But under the changes effective from December 6, buyers must provide evidence, she said, citing a letter or email from the bank. Joanna Pidgeon, a partner at Pidgeon Law, said case law established that if a specific lender wasn't stipulated, you would also need to try to seek vendor finance if other avenues had proved fruitless. That had led to some buyers taking a punt and using a finance clause as almost an option to purchase, expecting that a vendor might not file legal proceedings. It now requires a purchaser to provide evidence, if required by the vendor, that they had taken reasonable steps to obtain finance on satisfactory terms, she said. The Auckland District Law Society said last month significant amendments reflected suggestions of practitioners and changes to the law in terms of legislation and judgment.

Source: Otago Daily Times December 02, 2019 00:45 UTC