Purchaser's failure to have finance in place for settlement

· Conveyancing and Property Law

If contracts are terminated due to a purchaser’s failure to have adequate finance in place, the consequences are catastrophic. The purchaser will forfeit the deposit paid following exchange, be liable for the balance of the 10% deposit (if a reduced deposit of 5% was paid on exchange), be responsible for the vendor’s fees and expenses consequent on the termination, and also be liable for any deficiency if the property is re-sold for a sum less than what the purchaser initially bought the property for.

A purchaser must have satisfactory finance arrangements in place before participating in an auction because if he/she is the successful bidder, he/she will need to enter into contracts unconditionally following the conclusion of the auction (in addition to making payment of the deposit required under the contract).

Brooklyn Lawyers provides detailed contract reviews for purchasers looking to buy property in NSW.