Dear All,
I have purchased an apartment in Victoria and signed off the contract (subject to vendor’s finance through ANZ bank).
Recent investigation found out there are significant amount of defects on the apartment, therefore I decided not to cancel the purchase.
My questions are:
- What does “subject to vendor’s finance through ANZ bank” mean?
- Should it be “subject to purchaser’s finance” instead?
- There is a clause in the contract that the finance has to be approved within 14 days. What are the legal consequences by not having the finance approved within this period?
- My mortgage broker has issued a statement that the finance is not approved, however, the real estate agent demands the statement has to come from ANZ in order to cancel the purchase. Do you think the mortgage broker will be able to provide the statement from ANZ?
1. Never heard of that…
2. Sounds more like it to me!
4. Have you asked the broker if he has a written statement from ANZ that he can provide, and if not, if he could ask ANZ for one?Jacqui Middleton | Middleton Buyers Advocates
http://www.middletonbuyersadvocates.com.au
Email Me | Phone MeVIC Buyers' Agents for investors, home buyers & SMSFs.
Do you mean you decided to cancel (you said decided not to cancel)?
All depends on whether the contract should be "subject to purchaser finance" – "vendor's finance" sounds strange…
Regarding the last point, yes the seller can make such demands. This is to stop purchasers simply deciding they don't want to buy. You might have to prove that finance wasn't available in this case.
If there are serious problems with structure etc, then get in touch with a lawyer to understand your rights and what remedies you might have.
yes, I don't know what they mean with "vendor's finance".
I would think if this is considered as a mistake, the contract should automatically void?
…would definitely go to your conveyancer first and if you don't have one yet, would seek some qualified legal advice.
You had better discuss all this with your solicitor. correct answers will depend on the wording of the clauses. You may need to show them finance approval and just tell them you are rescinding the contract – but this will depend on the wording. However, your broker should be able to give you a copy of the ANZ finance declined fax if necessary.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
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