Property Sales And Purchases In
a Challenging Market
As has been reported widely recently, economic factors including inflation and increases in interest rates have significantly affected the marketplace relating to the sale and purchase of real property, particularly in relation to housing but also affecting the commercial and industrial sectors.
In this short article I am focusing on purchases. Significant care is required by purchasers in the review of contract documents provided by vendors and their agents preferably before documents are signed, but otherwise within three business days of signing by the purchaser (where cooling off rights apply) to ensure that all terms are as has been agreed.
In particular compliance with time frames relating to loan approval dates is vital as lending institutions are now taking longer than in recent times to assess loan applications.
Strict compliance is required in relation to obtaining approvals or seeking extensions of time for loan approval, and if not granted, then in ending the Contract in accordance with the terms set out in the contract. Failure to do so can have devastating consequences including loss of deposit and exposure to damages if the property is resold at a loss, which is possible in a falling real property market.
RNG Lawyers property team regularly receive contracts for review prior to signing and provide relevant timely advice to our clients to address the compliance required under contracts subject to loan approvals and similar special conditions.
Our strong message to our clients is to have contracts reviewed and discussed time periods proposed for special conditions preferably before contracts are signed, but if this is not possible, to seek our advice immediately contracts have been signed to enable the purchaser's rights to be protected where relevant.
Do not delay seeking advice as time is critical in most cases.
If you have any queries regarding the terms of any contract of sale, please contact Deborah McCloskey in our Property team on 9739 7377 who can assist you in this area.
Written by RNG Lawyers Property Team, Barry Northfield