New commentary and precedents for Contracts subject to finance have been added to the By Lawyers New South Wales Conveyancing Purchase of Real Property publication.
As a result of a suggestion from a By Lawyers user, we have updated the Purchase of Real Property (NSW) Guide with a new section of commentary and a folder of precedent letters.
The commentary now includes a section titled Contracts subject to finance, which discusses the increasingly common situation where a purchaser has not secured unconditional finance approval before exchange. Practical information is included on:
- negotiating the inclusion into the contract of a special condition making completion subject to finance;
- the effect of unsuccessful finance applications;
- seeking an extension of time from the vendor where necessary;
- serving written notice where finance falls through;
- the requirement of the purchaser to not otherwise be in default when ending a contract;
- continuing without unconditional approval;
- forfeiture of deposit and damages – including negotiating a reduced amount.
The following new precedents to assist with contracts subject to finance have been added to Folder C. NEGOTIATIONS & EXCHANGE > IF REQUIRED – UNCONDITIONAL CONTRACTS:
- Letter to vendor’s solicitor confirming contract unconditional;
- Letter to vendor’s solicitor requesting extension of time; and
- Letter to vendor ending contract.
At By Lawyers we pride ourselves on the cooperative and collegiate relationship we have with the many firms using our commentary and precedents daily. We value the feedback that we receive as it helps us continue to improve our publications, as in this instance. We love to hear from you!