Breach of contract

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From: Rob Dalla


If anyone can give me a quik answere it would be great.Just recently in the middle of a house and land package to purchase.I refinanced my existing two properties from one lender to another.(only a small break fee cost)Now my new financer has said that i can refinance to by another property.During the change over of refinance between lenders i came across a house and land package in brisbane.Finance was subject to approval,but i verbally said my new lender is going to provide funds to purchase another property.
Settlement of the land was due on the 20th march.My properties were only settled to my new lender on the 22nd march.
Now the thing is the solictor who was handling the settlement said the owner of the land can sue me.Residental buliding contract has been signed,but no written approval from the lender has been approved.
Can i be sued.Any quik answeres tonight would be great.
Thanks,
Rob
 
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Reply: 1
From: PT Bear


From what you have said it's hard to be sure. First of all, your 'subject to finance' clause must be written into the contract. Make sure you specify the lender of your choosing and outline the finance parameters (90% LVR etc). If you don't do this, the vendor can find your finance for you.

Second, you need a date by which you will have the finance. If you do not have the finance by that date, it is up to you to inform the vendor that you don't have finance, otherwise the contract will become unconditional and you have to settle.

I don't know exactly how this applies to QLD. My experience is in VIC only. Also, I'm not a solicitor, so the advice above is how I understand it, but you need to verify it with a qualified solicitor.

PT_Bear
 
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