What Do You Need To Do When Your Finance Condition Is Due
Several clients get confused as to what they need in terms of the finance approval condition.
One-two days prior to your finance condition being due, we will ask you to confirm whether you have obtained satisfactory finance approval and are happy for us to advise the seller’s solicitor that the condition is satisfied.
In order to satisfy the finance condition, you do not need to have signed and returned the loan documents and in most cases, this is completed after going unconditional and before settlement. What you do need is a formal letter from your broker/banker advising that you have been approved to borrow a loan up to X amount. You should check this letter for the following:
- Confirm your names are correct and the same as on the Contract
- Confirm the security property is correct
- Loan amount, loan term and interest rate; and
- Any applicable special conditions that you need to meet.
If you are satisfied with the above and are happy to proceed, you need to send us instructions via email to say that you are happy to satisfy the finance condition and attach a copy of the formal approval letter for our records.
If you do not have the finance approval letter by the due date, please let us know if you require an extension to the finance condition – it is best if you can let us know the day before the condition is due to give the seller time to instruct their solicitor.
Please note that if the finance condition is not satisfied or waived by the buyer by 5pm on the due date, the seller may elect to terminate the contract, in which case, the deposit would be reimbursed to you.
Should you have any queries or concerns regarding the above, please do not hesitate to contact our office and we would be happy to assist.
