Realmark Urban Licensed Real Estate Agent Roberta Ceresa said people might use terms loosely or interchangeably without strictly adhering to the technical distinctions in everyday conversation, which caused some confusion.
She said an example was the difference between contract not subject to finance and a cash offer.
“It often arises here because both terms indicate a buyer’s commitment to purchasing a property without a finance condition, meaning the buyer is not relying on securing a mortgage to complete the purchase,” Ms Ceresa said.
“While the concepts share similarities, the confusion can be attributed to the nuanced differences in the language used and how they are perceived.
“In a contract not subject to finance, this capacity may come from various sources of funds - such as term deposits, superannuation funds and more - which may necessitate a notice of withdrawal and a potentially extended settlement period, while a cash offer specifically highlights the immediate availability of cash.
“Parties involved may assume the terms mean the same thing without clarifying the specific details of the buyer’s financial capacity.”
According to Ms Ceresa, being proactive in seeking information and clarification is essential.
“The more engaged and informed you are throughout the process, the better equipped you’ll be to make sound decisions,” she said.
“Take the time to understand common real estate terms, especially those related to financing and offers.
“Don’t hesitate to ask your real estate agent, mortgage broker or conveyancer for clarification on any terms you find confusing.
“They are there to assist you and should be willing to explain concepts in a way which makes sense to you.”
For the full article, see the Saturday 10 February edition of The West Real Estate.