A buyer purchases a property 'subject to finance' with a 14-day finance clause. On day 16, they attempt to withdraw due to loan rejection. What are their legal rights?
Correct Answer
C) They cannot rely on the finance clause, because its time limit has passed.
A finance clause lets the buyer end the contract only by giving notice within the stated period. After day 14 the buyer can no longer rely on it; depending on the contract, the condition is treated as satisfied or waived, or only the vendor keeps a right to terminate. If the buyer then fails to complete, they risk being in breach and losing the deposit. A buyer expecting a delay should ask the vendor to extend the finance date in writing before it passes.
Why This Is the Correct Answer
Why the Other Options Are Wrong
Deep Analysis of This Property Law Question
Background Knowledge for Property Law
Real World Application in Property Law
Common Mistakes to Avoid on Property Law Questions
Related Topics & Key Terms
Key Terms:
More Property Law Questions
Under NSW Real Property Act, which of the following would NOT typically appear as a registered interest on a Certificate of Title?
In NSW, what is the primary legislation governing the sale of residential property?
In a new NSW strata scheme, on what basis must each lot's unit entitlement be set?
In a complex strata scheme dispute in NSW where a lot owner claims the owners corporation has incorrectly allocated special levy costs, and the owners corporation argues the allocation follows a validly passed special resolution, what is the most likely jurisdiction for resolving this matter?
In Queensland, if a contract for the sale of residential property is signed at auction, what cooling-off rights does the purchaser have?
- → A strata lot owner in Queensland wants to renovate their bathroom which involves moving plumbing that runs through common property walls. Under the Body Corporate and Community Management Act, what approval is typically required?
- → A property developer is selling off-the-plan apartments in Queensland. What is a key requirement under the Body Corporate and Community Management Act regarding the disclosure of estimated administrative fund contributions?
- → A property developer in Queensland must provide which document to purchasers before they sign a contract for an off-the-plan apartment?
- → Under Queensland law, what type of land tenure is most common for residential property?
- → In Queensland, which legislation primarily governs the registration of interests in land?
- → In Queensland, a buyer receives a copy of the residential contract signed by both parties on a Friday. With no public holidays in between, when does the cooling-off period end?
- → Under the Torrens title system in Queensland, which of the following is NOT an exception to indefeasibility of title?
- → A caveat lodged against a Queensland property title serves to:
- → Which of the following best describes an easement in Queensland property law?
- → Under Queensland law, a restrictive covenant attached to land is enforceable against:
People Also Study
Agency Practice & Law
138 questions
Contracts & Conveyancing
106 questions
Property Marketing & Sales
129 questions
Property Management
126 questions
Related Study Resources
Previous Question
A buyer discovers a material defect in a property after settlement. Under which circumstances would they most likely have a successful claim against the vendor?
Next Question
A developer wishes to create a strata subdivision but discovers an existing mortgage over the land. What must occur before strata titles can be issued?