WA Property Purchase - Can I be Sued under Property Law?

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tinmancf

Member
3 September 2014
1
0
1
Hello,

I put down a deposit 12 months ago for an apartment that was being built. It is coming close to the titles being issued, but I am having trouble securing finance to purchase the property.

If I am unsuccessful in gaining finance for the property, I realise I will lose the deposit, but will I also be held liable by the company that built the apartments because I cannot satisfy the contract...hence can I be sued?

Appreciate any Property Law help.
 

Sarah J

Well-Known Member
16 July 2014
1,314
250
2,389
Melbourne, Victoria
Hi tinmancf,

Have a look at your sale and purchase agreement. It should be made "subject to finance". If so, this provision essentially means that you agree to purchase the property for payment of the balance amount on the condition that you are able to obtain finance. If you cannot after reasonable attempts to get financed, then you should not be held liable for breaching the contract with the owner/developer.