Recorded Webinar: What Does Subject to Finance Really Mean? A Guide to Finance Conditional Clauses (Vic)

While a “subject to finance” clause in theory gives some protection to a purchaser who has yet to finalise their approvals, it still has its risks. This session will examine the perils and pitfalls of these clauses from both a purchaser and vendor perspective and provide a guide to conveyancers on advising their clients in the face of increasingly tighter lender requirements, including:

• When is a “subject to finance” clause appropriate?
• Pre-contractual advice and negotiation strategy for both vendors and purchaser clients when an offer is made subject to finance
• Key elements that need to be included in the clause from both a vendor and purchaser perspective
• What is the difference between conditional and unconditional finance approvals?
• Should a vendor allow extensions to time limits? Negotiation strategies and documenting agreement
• Advising your client – tips and traps
• How can a purchaser show “reasonable endeavours” to have sought approval and failed? Cases and examples
• Notices and termination – obligations of the purchaser when approval can’t be obtained
• Consequences of a failure to act or follow process
• Tips for drafting watertight subject to finance clauses