Latest "Clayton’s" Finanace Approval Letter

Posted on June 15, 2008 by | 3 Comments

Consumer Alert!


Tim O'Dwyer M.A., LL.Bby Tim O’Dwyer M.A., LL.B
Solicitor
Consumer Advocate
watchdog@argonautlegal.com.au

Real Estate Encyclopedia



 


This latest “Clayton’s” finance approval letter is hot off my fax machine.


Last year I reported on an upbeat broker’s keenness to show me that my clients’ finance had been “approved” – by way of a copy of a letter from the lending bank confirming that the loan application had been “Unconditionally Approved.” (see: Clayton’s Finance Approval (The Approval You Have When You Don’t Have Approval)).


Responsible conveyancing solicitors warn their buyer clients not to get too excited about such Clayton’s approvals,  and to hold off on notifying finance approval to their sellers until they see all the lender’s terms and conditions – and are satisfied with the total deal.


Hot from my office fax machine, is a recent and not very different Clayton’s finance approval letter headed “Unconditionally Approved”. Needless to say, my clients will be advised not to make their purchase contract “unconditional” as to finance until they receive, consider and accept the lender’s “formal offer” with “ALL the terms and conditions of the loan”.  Follow the link to read the letter advising “Unconditionally Approved”.


More about “Latest ‘Clayton’s’ Finanace Approval Letter”…


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3 Comments

  • And just recently I had a client “cool off” after I advised her that the estate agent was wrong when he told her she didn’t need a finance condition. According to the helpful estate agent: “…if you’ve got pre-approval you don’t need a finance condition”!

  • Here’s one we received from ANZ only yesterday! Note the final two paragraphs: http://lawyersconveyancing.com.au/downloads/anz_finance-approval.pdf

  • http:// says:

    Re the “helpful” estate agent – I’ve been told the same thing. Estate agent’s eyes light up when they hear the words “first home buyer”, and they are ever-so-knowledgeable and helpful…right up until I tell them that I’m a legal practitioner. The same estate agent told me (last year) that she had never heard of a Body Corporate Certificate, and that it didn’t legally need to be in the Section 32 anyway. I feel sorry for the majority of first home owners who don’t have legal training, and who rely on the real estate agent’s advice.

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