Beware of Common Contract Mistakes: A Cautionary Tale for Buyers
Recently, we heard about a buyer who took the initiative to fill out a property purchase contract himself and submitted it to the agent, believing it was fully completed.
He intended for the contract to be subject to finance but overlooked the crucial Financier section. Once the contract was counter-signed and thus legally binding, the buyer realised that due to this omission, the contract was not legally subject to finance.
It's essential to understand that for a contract to be subject to finance, all three parts—Financier, Finance Amount, and Finance Date—must be completed. The contract notes clearly state that if any of these sections are incomplete, the contract is not subject to finance.
As a buyer, it's crucial to be aware of this when signing your offer to purchase. Fortunately, in this case, finance was approved. However, the situation could have ended badly for the buyer if the bank had declined the loan.
Note: This is not legal advice. If in doubt, always seek legal advice.
Stay informed and vigilant to avoid potential pitfalls in your property purchase journey!