Settlements Perth Fixed Fees: 550 Buy 440 Sell in Perth, Western Australia | Property

Settlements Perth Fixed Fees: 550 Buy 440 Sell

Locality: Perth, Western Australia

Phone: +61 408 366 833

Address: Suite 1.3, 110 Erindale Road, Balcatta 6021 Perth, WA, Australia

Website: http://www.fortunalegal.com.au

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12.01.2022 TRAPS FOR BUYERS IN THE "SUBJECT TO FINANCE" CLAUSE So you’ve signed the contract to buy your dream home subject to finance. He are some little-known but critical facts about subject to finance contracts you need to know to stop that deal becoming a nightmare. If a lender is named on the contract you must apply for finance to at least THAT lender. You can apply to other lenders too, but you must include the lender on the contract. If you don’t, and you don’t get finance..., you won’t be entitled to terminate the contract. If you don’t want to be locked in to using a certain lender, simply don’t name one on the contract it’s not compulsory to do so. You must apply for finance immediately the contract is signed. If you take too long to apply and you don’t get finance, you won’t be entitled to terminate the contract. You won’t have time to work out what your income and expenses are, you must have this information ready so you can make your application straight away. If you have time to apply the same day the contract is signed, you must apply ON THAT DAY. If you sign the contract late in the day you should make your finance application next morning in order to comply with this clause. This clause is unreasonable. Before signing your purchase contract, call or message us for free wording you can use to amend the standard contract to give you a reasonable time to apply for finance. If your loan is not approved by the deadline in the contract you must either negotiate an extension with the seller before the deadline expires or give the seller notice terminating the contract promptly after it expires. Otherwise you will lose your right to terminate the contract if your loan is rejected. A finance approval means that the lender approves your loan. Occasionally a lender will give a loan approval, then terminate it before settlement. You can’t get out of the contract under the finance clause if this happens. This is also unreasonable. Again, call or message us for free wording you can insert in your purchase contract to avoid this risk. If you can’t get finance but you have lost your right to get out of the contract under the finance clause, you will lose your deposit. You will also be liable to pay the seller damages if they resell the property for less than the amount you agree to pay. Don’t take advice on these matters from the estate agent, either. While we don't suggest the agent will act improperly, they represent the seller not you, the buyer. And, while agents are great at selling properties, the meaning of a legal contract (even a standard form used every day) is a lawyer’s speciality, it’s not in the agents’ job description to be across every issue that could arise. https://www.yourmortgage.com.au//big-lenders-slash/263334/

08.01.2022 Check out our Director's new article on when to update your will. Buying a new home is a great time to evaluate whether your estate planning strategy is up-to-date.