According to the lawyer as the vendor believes that the buyer has not "acted in good faith," the letter from the bank stating that finance has been rejected does not terminate the contract. Therefore the contract between the buyer and the vendor is still in place and so the deposit does not have to be returned.

I have had a look at the finance clause and it specifies the lender's name (ANZ), as well as the exact amount that was intended to be borrowed, so I don't think that is the problem.The main issue is that the vendor doesn't believe that the buyer tried hard enough to get finance from the bank.

Just to keep you all updated, my friend has just returned from seeing a lawyer and as it turns out the issue is not over missing the 4pm deadline but rather that the vendor feels that my friend did not act in good faith when seeking financial approval for the purchase of the property. Basically the vendor believes that my my friend did not try…[Read more]

Yeah I agree. Since I last posted a response on this topic the vendor has contacted my friends mortgage broker to try and obtain information on her financial background, so I am really not sure what he is up to.

Thanks for the detailed response Linar. So just to clarify, even though the vendor was notified before the deadline that finance was not approved, because the official letter from the bank was not recieved before the 4pm deadline the contract has been breached the deposit does not have to be returned.

Yeah that is exaclty I am saying, however the seller was notified before the 4.00pm deadline, in fact a couple of days before.I don't know the exact wording but basically it says that if finance is not obtained a letter from the bank must be provided before 4.00pm on the day of the agreed deadline.

Yeah, I really feel bad for her, not a great situation to be in. My friend did not have a conveyancing solicitor involved, everything was done through the estate agent. The agent did call my friend at 4.15pm on the day of the deadline to let her know that she had to provide them with a letter stating that she had been refused finance otherwise she…[Read more]

Thanks to all of you for you feedback, much appreciated. I am meeting the developer onsite tomorrow and I will be sure to let you all know how it goes.

Thanks again

BGV

I thought that if you sold your primary place of residence you didn’t have to pay CGT. I could be wrong though.