Property Law – Conditions in your Agreement for Sale and Purchase.
Legal Tip from Auckland law firm, Quay Law.
A finance condition should not be viewed as an option for being released from an Agreement for Sale and Purchase. Recent court cases have highlighted this issue and purchasers have found vendors taking them to court for having cancelled an agreement based on non-satisfaction of a finance condition where the vendor has subsequently found out that the purchaser has purchased another property for the same or even a greater amount.
Purchasers should consider the inclusion of a due diligence clause within their agreement, as this would give them the option of legitimately declaring the Agreement to be “at an end”.
It is always advisable to ask your Conveyancer / Property lawyer to review your Agreement for Sale and Purchase prior to it being signed by you.