Your lawyer or mediator will explain these clauses to you. If your loan is not approved, you must notify the agent in writing within two days of the date specified in the sales contract. If you forget this, you lose your right to withdraw from the sale. The Bank may ask them for a letter explaining that an application for funding has been submitted and rejected. As with other contractual terms, the wording of financial clauses can cause serious problems, which is worth being careful. If you have not paid the down payment until the agreed time, the seller`s lawyer can inform you that you must pay three business days. If you do not pay the down payment during this period, the seller can terminate the contract at any time by promising to terminate it. However, if you pay the down payment before notification, the contract will not be terminated, even if you sent the notification. A: What a big question Jeremy! This is an important topic, so we will respond in “slices” in the coming weeks. First, the more conditions there are in an offer to buy a property, the less attractive that offer will be for a seller.
Lenders have a natural aversion to contracts with many conditions, as each condition offers the buyer more opportunities to terminate the contract, and therefore the risk to the seller that the sale will not continue. Therefore, if you are in a multi-offer competitive situation, you must either offer a good price or have as few conditions as possible. The three most common conditions are on the front page of the purchase and sale contract (9th edition): Finance, LIM and Building Inspection. (It also contains the consent of the OIA. This is rarely used and applies to foreign buyers who buy “sensitive” land – and this is a whole other matter!) And it is then possible to include the terms at the end of the agreement in the subsequent terms of sale. These are probably the conditions that you will be more interested in – things like diligence, safeguard agreement, escape clause, sale of buyer`s property, etc. There`s a lot of them! Before signing a purchase and sale agreement – you should seek independent legal advice – it is very difficult to change the agreement once an offer has been signed by you and accepted by the seller.