Cooling off period

[The Fuzz]

If a buyer signs a contract on a house subject to finance, does the 2 day cooling off period mean anything if there is 2 weeks for them to sort their finance?

If they change their mind after the cooling off period can't they just decline finance and the deal is off?

 

[esh]

Hey The Fuzz,

I'm not sure but I would get a pre approval befor I start looking and u discuss this before signing the contract to get a feel of how long it may take. If it is in writing "subject to finance" I will assume cooling off to end whn u get approved or not. Not sure that's what I think

 

[eKwatee]

If a buyer signs a contract on a house subject to finance, does the 2 day cooling off period mean anything if there is 2 weeks for them to sort their finance?

If they change their mind after the cooling off period can't they just decline finance and the deal is off?

Once the cooling off period has expired, the buyers is bound to the contract, subject to finance. A finance clause is not an extended cooling off period. If the buyer doesn't make their best endeavor to obtain finance, then they would be in breach of the contract and potentially lose their deposit. The buyer would need to show evidence of their finance being declined by the way of a letter from the lender mentioned in the contract. (I am assuming you are in South Aus, if this is the case, the lender who the buyer is applying to is described in the finance clause.)