, I will need to provide correspondence of finance refusal. Thanks

 

Thanks Terry, my concern is about valuation which won't be done till next week, but the developer is pushing me to sign contract this week else they'll take the block back. Say if the val is too low and I will not have enough deposit, can I still use Clause (2) to terminate?

 

not necessarily

 

subclause 2 doesn't mention valuations.

Seek legal advice if you haven't entered the contract - and even if you have.

 

But a low val may mean you lack the financial capacity to buy as you have a shortfall.
Tip : Have your solictor advise on and write to indicate this shortfall now exists and request vendor finance on terms similiar to a bank lender. If they refuse ?......