finance clause in REIQ contract of sale

[thefirstbruce]

Just wondering what wording is recommended for the finance clause. An REA told me "buyer's choice" is the simplest.

I understand condition 3.1 stipulates that finance must be suitable to the buyer, so am wondering if any wording can compromise that any finance must be satisfactory to the buyer.

i.e.
3.1 This contract is conditional on the Buyer obtaining approval of a loan for the Finance Amount from the Financier by the Finance Date on terms satisfactory to the Buyer. The Buyer must take all reasonable steps to obtain approval.

 

[Rolf Latham]

Hiya

id suggest being specific with the lender and the amount.

ta

rolf

 

[blossomoz]

We have just been through 'the satisfactory to the buyer' clause The lawyer ssid that if the money is not obtained from the institution on the required date then the contract falls into abeyance. This clause means just that, he told us tht if your terms are 2.99% interest & you can't obtain finance, at this figure, then the terms are not satisfactory to you.
cheers
blossomoz

 

[thefirstbruce]

We have just been through 'the satisfactory to the buyer' clause The lawyer ssid that if the money is not obtained from the institution on the required date then the contract falls into abeyance. This clause means just that, he told us tht if your terms are 2.99% interest & you can't obtain finance, at this figure, then the terms are not satisfactory to you.
cheers
blossomoz

yes but did he say if you had to state your terms are 2.99% on the contract.

these things have to stand up in court. and judges talk about what is reasonable behaviour. not to state that your terms are 2.99% on the contract, then use that as an out could be argued to be unreasonable by a judge.

 

[thefirstbruce]

We have just been through 'the satisfactory to the buyer' clause The lawyer ssid that if the money is not obtained from the institution on the required date then the contract falls into abeyance. This clause means just that, he told us tht if your terms are 2.99% interest & you can't obtain finance, at this figure, then the terms are not satisfactory to you.
cheers
blossomoz

Before the contract fell into abeyance, I think you would have an obligation to inform the vendor before the finance clause sunset that you had not been successful in having finance approved in that time. If you failed to inform the vendor, then you could have voided the finance clause, and the contract becomes contingent only on other clauses.