The particulars record whether the sale is subject to finance. The general conditions then provide a period for approval, scope for a limited automatic extension that the vendor can bring to an end by notice, and a short grace period. If approval is not obtained, the buyer may end the contract within the condition.
A sale may also be made subject to a satisfactory building report or pest report, again with a short grace period. These conditions protect the buyer only if the buyer complies with them. A buyer who does not apply for finance, or who allows the period to pass, may be unable to rely on the condition. The right to end the contract must also be exercised in time and in the manner the condition requires.
Disclosure, rescission and litigation give limited comfort after the event, so thorough inspection by the appropriate experts and the buyer before signing remains the strongest protection against later problems.
CMK Legal's property and conveyancing team can act on matters like this.
These conditions carry strict timing, and the right to end the contract can be lost by missing a deadline or by not pursuing finance in good faith. Reports and inspections before signing are more effective than a later attempt to rescind.
Law referenced: Sale of Land Act 1962; contract of sale, finance and inspection conditions.