The delivery of the Contract to legal representatives must be completed within 2 business days from exchange.
- If the Agent exchanges contracts it is important for the exchanged Contracts to be forwarded promptly to the parties’ legal representatives, particularly the Purchaser so that all necessary checks and finance arrangements can be carried out during the 5 day cooling off period. This is to avoid requests for extensions to the cooling off period.
- Quite often it is difficult to obtain unconditional finance approval in a 5 day cooling off period, particularly where a non-bank lender and/or the Purchaser is borrowing more than 80% as the loan may also need to be approved by a Mortgage Insurer. This is becoming more common.
- There may be difficulty in obtaining Deposit Bonds until unconditional approval for finance, if the delivery process is delayed.