Finance Approval and Conveyancing

A layman in the field of financial transaction is likely to go through the Standard REIQ Contract’s clause three which is very much related to the conveyance process this contact let one feel that his financial pre-approval is up to the mark according to its terms and conditions. This feeling may not be very much true and may lead to an ambiguity in the further financial processing. So it is advised to have a better look and get a surety of the financing to ensure the proper orderings. If this point is not taken care of, then it may lead to delays, hold-ups in the process of conveyance.

Some words about clause three-

Standard REIQ Contract’s clause three is in concern with finance approval related to conveyancing.

The first and foremost thing required in order to fulfill contract’s terms and conditions and to move on with the transaction is the financial approval of the buyer. On the contrary, thinking of many home-buyers goes on the other way as they think that approvals of conditional finance are enough; which actually may not be the case. According to clause three, one has to have unconditional financial approval.

Before going for a purchase of a home a buyer gets loan instructions, the monetary figures that will incur during the transaction. After this a buyer needs to have approval from the bank stating that the buyer is capable to go on with his plans with the new home. This helps a prospective buyer to have an idea of the total cost and up to what level one can afford. All these give the buyer a feeling of where he can stand in the purchasing matter and availing home loan.

Just having a pre-approval does not mean that one has satisfied the condition of clause three. Sometimes buyers treat it as the satisfying condition and start there happy planning for the house and shopping. Later when they are informed by the real estate agents that the clause three’s terms has not been fulfilled by the buyer, they are left with a lot of confusion and depression. So to avoid this buyer must not depend only on the pre-approvals from the banks, rather should go with the other satisfying conditions for the clause three. There plays the role of solicitor who can take an advantage of this lack of information of the buyer.

Apart from the above, an approval for financing would help a buyer in satisfying the terms and conditions of clause three. Lack of knowledge may lead to a pause in the conveyance process, making it much longer and a troublesome task to go on with. A good, knowledgeable , experienced solicitor can help in a better way in this regard.

Tags: conveyancing, Finance Approval