If you live in the Central Queensland Region, the answer to this question is most likely “Yes”! It is therefore essential that before you place your property on the market for sale that you know what you owe your bank on the mortgage. This is so you know the lowest possible offer you can accept. You don’t want to agree to sell your property for less than what you owe on your mortgage. You will also need to consider the costs of sale too.
If you are selling your property for a price very close to your mortgage payout figure or lower, then you need to protect yourself by adding in a special condition into your contract to make your contract of sale subject to your bank’s consent. This allows you an opportunity after the contract is signed to confirm with your bank that you have enough funds from the sale to pay out your mortgage.
If you do have a shortfall, you can make alternative arrangements with your bank on how you are going to pay this shortfall back to them after the sale.
If you enter into a contract and don’t have this special condition in the contract and do sell your property for less than the mortgage payout figure, the bank can refuse to release the mortgage over the property and you can be in breach of the contract and be liable to be sued by the Buyer.