10 Mistakes When Purchasing a Property Which Can Be Avoided - Part 5 - Arranging Finance

 


10 MISTAKES WHEN PURCHASING A PROPERTY WHICH CAN BE AVOIDED

Part 5 – Arranging Finance

Sydney-based legal practice Checkbox Legal will assist you to avoid or minimise complications which arise when purchasing real estate. We helped many of our clients to avoid multiple pitfalls in the process and now ready to share our knowledge with you.


ARRANGING FINANCE

In our previous publication we discussed cooling off period and suggested that that grace period is used to undertake due diligence checks and arrange finance.

Having said that it may not be possible to obtain a formal approval for finance within that time, even if the vendor would allow for extension of cooling-off period for a few days more.

Finance, which most of the time comes in a form of a home loan, secured on the property you are proposing to purchase, is a domain of specialists called mortgage brokers, and we simply note from our experience that lack of finance is an expensive misfortune or mistake some purchasers make (unless of course it is a “cash sale” with no money borrowed).

A contract for sale and purchase of property usually contains provisions drafted by vendor’s solicitor which require purchaser to pay penalty interest and vendor’s legal costs in the event that settlement is delayed due to lack of finance.

In some cases vendor may issue a “last warning” Notice to Complete which would provide purchaser with 14 days to settle the property.

Conclusion: obtaining finance is an important step in conveyancing transaction.

As always, we remind that we at Checkbox Legal provide not only residential and commercial conveyancing services, but also act for our clients in a variety of other legal matters - check out our website for details.

Contact Checkbox Legal on our phone number 0410 64 54 53 or sent us an email.

Regards


Andre Petrov - Checkbox Legal.

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