Common use of BOND ORIGINATOR Clause in Contracts

BOND ORIGINATOR. In the interest of obtaining bond approval as soon as possible, the Purchaser will, where this Agreement is subject to the Purchaser obtaining mortgage finance, use the services of Elect Property Trust No 7 t/a Combined Finance (“Combined Finance”) as a mortgage originator, and will forward all documents required by Combined Finance for the submission of a mortgage bond application with the major banks. The Seller will release the Purchaser’s contact details and the signed Agreement to Combined Finance as part of the bond approval process. The Purchaser will then be contacted by Combined Finance to obtain further required information. Should the Purchaser obtain a bond other than through the services of Combined Finance, then the Purchaser shall pay a penalty which is 1% (one per cent) of the purchase price before transfer and on demand by the Seller. In the case of the Purchaser entering into a building agreement as part of the purchase, the 1% penalty will be calculated on the erf price and the building price taken together. No penalty will be payable by the Purchaser where Combined Finance has failed to obtain a mortgage bond for the Purchaser on terms acceptable to it. The Seller may upon request from the Purchaser waive the Purchaser’s obligation to use Combined Finance in instances where it is in the Seller’s opinion reasonable to do so, such as in the case of private bank clients who cannot obtain bonds by use of mortgage originators.