Relying on the Finance Clause to renege on a deal?

Things change this Friday

If you, like many people before you, have relied on the Finance Clause in a Sale and Purchase Contract as an easy way to back out of a deal, this will become much harder from Friday 6th December 2019 (this Friday).

See the article in the NZ Herald that outlines the onus of proof is now on the prospective buyer to prove they couldn’t access finance on reasonable terms.  Make sure you discuss this with your Solicitor/Lawyer well before you get into any contract for purchase (or sale) of a property.

Happy end of year crazy house-hunting everyone.  I still have a number of clients looking actively to find that first or investment property.  For the record, we succeeded in getting our current home under contract about this time last year AND we sold in late January and we had plenty of interest and sold before auction.  So, when others go on holiday or are ready to move on and their house hasn’t sold, you may just be in the right place at the right time!!

Just be mindful not to rely on a finance clause to be able to back out of a deal!!

Have a great Thursday folks.

Paul

#pauldowknowhow

#dontrelyonafinanceclauseasacatchall