My main enquiry is about the Offer and Acceptance Contract by a developer regarding purchase of a vacant land. This contract was signed by myself after I tried to secure the vacant block at the land sales suite . Prior to signing the contract, I was advised by the developer that a deposit must be paid within 7 days from the date of signing to hold the block.
The clauses in the contract are as follows:
1.1 Buyer's Obligation to Apply for Finance and Give Notice to Seller
a)Buyer must:
1) immediately after Contract Date make an application for Finance approval to the Lender using, if required by the Lender the Property as security
2) use all the best endeavours in good faith to obtain Finance Approval
b)If Buyer does not comply with clause 1.1(a) or 1.1(c) then the Contract will no come to an end under clause 1.2 and the Buyer may not terminate the Contract under clause 1.3.The rights of the Seller under this clause 1.1 will not be affected if the Buyer does not comply with Clause 1.1
c) The Buyer must immediately give Seller or Seller Agent:
1) and Approval Notice if the Buyer obtains Finance Approval or
2) a Non Approval Notice if Finance Approval is rejected at any time while the Contract is in force and effect.
1.2 No Finance Approval by Latest Time : Non Approval Notice Given
1.3 No Finance Approval by Latest Time : No Notice Given
Days after signing the contract, my mortgage broker and solicitor(engaged by mortgage broker) were at preliminary stage to make a finance approval application - still yet to decide the lender. I also got a quote from a Builder for construction. However, after serious consideration, I decided not to pursue for the block anymore because after crunching the numbers where the total cost combined for both land and construction do not appear manageable, and numbers simply did not stack up.Therefore, I could not raise enough funds for the 20% deposit required without LMI and am not intending to borrow more than 80% of the total price for land and house. After 7 days signing the contract, I did not pay the $2000 deposit required by the developer to hold the block. I phoned the developer saying I was not interested in the block anymore and the deposit was not paid, and as it was an early stage I requested for termination. He claimed verbally it can be terminated , when I requested for written confirmation he refused. He was getting rude at the end and demanded not to contact him until he present this to his Directors. So this has dragged on for 2 weeks now.
So my question is , from my perspective I am still bounded by the contract and what can I do to push for termination in order to move on? What can they do at most and shall I be concerned at all?
The clauses in the contract are as follows:
1.1 Buyer's Obligation to Apply for Finance and Give Notice to Seller
a)Buyer must:
1) immediately after Contract Date make an application for Finance approval to the Lender using, if required by the Lender the Property as security
2) use all the best endeavours in good faith to obtain Finance Approval
b)If Buyer does not comply with clause 1.1(a) or 1.1(c) then the Contract will no come to an end under clause 1.2 and the Buyer may not terminate the Contract under clause 1.3.The rights of the Seller under this clause 1.1 will not be affected if the Buyer does not comply with Clause 1.1
c) The Buyer must immediately give Seller or Seller Agent:
1) and Approval Notice if the Buyer obtains Finance Approval or
2) a Non Approval Notice if Finance Approval is rejected at any time while the Contract is in force and effect.
1.2 No Finance Approval by Latest Time : Non Approval Notice Given
1.3 No Finance Approval by Latest Time : No Notice Given
Days after signing the contract, my mortgage broker and solicitor(engaged by mortgage broker) were at preliminary stage to make a finance approval application - still yet to decide the lender. I also got a quote from a Builder for construction. However, after serious consideration, I decided not to pursue for the block anymore because after crunching the numbers where the total cost combined for both land and construction do not appear manageable, and numbers simply did not stack up.Therefore, I could not raise enough funds for the 20% deposit required without LMI and am not intending to borrow more than 80% of the total price for land and house. After 7 days signing the contract, I did not pay the $2000 deposit required by the developer to hold the block. I phoned the developer saying I was not interested in the block anymore and the deposit was not paid, and as it was an early stage I requested for termination. He claimed verbally it can be terminated , when I requested for written confirmation he refused. He was getting rude at the end and demanded not to contact him until he present this to his Directors. So this has dragged on for 2 weeks now.
So my question is , from my perspective I am still bounded by the contract and what can I do to push for termination in order to move on? What can they do at most and shall I be concerned at all?
