PROPERTY BRIDGING

WHAT DO WE OFFER?

Property bridging finance is an opportunity for sellers and estate agents to access the funds generated from the sale of a property before the transfer is completed. Usually, these funds are only available once the property has been registered as transferred at the Deeds Office, and this conveyancing process can be lengthy. Property bridging finance means that the seller or estate agent can have access to a portion of the funds sooner, with the help of a bridging finance institution.

HOW DOES IT WORK?

Having access to property bridging finance can benefit both the seller and the estate agent who handled the transaction.

Sellers who require a clearance certificate from their local municipality for arrear municipal bills can use property bridging finance to pay the arrears, thus expediting the sale of the property.

Sellers can also use property bridging finance to realise some of the profits from the sale of the property sooner, and thus use the funds to invest elsewhere, settle bills/debt or purchase another property, etc.

Estate agents can, once a sale is ready to be lodged for transfer, apply for property bridging finance in order to receive a portion of their commission sooner. Usually, commission is only paid out on date of transfer, which can be a lengthy waiting period for those in need of the funds.

THE BRIDGING PROCESS
WHAT ARE THE BENEFITS?

There are a number of benefits to both seller and estate agent when making use of property bridging finance:

  • Access to funds (part of the profit or commission) within a much shorter period of time.
  • Ability to use funds for investment, to settle bills/debt or make other purchases.
  • Improved financial planning.
  • Improved financial management.
  • More stable cash flow.
  • Improved ability to maintain healthy credit record if funds are required for settling debt or bills.
WHAT ARE THE CONDITIONS?
  • Vital and the Agency/Agent have a discounting agreement in place.
  • Finance for the sale of property has been secured.
  • All suspensive conditions pertaining to the sale have been complied with.
  • Letter of undertaking received from the attorneys.

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