You want to use the sale proceeds from your sold property to help cover the costs of purchasing your new property. But property transfers can be complicated and it can take months before you see the money. But do not stress. You can bridge the financial gap when you have sold your home and need a cash advance on property sale proceeds with property bridging loans. But how does the property sale process work? Let us have a look.
Property Is Sold And Sales Agreement Signed
The first step is that the buyer and the seller must sign a written agreement. After the seller and buyer have signed the Agreement of Sale, other documents must still be signed at the office of the Conveyancer to comply with the formalities in order to affect the registration of the transfer. The buyer must also sign the bond documents at the office of the Conveyancer attending to the registration of the Purchaser’s bond. The Seller pays the costs of registering the bond and the costs of registering the transfer. Once the sales agreement is signed a property bridging loan can help you out financially while you are waiting on your money. This is also referred to as a property term loan or sellers advance loan.
Handed Over To Conveyancer
To ensure the continued existence of our excellent system of registration, and to protect the rights of the public, the law provides that only qualified Conveyancers having the necessary knowledge, skill, and attention to detail may attend to the transfer of property and related transactions. When all the checks have been made and all the procedures followed by the conveyancer, the new owner can be assured that his or her title to the property cannot be disputed. There are a lot of resources with helpful information that can guide you through the process and be assisted by the helpful staff.
All Suspensive Conditions Met
Selling a property can be a stressful time. While your home may be officially sold, there can be a long delay until you finally receive the proceeds from the sale. Your cash flow may be tight while you wait for the proceeds to come through and you need to pay the deposit on your next property purchase. With a Sellers Advance, you can have access to your funds as soon as your home has been sold. This means that once the purchase price has been secured by your buyer, a sellers proceeds loan may be able to offer you up to 75% of your total nett proceeds (after deducting the bond amount and all costs associated with the sale). Your agreement with the lender will determine the period of your bridging finance repayments. You start to repay the bridge loan when you get the funds, this will include interest and the fees.
Financial Benefits of a Property Sale Loan
There are multiple benefits that come with taking out a property loan. You will have quick access to your sale proceeds. The loan will allow you to pay for your transfer fees, rates, taxes, and conveyancing fees. You can use the money for your new property. If you are an estate agent you can get a commission advance while you are waiting for your money to get transferred!