Finance Approval and Conveyancing by Eva Judge

If you've ever tried to muddle your way through the Standard REIQ Contract that is used in conveyancing in Australia, then you've probably been held up by a number of its confusing terms and phrases. Unless you are a conveyancing professional, such contracts can appear to be written in foreign languages. It helps to have a basic understanding of what such contracts are trying to convey, though - and clause three is one you should be clear about.

Clause Three and Finance Approvals -

The third clause of the Standard REIQ contract that is used in conveyancing concerns finance approvals. In order to satisfy the terms of the contract - and to proceed with the transaction - a buyer must have been approved for financing. Unfortunately, many would-be home buyers think that conditional finance approvals are sufficient; they are not. Under the terms of clause three, you must have clear, unconditional approval for financing.

When shopping for a new home, many prospective home buyers get pre-approved by banks and lending institutions. While this can give you a good idea about how much you can afford, and is generally a smart way to proceed, it is not the same as actually obtaining approval for financing. It's simply a preliminary way to get a feel for what you qualify for in terms of a home loan.

A common issue occurs when a home buyer obtains financial pre-approval and commences shopping for a new home. Upon finding one, they begin the conveyancing process. When confronted with clause three, they inform the seller than it is satisfied because of their pre-approved status. In reality, clause three has not been satisfied. At this point, the seller's real estate agent or other party informs the buyer that they have not met the terms of clause three, which leaves the buyer feeling completely lost and confused. Of course, buyers who have retained the services of a top-notch conveyancing solicitor don't have to worry about inadvertently misunderstanding this important clause.

Don't Be Left in the Dark -

In order to satisfy the terms of clause three, you have to have been approved for financing in order to purchase the house in question. This distinction may appear to be simple, but it is also critically important. Failure to understand the terms of this clause can trip up the conveyancing process and make it take much longer than it should. In the meantime, the house that you want could very easily slip between your fingers. It is always wise to hire a reputable conveyancing company to assist you to navigate through the complicated conveyancing process used here in Australia.

About The Author

Many times, the conveyancing Brisbane process gets held up because prospective home buyers aren't actually approved for financing - at least not in a way that satisfies clause three. To ensure that your conveyancing Gold Coast process isn't delayed at all, always work with a solicitor from Ownit Conveyancing http://www.ownitconveyancing.com.

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http://www.ownitconveyancing.com