If you fail to take reasonable steps to obtain finance, you may be prevented from relying on the finance condition, and the seller can ask for evidence of your efforts. If you don't obtain satisfactory finance by the finance date, you can terminate, seek an extension (which needs the seller's agreement), or waive the condition and proceed.
If no notice is given by the finance date, the contract continues and both parties keep a right to terminate until written notice of satisfactory finance, waiver, or non-approval is given — so the buyer can still give that notice, but only if the seller hasn't already terminated. If the contract isn't subject to finance at all, you can't use a finance condition to exit: the responsibility sits with you to have the funds ready, with a real risk of breach, deposit loss, or legal action.
Finance condition at the deadline: what to do
| Finance status by the finance date | Notice to the seller | Outcome |
|---|---|---|
| Approved (satisfactory) | Written notice that finance is approved | The condition is satisfied and the contract proceeds toward settlement |
| Not approved or unsatisfactory | Written notice to terminate, before the deadline | The contract ends and your deposit is refunded |
| Still pending | Written request for an extension | Only works if the seller agrees; otherwise you must approve, waive, or terminate by the deadline |
| No notice given by the deadline | None | The contract continues, and both parties can terminate until notice is given |
| You waive the condition | Written notice of waiver | The contract becomes unconditional on finance — you take on the settlement risk |
General information only — not legal advice. Conveyancing law varies by state and changes over time; confirm your situation with a licensed conveyancer or solicitor.