If the Contract is not subject to finance, and you are unable to obtain finance approval for the transaction or otherwise do not have immediately available cleared funds (e.g. you are relying on an inheritance or property sale), you will have no right to use the finance condition to terminate the Contract.
This lack of a finance condition places a significant responsibility on the Buyer to ensure they have the necessary funds ready and available by the settlement date. It underscores the importance of having a secure and reliable financial plan before entering into such agreements.
Buyers must consider all possible scenarios that could affect their ability to provide the funds, including delays in receiving expected monies from other sources. If funds are not readily available, Buyers may face severe consequences such as breach of contract, loss of deposits, or even legal action from the Seller.
Therefore, it's critical to have contingency plans in place and to keep clear communication lines with all involved parties. Consulting with financial advisors or legal professionals can provide additional security and assurance that all financial obligations will be met in a timely manner, thereby avoiding any potential contractual disputes or financial losses.
Disclaimer: Every property transaction is different, and the information provided may not be relevant to your circumstances. By using this site you agree that the information provided is for general purposes only and does not constitute legal, financial, or professional advice.
