The Lending Process Here is a flow chart to demonstrate the process that the bank goes through to determine whether your loan application will be approved or not: There’s a lot more to finance than the way you structure your finance, which is important. When you start...

Collateral Collateral is basically what usable equity you have in your home or other real estate investments. I say usable equity because in some cases it may be beneficial to utilise the Mortgage Insurers and get 90% against the value if your equity position is weak. Most...

Settlement Day A lot of people have to be there on settlement day. You’ve got both sets of bankers, and both sets of lawyers. They’ve all got to be at the one spot at the one time, do all their bits, do their little inputs for...

Pre-Settlement Inspections Of course, on settlement day, one of the things that I highly recommend is you go and do a pre – settlement inspection. If you are buying a place at a distance, then send around the building inspector. The building inspector has inspected the...

Insurance In New South Wales, the risk of the property passes at settlement. However, the practice is still, once it’s signed, as a matter of prudence, you should take out your own insurance for a number of reasons. You don’t know that the seller has got...

Site Inspection Clause If you want to get onto the site prior to settlement, make sure it’s written in the contract that you’ve got access. Otherwise, once you’ve signed the contract, the buyer can say to you, “Sorry, I’m not letting your air conditioning man or...

Due Diligence Clause One of those clauses in there in both the contract and the option agreement is the due diligence clause. The due diligence clause is kind of a get out of jail free card. People use it to mean a lot of things, but...

Finance Clause You’ve got to have finance clauses in there that allow you enough time to organise your finance. Finance at the moment is taking a lot longer than it normally does. So you at least want 21 days, preferably 28 if you can get it...

Building and Pest Clause In every other State, bar New South Wales, we have conditional contracts. We put clauses in to make these conditional contracts. There are the normal ones like building and pest, and finance, but how detailed do they have to be or can...

Commercial Buyer’s Risk You should never buy a commercial property unless your solicitor has seen the contract. There’s too much involved. There are GST issues, there are tenancy issues, and there are a lot of things in commercial that do not relate to residential that your...

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