Be Alert and not Alarmed – speak to your Bank about your finance application, and then to your Conveyancer
Until we are informed otherwise, it is business as usual with selling or buying property.
If a buyer feels they don’t wish to proceed with their purchase anymore due to them not being sure if they will have a job in the near future, then please contact your Banker and ask for advice.
Will your Bank provide you with a finance decline letter?
If yes, then if your offer to purchase is subject to finance, then the settlement may not need to proceed, and if so, you should receive your refund of deposit.
It depends on whether you have issued an approval notice as per the Contract. If you have, then Lawyers may argue that a decline from your Bank has no effect and you are still obliged to proceed with the contract.
If the bank won’t give you a finance decline letter, and you still do not wish to proceed….this could mean you may:
- – Lose your deposit paid
- – Be charged penalty interest for late settlement
- – Be liable for legal fees incurred by the seller against you
- – Be sued for damages by the seller, or be sued for specific performance of the Contract
We therefore suggest you seek independent legal advice if your Bank will not provide you with a finance decline letter, and you still don’t want to proceed with your purchase.
As each contract is unique, the above information is only general advice.