Everything you Need to know about Online Property Sales and Arranging for Finance


Buying a property is one of the most crucial decisions ever. It is an expensive affair, and you need to arrange for funds before you make the big decision. Finding a property can also be a challenging task. However, many times, people find the property first when the finances are yet to be arranged. In such a situation, people need to prepare for various agreements, which are known as ‘subject to finance.’ Not mentioning it in the contact can put them in trouble.

What is ‘subject to finance’?

When you make ‘subject to finance’ offer, it is a standard condition in the home buying contracts. The clause benefits you as it gives you time to arrange for the loan for purchasing the property that you intend to buy. It safeguards your interest because if you fail to arrange for the required funds, it allows you to end the contract and not go through with the sale.

However, just like other conditions of the contract, the ‘subject to finance’ clause can also lead to serious issues, so you need to be careful. Thus, it is better to take assistance from a solicitor while engaging in online property sales or purchases. Clarity Online is a virtual soliciting firm that offers legal assistance and suggestions for your real estate transactions. They do not just help in verifying your purchase/sales agreement but also help in making one for you. They go through the terms and conditions of the contract and offer appropriate suggestions.
 
When you are deciding the financial conditions of the contract, avoid getting suggestions from the real estate agent as their advice is dependent on what benefits their interest and not yours. Also, you must not forget that agents get a commission from selling properties. Be aware of the agents that try to be extra helpful in preparing the finance conditions for you. They may take the opportunity to minimize the finance period or change the notice period. Your contract may become unconditional without even making you realize the same.

Most people get into trouble in the following situations:

1) Believing that finance has been approved when it hasn’t. 
2) They are not insisting on getting a valuation condition in the purchase contract.
3) Unintentionally letting the finance condition lapse.

If it seems like your finance is not going to be approved in time, you should get a finance extension. You need to get it in writing from a solicitor. In case you don’t get the extension, you may need to proceed with the sale. If your loan fails to get approved, notify the agent in writing within two days of the date, state in the sale contract. If you don’t do this, you will lose your right to pull out of the sale. You will need a letter from the bank that the finance application was made but refused.

Next time when you make online property sales or purchase contracts, do verify the terms and conditions with Clarity Online to safeguard your interest. 

Popular posts from this blog

Tips for Inspecting the Home You Wish to Buy

Image
Inspecting a house before making a purchase decision can be a daunting task for most people, no matter how experienced they are. One must take care not to be swayed too much by the sweeping staircase or warmly coloured walls. After all, there is more to a home than its interior décor. Take care to consider the state of repair of the building, just as much one would judge the layout of the kitchen and be attracted by a well-planned bedroom. In case of a serious buyer, it pays to be thorough. Make an effort to find house information on a substantial basis. A few essential checks can make a difference in finding a dream home instead of a costly mistake. Here are a few things you can check with the help of a real estate guiding platform, Clarity Online to evaluate a potential new home:   •    Check for mould, water stains or corrosion Examine the walls for any signs of water leaks or moisture penetration, particularly near baths and showers. This may not be a structural defect
Read more

How Changes in ‘Off The Plan’ Concession Affected Real Estate in Victoria and a Solution to it

Investing in real estate or buying a residential property is a great way of expanding one’s wealth and assets. With so many different ways of growing one’s wealth by investing in real estate in Victoria , it is essential to make an informed and smart decision so as to maximize the return in this profitable sector. However, if one is a novice to this market and is unaware of its dynamics and intricacies, it is crucial, to begin with, the off the planned law established by the Victorian Law on July 2017 which had a huge impact on the real estate scene in Victoria. Here is detailed information on off the plan property and concession and how to avoid its common pitfalls. What is off-the-plan property and concession? The term ‘off-plan’ property refers to any land or property which is available for purchase even before its construction has commenced. This is where buying ‘off-the-plan’ comes from, and it typically refers to the purchase of apartments. Off-plan property is favourable f
Read more