Sarah buys 'subject to finance' with a 21-day finance clause. On day 20 her loan is still pending, and the vendor has refused to extend the date. What should Sarah do to protect her position?
Correct Answer
C) Give the written notice the finance clause requires before the deadline passes
With the vendor refusing an extension, Sarah must use the finance clause itself: before the deadline she gives the written notice the clause requires, which is usually notice that finance has not been approved and that she terminates. What happens if she does nothing depends on the wording: under some contracts the condition is treated as satisfied, and under the REIQ contract the seller gains a right to terminate. NSW has no standard finance clause, so the special condition governs.
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