Something very relevant right now is the impact on negotiation of contract terms during COVID.

The biggest effect from COVID has been on the time that banks are taking to approve finance and how that is holding up and even losing contracts.

Why the extended processing time?

We're finding that the processing time to get finance approved and then for the banks to be ready to settle is taking longer. This is partly because the banking Royal Commission has made more obligations on the banks to look at who they're lending money to, but COVID in particular has changed things. 

Some of the banks used to process offshore pre COVID. That all has come back on shore with a lot of workers working from home. Therefore, a request for further information where they may have responded in 24 or 48 hours is sometimes taking a week.

What can you do?

We highly recommend that you get pre approval before you put in an offer. When we say pre approval, just don't have a talk to the bank teller over the counter. Go through the process of putting in your financials to the bank, so that you're pre approved to the stage where it's only subject to the valuation of the property you're buying.

Also try for a 21 days finance clause. If you've got pre approval and you can only get 14 days, you've got a better chance. 80% of the conveyancing matters we're doing at the moment are needing requests on extensions for the finance clause because the banks just aren't able to process in time.

There is a risk, especially in Queensland, where time is of the essence. You do run a risk of losing your deposit if you're not ready to go because there is no obligation to extend your finance request.

Conveyancing Assistance

If you've got a conveyancing matter, you need to talk to someone urgently.

Please call us on our mobile, 7 day a week, conveyancing hotline.

We look forward to hearing from you.