WA Withdrawing from Purchasing Property - Possible under Property Law?

[Junjl]

I'm in a situation where I have signed pre-construction and land contracts. It has been about 7 months and my financial circumstances have now changed and settlement for the land is due on the 31st of July. My finance agent (after two weeks of being unreachable by myself, my builders or the land agents) has told me that since our change of circumstances will only occur in 2016, we should be fine. But we are uncomfortable with proceeding due to the knowledge that our workloads will be essentially halved.

Is it possible to withdraw from our contracts under contract law or property law? Losing the deposit is no problem, but we no longer have the intent to purchase the home & land package.

Thanks.

 

[Victoria S]

Yes, its possible to withdraw from your contracts, but there will likely be consequences set out in the contracts as well. Read them very carefully. Sometimes you can let the other parties know about your changed circumstances and see if there's any wriggle room to negotiate a way out, but you may lose your deposit if that is what's set out in the contracts.

You might also find this article helpful: Backing out of a property purchase