So you want to make an unconditional offer on a property without finance lined up? Read this story first...
One sunny Saturday, Jenny purchased her dream property at auction after seeing it advertised in the local paper. On Monday, she went to see her lawyer about the contract and instructed it had been a spur of the moment purchase and she hadn’t organised loan approval.
Jenny’s solicitor indicated that it may be difficult for her to organise her loan approval in time for the 30 day settlement period that she had agreed to and she may have to pay penalty interest for delay. Ultimately, Jenny’s parents had to become guarantors on her loan in order for Jenny to buy the property and the loan was not formally approved until one month after the original settlement date, costing Jenny $1,000.00 in penalty interest payable to the seller for the delayed settlement.
If you don’t have finance confirmed and want to buy at auction (without the ability to make an offer subject to finance), talk to your lawyer beforehand so you understand the potential risks of doing so!
Ask the agent for the contract and vendor's statement and submit it for review here BEFORE you sign!