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Signing a Contract
Conveyancing Resource Centre

What if finance is rejected?

This question depends entirely on what is in the contract.

In most cases, depending on what is in the contract and whether it is standard form or not, the buyer may be able to terminate the contract by the finance date without the incurrence of penalty.

In most standard form contracts, the standard terms provides that finance is to be on terms satisfactory to the buyer, however, they must use all reasonable endeavours to obtain finance.

If the buyer elects to terminate the contract, it is generally advisable to show some form of evidence, such as a finance rejection letter.

For more advice, you should contact us.

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