Subject to Sale or not

Hi all

A friend is looking to buy another PPOR and selling their existing one. Do they have to make the contract subject to finance and subject to sale. With say a 3 month settlement.

Whats the risk if they just make it subject to finance without including the sale of their now PPOR but sell it mean while.

They are concerned because they have found the right property for them but now not sure of the process and possibly conditions not being accepted.

They have pre approval for half the value of the property. They are borrowing from the bank at 60% Lvr.

SG
 
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I don't think i would accept an offer subject to the sale of another property. It's far too risky for the vendor. Perhaps tell your friend to try and get a 6 month settlement which should be more than enough time to sell their ppor.
 
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