Having a Bet Each Way: What Does Subject to Finance Really Mean? (NSW)

Rising interest rates and falling house prices means buyers are genuinely nervous when entering the property market. Subject to finance and other conditional clauses in a contract of sale can minimise the risk but how helpful are they in practice and do they provide a false sense of comfort to a buyer? This session will help you brush up on your drafting skills and improve your understanding of finance approval pre-conditions, including:

• Key elements of subject to finance clauses
• Should a legal practitioner advise their client of the need for a subject to finance clause? Lemongrove Services Pty Ltd v Rilroll Pty Ltd [2019] NSWCA 174
• Why should a vendor agree to accept a clause and what limitations should they insist on
• Drafting tips for subject to finance clauses including time limits, notice provisions and purchaser obligations
• What constitutes “reasonable endeavours” and what proof is required that the obligation has been met?
• Are any additional special conditions needed to support subject to finance clauses?
• Negotiation, extension and other options for both vendor and purchaser
• Consequences of failure to obtain finance and essential steps the purchaser must take to rely on the contract
• Lessons from cases