Buying a new home can be done safely with the help of a good lawyer. It is important to understand the commitment being made on a property before you sign on the dotted line.
What if my loan doesn’t get extended
It is important to take note of the maximum length in time your home loan approval is valid for. Some banks maybe able to extend the approval for up to a year for a new build. However once you have the final letter of offer from the bank, it is important to understand that the lender has no obligation to extend the loan past the expiry date.
The sunset clause
A sunset clause can put a deadline on offer, enabling you to be able to cancel the contract at the sunset date. This means that you can get your deposit back and time the offer with your home loan expiry.
Is my deposit safe?
Not always, as most contracts are worded to enable the seller to access the deposit after unconditional date. However you can insist wording the contract to have the deposit kept with the lawyer. Ideally in an interest bearing account.
Other areas
It is also good to understand how much the developer can change the property by the end. Sometime the end result can look different to the pictures on display at point of sale. It all comes down to the wording of the agreement you sign which can be clarified with the assistance of a good lawyer.
