OfferToPurchase(OTP) - provide suitable guarantee

A

air

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Hi All

Would appreciate your help in below hypothetical situation.

I complete an OTP under my personal name -> Joe Bloggs, the seller accepts the OTP.
I pay a 10% deposit within 10 calendar days. (as per the contract)
From date of acceptance, I have 30 calendar days to furnish the conveyancing attorneys with a suitable bank guarantee for the remaining 90%

Would the bank guarantee need to be in my personal name -> Joe Bloggs, or can it be that of a family member or a cc or a company?

Would the initial contract be null and void if the guarantee is not in my name and would I/we need to complete a new OTP?

cheers for the help mense!
air
 
Last edited:
air said:
Hi All

Would appreciate your help in below hypothetical situation.

I complete an OTP under my personal name -> Joe Bloggs, the seller accepts the OTP.
I pay a 10% deposit within 10 calendar days. (as per the contract)
From date of acceptance, I have 30 calendar days to furnish the conveyancing attorneys with a suitable bank guarantee for the remaining 90%

Would the bank guarantee need to be in my personal name -> Joe Bloggs, or can it be that of a family member or a cc or a company?

Would the initial contract be null and void if the guarantee is not in my name and would I/we need to complete a new OTP?

cheers for the help mense!
air
Click to expand...

Why don't you ask the agent that you used?
 
Is not a bank guarantee in this case just proof from the bank in the form of a letter of acceptance for the loan they will be able to offer you for the total amount and if you are not going for a loan a bank guaranteed cheque for the whole amount?
 
air said:
Would the bank guarantee need to be in my personal name -> Joe Bloggs, or can it be that of a family member or a cc or a company?

Would the initial contract be null and void if the guarantee is not in my name and would I/we need to complete a new OTP?
Click to expand...

It needs to be in the name of the person who is taking ownership of the house, the person who signed the OTP. You will need to sign a new OTP if you want to change the party's involved as it's legal binding agreement between two parties.

It's only null and void if you cannot obtain finance.
 
As long as the guarantee is in favour of the correct person/entity it does not matter who this issuer/backer of the guarantee is. My dad lent me some money when I bought my first house and this was how we did it and there were no issues at all.
 
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