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Incorporating Jeffrey Choy Legal

Property - Buying and Banks

31st May 2019

Welcome to my Newsletter!

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Thank you to all those readers who have prompted me to write this newsletter. Your support and reminders are very much appreciated. On this occasion I want to talk about buying a property and dealing with banks.
 

PROPERTY: BUYING AND BANKS

As banks are a topic of interest and I have just completed several purchases last week and think this might interest you.

As a result of the banking Royal Commission the banks have tightened their lending criteria. In many cases persons who qualify for a loan under the new rules are being put through extended procedures. This includes being requested to provide further evidence of income or being required to provide guarantors just before settlement recently.

In two cases financed had been formally approved.  A week before settlement the banks required addition information and documents. In one case the bank was not able to provide the required documents to my client in time. in the other the bank provided the document in time, but mislaid it.

In both these cases the vendors issued a Notice to Complete. A Notice to Complete allows the seller to cancel the sale 14 days after the notice had been issued. I actively chased the banks to assist my clients. It took many calls from to get the banks to provide the documents. Fortunately, this occurred before the expiry date of the Notice to Complete. 

My clients were subjected to penalty interest as settlement was late. Westpac as soon as this delay happened, took responsibility and told my client that they would refund the penalty interest. For my other client, I am are assisting her to negotiate with the Commonwealth bank for a refund.

Such incidences as this are becoming all too common and purchasers need to continually monitor what is happening. They need to be in constant contact their finance providers and other professionals to ensure everything is ready for the settlement date. 

I always constantly monitor all aspects of my cases to assist my clients to successfully finalise their purchase or sale of property. 

I’d like to leave you with a quote from Nelson Mandela:

“Peace is not just the absence of conflict: peace is the creation of an environment where all can flourish.”

If you have any queries please contact me.

Regards,

Jeffrey
0419 233 670

 
Wishing you all the best and until next time,
 
Kind Regards,
 
Jeffrey 
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