When you make an offer to purchase a property, you want to make sure that you are protected in case you are unable to get financing for the purchase. That’s where “subject to finance” comes in. If you make the contract subject to finance, it means that the purchase is only binding if you are approved for financing. This offers some protection and gives you a way out of the contract if you are unable to secure the necessary funding.
Making the contract subject to finance is particularly important if you are dependent on getting funding from a lender. If you do not include this clause and you are unable to secure financing, you may be liable to fulfill your end of the contract anyway. By making it subject to finance, you can avoid any such issues and ensure that your investment is sound and secure.
In short, including the subject to finance clause in your property contract is essential if you want to protect yourself and minimize the risks associated with purchasing property.
As always if you have any queries or if we can be of any assistance, please don’t hesitate to reach out to our friendly team at Bond Conveyancing.