Contract depended on bank releasing security (WA)

Discussion in 'The Buying & Selling Process' started by smallbuyer, 9th Oct, 2021.

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  1. smallbuyer

    smallbuyer Well-Known Member

    Joined:
    25th Jun, 2015
    Posts:
    405
    Location:
    WA
    So if one is selling a property that has a loan that is crossed with another property (that isnt being sold).
    Settlement obviously depends on the bank releasing the security over the property.
    However what if the bank wants more money than the sale price to release the property?
    It maybe the 2nd property has gone down in value but also is it possible the bank decides it will only do a lower LVR on the remaining property (or wants the whole loan paid in full??!!)
    I assume one can put something in the contract "subject to bank releasing property on terms acceptable to the seller"

    Anyone had any experience with this or ideas?

    Cheers
     
    smallbuyer, 9th Oct, 2021
    #1
  2. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

    Joined:
    14th Jun, 2015
    Posts:
    10,653
    Location:
    Gold Coast (Australia Wide)
    ahh the old cross coll :)

    Most lenders will release on the basis of current val must cover the LVR of the last approval....which is where the ouch can come if the crossed LVR was low

    ta
    rolf
     
    Rolf Latham, 9th Oct, 2021
    #2