WA Real Estate Agents

Hi all

Im after some general feedback,or perhaps specific advice on WA land contract law.

In WA the finance clause is at the buyers option - ie the buyer can declare finance as and when they see fit........

WA agents tend to get hissy if they dont get a copy of the finance approval, and some even want fine details on the approval letters such security addresses etc

I have always been loathe to provide ANYTHING to agents anywhere since I am the agent of the borrower - not the seller, but comply when the seller or their settlement agent asks.

Anyone know if this agent thing is a friendly protocol or a "legal need"

ta
rolf
 
i have never once provided a copy of finance approval. having said that i dont rely buy in crazy periods like it is at the moment.

can you pls confirm what you mean by buyers can declare finance as and when they see fit?
 
ah ok i see what you mean.

are you asking if we as buyers are obliged to provide details of preapprovals? im a bit confused about what it is youre asking
 
I have wondered the same as Rolf.

I think it is not necessarily at the option of the buyer. It is a condition of the contract so that condition must be satisfied and the letter does this. I am not sure the buyer can just say, don't worry about it unless they are going to get both parties to sign an amendment to the contract.

I am only guessing at this as I don't like to give the agents this info as a buyer either.
 
From my POV, a contract is pretty much worthless until the buyer agrees to waive the finance clause, or it expires. Loan documentation only comes into it if the buyer exercise the "out" given to them by the finance clause and needs to demonstrate they have made a legitimate effort to get finance, although that's not what we are talking about here?

If the Buyer waives the finance clause then the contract is unconditional as far as finance is concerned. If they haven't waived it yet then the buyer still has the option to walk. I've always seen it as simple as that...?
 
From the deals we've done the agent always seems to ask for the approval letter. Clients usually have this anyway but it is a bit strange since if the client waives the finance clause then there is no way out.
 
the buyer can definitely just waiver the clause without any further documentation required other than the waiver, if that's what you mean?
 
the buyer can definitely just waiver the clause without any further documentation required other than the waiver, if that's what you mean?

Has this been tested in court? I know it is a standard thing done by agents but is it right.

What if I said I waive the clause then at settlement I turn around and say I didn't get finance I am not settling? I can see the need for the letter.

I have been burnt by non settling purchases so think it makes sense to get the waived finance clause signed off or get a letter proving the condition has been satisfied.
 
I have wondered the same as Rolf.

I think it is not necessarily at the option of the buyer. It is a condition of the contract so that condition must be satisfied and the letter does this. I am not sure the buyer can just say, don't worry about it unless they are going to get both parties to sign an amendment to the contract.

I am only guessing at this as I don't like to give the agents this info as a buyer either.

I've bought more than a few WA properties and have never provided evidence of financial approval. Without having the REIWA contract and purple pages to hand, I think that all a buyer has to do is notify the agent of financial approval, not provide evidence of it. The clause is to the buyer's benefit so if they want to waive it then good for them...

Of course if you actually want the answer to this you'll need to dig out the relevant bits from the joint form - I suspect it can be googled...
 
Has this been tested in court? I know it is a standard thing done by agents but is it right.

What if I said I waive the clause then at settlement I turn around and say I didn't get finance I am not settling? I can see the need for the letter.

I have been burnt by non settling purchases so think it makes sense to get the waived finance clause signed off or get a letter proving the condition has been satisfied.

You don't get such a letter with a cash offer, so why would you need one for one with a finance clause? There are mechanisms for seeking compensation for non-settlement - whether they are adequate or not is a separate question but those are the rules for selling properties. Of course if a vendor was seriously concerned about any of this they could just vary the joint form as a special condition to that effect, if the buyer agrees to it.
 
I've bought more than a few WA properties and have never provided evidence of financial approval. Without having the REIWA contract and purple pages to hand, I think that all a buyer has to do is notify the agent of financial approval, not provide evidence of it. The clause is to the buyer's benefit so if they want to waive it then good for them...

Of course if you actually want the answer to this you'll need to dig out the relevant bits from the joint form - I suspect it can be googled...

this is my view too

you are waiving a condition and doing so of your own will. i fail to see why you need to show any form of approval and it certainly has never been my experience either.
 
Hi all

Im after some general feedback,or perhaps specific advice on WA land contract law.

In WA the finance clause is at the buyers option - ie the buyer can declare finance as and when they see fit........

WA agents tend to get hissy if they dont get a copy of the finance approval, and some even want fine details on the approval letters such security addresses etc

I have always been loathe to provide ANYTHING to agents anywhere since I am the agent of the borrower - not the seller, but comply when the seller or their settlement agent asks.

Anyone know if this agent thing is a friendly protocol or a "legal need"

ta
rolf

I believe it is friendly protocol. There is nothing about it in the Joint Form as far as I can tell.
My Settlement Agent provided the Sellers REA with a copy of the Formal Approval. On there was blah blah blah and also listed who the bank's settlement people would be.
The contract is subject to me gaining approval so I proved I had. Conversely if I had failed to gain finance I had to prove that I had tried and failed.
If I had waived it then I need not provide any documentation.
 
Earlier this year I came up against this exact problem.
I had included the finance clause in my offer.
The due date for the clause was up and I didn't have a solid answer from the bank (was going through a broker and he had indicated I was going to get an answer really soon, and it was 99.5% sure to be positive.)
I asked the REA to waive the finance clause and she nearly had a meltdown.

"But you don't have finance...?"

"I will, please waive the clause"

"But I need to see the approval"

"I'm not saying I have satisfied the clause, I'm saying I'd like to waive it"

"But you don't have finance...?"

"If I hadn't included the clause, we wouldn't be having this conversation, right?"

"Right"

"Please waive the clause"

"But I need to see the approval"

Luckily I got the approval letter via email at about 5pm (I think the Clause was meant to expire at 4pm) and we were able to move forward.
 
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