Finance Clause in WA

[Zorros Whiskey]

Just seeking some simple advise where I am getting conflicting information on the net.

If some one puts in an offer and acceptance for property in WA and puts a finance clause is applicable in with the latest time 4:00pm 21 days from acceptance.

What would occur if the finance is not approved by this date and time and in fact takes 35 days to be approved.

Would you have to seek and extension even if it wont affect settlement date. If so what is the process for this.

Thanks

 

[Rolf Latham]

after 21 day the seller has the option to terminate the contract OR extend your finance clause

ta

rolf

 

[Zorros Whiskey]

Thanks, would this cause a deposit to be lost?

 

[Rolf Latham]

not usually, BUT depends on the terms of your contract

ta
rolf

 

[D.T.]

Most likely there'd be a discussion on how likely finance was and how far along the approval is.

In saying that, a broker who understands your financial situation will be able to advise up front whether finance is possible for you and how long lenders are currently taking.

 

[Zorros Whiskey]

Thanks for your replies. I think this may be applicable to me at the moment only because of distance for documents to get signed by several parties and time frame to return.

Just may be a delay in approval but will not effect settlement date. I'm dealing with sellers who are very very keen to settle. I also want to settle but things do take time. Settlement date not locked in till 'on or before 30 April 2015'.

Only delay will be finance approval.

 

[Ausprop]

if you fail finance you will get your deposit back

just ask the sellers for an extension. your settlement agent should do this - it's a simple annexure.

 

[westminster]

Ask for an extension as early as possible so that if it's not granted you can pull out all stops to get it done by 21 days.

In future give yourself 28 days

In theory after 21 days the contract is still valid and is valid until the Seller terminates it but they can terminate it from day 21 as you haven't met the terms of the agreement.

Also if you have an ipad and an app called Notability you can use it to sign a PDF document and email back. I wouldn't admit that this is what you are doing as banks will probably have a pink fit about an electronic signature but they need to get with the times. It saves you printing, signing, scanning, emailing.

 

[Zorros Whiskey]

Thanks guys. The Ipad app sounds great. Only problem for me was that I got stuck somewhere with no mobile access, no internet and all I had was a land line in an office.

I will get onto an extension first thing. As I said the seller is very very keen to settle and so am I.

 

[Jake D]

If they're in a hurry and panic about your finance taking it's time, let them know that even with a couple of weeks extension, you will still be settling a lot sooner than if they re-advertised, signed a new contract and started someone else's finance application.