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WA Does Undated Subject to Finance Clause Apply?

Discussion in 'Property Law Forum' started by PFX, 31 July 2014.

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  1. PFX

    PFX Member

    31 July 2014
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    Hi please help.
    I have made an offer on a Perth , WA residential property "subject to finance" and "subject to sale" of my property.

    In the "FINANCE CLAUSE IS APPLICABLE" box for "latest time: 4pm on:" the selling agent has typed "refer Annexure A" being the REIWA "Subject to sale and two business day special condition" No date is typed or written in the finance clause box.

    On Annexure A, the 48hour clause is in place (and the selling agent continues to market the property and have "home opens") and I have until 14th September 2014 to sell my property.
    Annexure A (iii) standard reads: "has a settlement date on or before the settlement date of this contract" the agent has then included "and no longer than 28days from finance becoming unconditional. Settlement is to be simultaneous."

    As no date is nominated in the Finance Clause, my settlement agent informed me that the date reverts to 'Finance Definitions for latest time 1.9' being 15 days from the contract date being 9th August 2014 - an unrealistic time for me to obtain finance approval or refusal letter.

    I want to know if this is correct, what my options are (eg. ask vendor and agent for extension, obtain bank letter indicating finance approval not possible by 9/8/14...) and the possible consequences if I don't obtain finance by 9th August 2014?
    Is a letter from me indicating finance approval not possible enough to terminate the contract - finance not obtained.

    FYI: I am happy to terminate this contract if possible.
  2. Amanda E

    Amanda E Well-Known Member

    9 April 2014
    Likes Received:
    How did you go with this? Did you attempt to terminate the contract using the subject to finance condition (which is what it sounded like you wanted to do?).

    Of course, the best solution would have been to have a property lawyer review your documents and give you personalised legal advice.

    From what you set out, if you did not get finance approved by that date, then the contract would fall through.

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