Ms R reduces her offer on the property
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As a result of the termite report, Ms R reduced her offer to the vendor by $5,000. Her reduced offer was accepted and she asked the bank if she could use the extra $5,000 to address the white ant problem and also to make good items listed on a Housing Industry Association (“HIA”) order. She intended to complete the repairs with the help of her parents.
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Bank undertakes its own valuation
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Ms R complained to BFSO that her request to the bank to use the extra $5,000 for repairs prompted the bank to carry out its own valuation on the property with the result that it withdrew its loan offer. She said that she could no longer fulfil the sale contract and it was only six days before settlement.
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Dispute resolved after referral to the bank
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The dispute was referred to the bank which negotiated directly with Ms R to resolve the dispute. It transpired that Ms R was able to obtain finance from an alternative lender prior to settlement, but incurred the cost of lender’s mortgage insurance. The bank refunded Ms R the cost of her initial application fee, the cost of the lender’s mortgage insurance with the new lender and it offered her $500 in compensation for the distress and inconvenience caused by the situation.
The bank provided BFSO with a copy of a signed acceptance by Ms R to a refund of $3,066.22 in full and final settlement of the dispute.
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