OILING THE CONVEYANCING WHEELS
Bridging finance, in relation to the conveyancing process, is a very simple concept. Many parties to property transactions, be they transferring, registering further bonds or switching bonds, need access to cash before registration is effected.
Bridging Finance accordingly allows, for example, purchasers to acquire enough funds to cover transfer duty and conveyancing costs thereby allowing the transfer to proceed, while sellers can obtain amounts to pay outstanding rates or obtain an advance on the proceeds of the sale to put down a deposit on another property.
Benefits for clients
Sellers, buyers and borrowers are given immediate cash. This enables sellers to:
- put down a deposit on a new property;
- pay expenses associated with selling their home;
- pay for building improvements or moving costs; and
- settle arrear rates or tax.
Buyers especially, having embarked on the acquisition of a new property, can be cash strapped and do not have sufficient money to pay transfer duty and the other costs associated with transfer. Bridging finance offers a solution.
Estate agents are usually required to wait for their commission generated on the sale of a property until the transaction is registered. Bridging finance can advance a high percentage of such commissions.
Benefits for conveyancers
Bridging finance speeds up turnaround times by 'oiling the wheels' of the registration process by ensuring that cash is available to pay necessary expenses. It is a part of the value that conveyancers can add to their service delivery.
How much can one have access to?
One can be advanced up to 80% of the equity of the sale or bond proceeds.
Cash on Demand website