When a seller concludes the sale of their immovable property they are required to wait until settlement to occur before they will receive the equity realised from the sale of their property. Prevance has introduced the Seller Equity Advance that eliminates this waiting period and allows the Vendor to receive their equity realised immediately after the conclusion of the sale, and once all suspensive conditions of the sale have been resolved. The seller can obtain the advance any time prior to settlement and is able to even draw down on their facility during the bridging period if all the funds are not required immediately. What is the Equity Realised? The equity realised from the sale of the property is the profit or capital appreciation that the seller has made, and is determined by deducting all expenses and liabilities pertaining to the property from the sale price.

Typically these expenses and liabilities would be as follows, however there may be some that are not applicable and additional expenses and liabilities that do not appear below:

• Existing mortgage;
• Estate agents commission;
• Rates and taxes;
• Body corporate levies.
  

Why would a Seller Equity Advance be Required?

Every seller circumstances are unique and the advance can be obtained for any purpose that the seller requires. Through experience we typically see the following reasons for a Seller to obtain an advance:

• To settle the deposit requirement on a property that is being purchased;
• To settle the other costs on a property that is being purchased;
• To effect a renovation or repairs on the property being sold as required by the agreement of sale;
• To take advantage of immediate investment or business opportunities;
• To settle urgent creditors, credit cards and bills;