A property contract in NSW contains a clause requiring the purchaser to obtain finance approval within 21 days, failing which the contract becomes null and void. The purchaser's bank approves the loan on day 22, but the purchaser wants to proceed. What is the legal position?
Correct Answer
B) It can proceed if both parties agree in writing to extend or waive the date
Although the clause says 'null and void', Australian courts usually read finance clauses as giving a right to terminate by notice, and the clause mainly benefits the purchaser. Once the date passes, the contract does not end by itself but is at risk of termination. The safe course is for both parties to agree in writing to extend the date or treat the condition as satisfied, so the sale can proceed.
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