One key, when buying property, is to make sure that you have a written unconditional finance approvalfrom your financier before your purchase contract become unconditional as to finance.
Conditions such as:
- Subject to a satisfactory valuation;
- Subject to lenders mortgagee insurer approval,
are often in the fine print.
If these conditions apply, you would be wise to have these conditions satisfied before having an unconditional commitment to proceed to settlement of your purchase.
If you are purchasing a property off the plan you need to be aware the the financier will usually want to formally value the property once construction is complete. If this applies to you you may want to consider adding a condition to your purchase contract that the purchase is subject to it valuing up at a certain level once construction is completed. This is likely to be resisted by vendors but in a buyer’s market there is little harm in asking.
Finally you need to be aware that almost every finance approval that I have read techinally allows the bank to “pull the plug” and not advance the money at any moment right up until the time the money is actually advanced. This risk is perhaps small as after all banks are in the business of lending money however in a context where banking shocks are not unknown this little talked about risk perhaps needs to be aired.
All good reasons to get our Property and Conveyancing legal team in your corner. So whether you need Conveyancing in Brisbane, the Gold Coast or anywhere in Queensland let our Conveyancing Solicitors look after you. You will notice the difference.