WHAT IS A “MORTGAGE INDEMNITY BOND”?
If Lending Institutions set a limit on the amount that they will allow a person to borrow eg some banks or building society’s will not lend over 70% of the purchase price and if they do they will insist that you take out a mortgage indemnity bond. The premium is a once off payment and works out at approximately 2-3.5% of the difference between the loan and the percentage of the purchase price which the bank will lend. WHEN DO I GET POSSESSION? On the closing date the balance purchase monies are paid over by Bank Draft to the Sellers Solicitors and in return the keys and title documents are handed over and you are entitled to vacant possession. IS THE CLOSING DATE “SACRED”? The closing date may be changed even in the best planned transactions. It is important that the parties co-operate in this respect. For example, there may be a few days delay in the issue of your loan cheque or the seller may want a few extra days to arrange new accommodation. WHAT ARE “SEARCHES”? Searches are essent
