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Agent wanting to see formal loan approval

Discussion in 'The Buying & Selling Process' started by Investiveloper, 16th Aug, 2016.

  1. Investiveloper

    Investiveloper New Member

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    Just in the process of buying first property in VIC. I am more used to NSW processes. Loan was approved & we have sent notice of this to our solicitor who advised the vendor's solicitor that contract is now unconditional. We did an EFT for the remainder of the deposit & sent a screenshot of this to the agent.

    Thought it was a bit strange that the agent is wanting to see the formal loan approval. Is this normal?
    I am a privacy nut so I don't like giving info unnecessarily.

    The vendor had bought another property & was sweating on sale the so I am thinking maybe he wants evidence of the loan approval asap. Or there are still offically 3 days remaining of the finance approval period so maybe he is wanting to remove any possibility of us saying there was an unexpected problem with the finance because we have found something else about the property we don't like.

    Thoughts?
     
  2. jim1964

    jim1964 Well-Known Member Premium Member

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    Pretty common ask in SA.
     
  3. Colin Rice

    Colin Rice Mortgage Broker Australia Wide Business Member

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    Common in WA as well otherwise they have to rely on a verbal and you know how that could go!

    We cc the REA and Settlement Agent into the "congrats" email, after a phone call to client to seek permision to do so.
     
  4. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    None of their business
     
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  5. Colin Rice

    Colin Rice Mortgage Broker Australia Wide Business Member

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    Haha classic lawyer response!
     
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  6. larrylarry

    larrylarry Well-Known Member

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    That's the auto responder.
     
  7. KateAshmor

    KateAshmor Victorian conveyancing lawyer Business Member

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    What Terry said. Unless it's a special condition of the contract (which is extremely unlikely).
     
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  8. Colin Rice

    Colin Rice Mortgage Broker Australia Wide Business Member

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    What are the risks involved in doing so besides client wanting to pull out of the deal, hence calling first and asking permission.

    I see it as an added service to the client, REA and Settlement Agent.
     
  9. D.T.

    D.T. Adelaide Property Manager Business Member

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    I'd say no as well. Your conveyancer can advise theirs that its reached that milestone. Their conveyancer can tell their client or their client's agent if they wish.

    Vendor or vendors agent doesn't need it for anything other than knowing they're getting their commission.
     
  10. Jamie Moore

    Jamie Moore MORTGAGE BROKER - AUSTRALIA WIDE Business Member

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    Not common - but I can't really see any huge issue with providing either (from a privacy point of view) - all the info on the letter is usually captured in the contract of sale (buyers names, address and often bank/loan sought for finance).

    At the end of the day - if you don't feel comfortable with supplying then don't give it to them.

    Cheers

    Jamie
     
  11. JacM

    JacM VIC Buyer's Agent Business Member

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    Unless the agent is suddenly a lawyer or conveyancer that happens to be representing you on this precise purchase, it is not their role to get tangled up in this. You can simply politely say your conveyancer is handling things.

    You have declared unconditional on the finance clause anyway. It is possible it is an agent that doesn't fully understand the legal process and role boundaries. No doubt they are keen to slap you with a request for early deposit release, thus the desire to be "certain" that you are unconditional.

    Once you are under contract you should be doing all your talking through your legal rep (solicitor/conveyancer). The conveyancer will notify the selling agent through the official channels as each milestone is achieved. If you start "communicating" things as well you can actually hinder your conveyancer. Leave it to them.
     
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  12. ellejay

    ellejay Well-Known Member

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    Nope.
     
  13. MrFox

    MrFox Well-Known Member

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    Exactly what JacM said. Email from conveyancer that the contract is unconditional is enough. Congratulations on the purchase.
     
  14. Scott No Mates

    Scott No Mates Well-Known Member

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    Deathly silence....doesn't deserve a response as the vendor can't pull out.
     
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  15. Big Will

    Big Will Well-Known Member

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    Like everyone else has said it is not common and I have never encountered it even when I was a REA.

    Decline their offer all that matters is you have gone unconditional and it doesn't matter if you took a loan or not.

    The only thing that now matters is meeting your obligation on settlement day.
     
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  16. mcarthur

    mcarthur Well-Known Member

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    Agree with most - don't do it. They don't need it. They have no business knowing it. The signed contract is all they need, and that's to pass onto the solicitors.
     
  17. maybellz

    maybellz Member

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    None of their business - we cc the agent in when the seller's solicitor is notified of finance approval.
     
  18. Azazel

    Azazel Well-Known Member

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    I would think the solicitor passing on to the other solicitor that you have formal approval should suffice.
    Can't think of a reason the agent would need to see it.
     
  19. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    There is no legal reason to show it. No advantage but could be a disadvantage as they would know more about you.
     
  20. S.T

    S.T Well-Known Member

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    I'm not selling anything
    Probably wants it so he can take his commission