What is a Finance Clause?

July 25, 2014
Chris Smith

Making your offer ‘Subject to finance’ is a standard condition in purchase contracts.

 

This clause gives you time to organise a loan for the property you’re buying. It means that if your loan application is refused, you may choose to end the contract.

 

Please use an experienced solicitor / conveyancer to prepare this wording for you. Before you finalise the wording, check with your broker (us!) to see how long they'll need to organise your loan.

 

NOTE: A finance clause is only available for private sale and can't be used at auction.

 

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