All Topics / Help Needed! / Settlement didn’t happen

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  • Profile photo of SundanceSundance
    Participant
    @sundance
    Join Date: 2012
    Post Count: 57

    We are selling a block of land in Qld.  (Standard contract).

    Settlement was originally scheduled for 8th April, however, last week our conveyancer contacted us saying that the buyers were requesting early settlement which we agreed to.  It was supposed to happen today but at the last minute the purchasers were still having finance problems and weren't able to settle.   They are now asking for settlement on the original date – 8th April.

    I have concerns that they are going to pull out.  Since the contract was signed we've had further interest in the property.  What are the consequences of the purchaser pulling out?

    Cheers,

    Sundance

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213

    Havea read of the contract. You might be able to terminate and keep their deposit, and then resell at a higher amount. Did you get the full 10%?

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
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    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of Jamie MooreJamie Moore
    Participant
    @jamie-m
    Join Date: 2010
    Post Count: 5,069

    Hiya Sundance

    I hope things are going well.

    I'm not a legal person but I'd assume that they'd have to forfeit the deposit to you if they're unable to proceed with the purchase.

    There's heaps of reasons why settlements are delayed – and it's usually due to minor issues that delay it by a few days rather than major issues that stop it from proceeding at all.

    It's also the eve of a long weekend, so that could have been a factor.

    Cheers

    Jamie

    Jamie Moore | Pass Go Home Loans Pty Ltd
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    Mortgage Broker assisting clients Australia wide Email: [email protected]

    Profile photo of FreckleFreckle
    Blocked
    @freckle
    Join Date: 2012
    Post Count: 1,680

    Correct me if I'm wrong but I was always under the impression that you could write contingency contracts. So a second contract would become live when the first contract defaulted. If the first contract succeeds the second or contingency contracts become moot. 

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213

    This should be possible Freckle.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
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    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of RPIRPI
    Participant
    @rpi
    Join Date: 2012
    Post Count: 308

    Hi
    We had 2 of these this week although it was seller who wouldn’t settle.
    If they dont settle

    A notice to complete is served giving them a reasonable time ( 7 days) to settle.

    If they dont can either
    Head to court and get order for specific performance or
    Deem that they have repudiated contract resell land and they will be responsible for all costs in the resale and any deficiency in price.

    If it is qld you would be dealing with a solicitor as conveyancer s are not allowed here.

    RPI | Certus Legal Group / PRO Town Planners
    http://www.certuslegal.com.au
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    Property Lawyer & Town Planner

    Profile photo of SundanceSundance
    Participant
    @sundance
    Join Date: 2012
    Post Count: 57

    Hi Terry,

    All they've paid is $1k deposit – purchase price of land $220k.   Will check out contract.

    Thanks for your help :)

    Profile photo of SundanceSundance
    Participant
    @sundance
    Join Date: 2012
    Post Count: 57

    Hey there Jamie,

    Thanks for that info.  Am trying to give them the benefit of the doubt and of course I'm hoping that it's just a hiccup and that settlement will actually take place but just trying to be prepared for all outcomes.

    Tamworth property going well for us.  You must have your new baby due in a week or so?

    Cheers,

    Sundance

    Profile photo of SundanceSundance
    Participant
    @sundance
    Join Date: 2012
    Post Count: 57

    Thanks for that info, much appreciated.

    We are dealing with a conveyancer for the sale, not a solicitor.  So what  you're saying is that if settlement doesn't take place we will need to see a solicitor to take it further?

    Cheers,

    Sundance

    Profile photo of RPIRPI
    Participant
    @rpi
    Join Date: 2012
    Post Count: 308

    Conveyancers do not exist in qld. Only solicitors can do conveyancing in qld.

    D

    RPI | Certus Legal Group / PRO Town Planners
    http://www.certuslegal.com.au
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    Property Lawyer & Town Planner

    Profile photo of SundanceSundance
    Participant
    @sundance
    Join Date: 2012
    Post Count: 57
    RPI wrote:
    Conveyancers do not exist in qld. Only solicitors can do conveyancing in qld. D

    We're using Conveyancing Works.

    Profile photo of RPIRPI
    Participant
    @rpi
    Join Date: 2012
    Post Count: 308

    Part of slater and gordon solicitors.

    RPI | Certus Legal Group / PRO Town Planners
    http://www.certuslegal.com.au
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    Property Lawyer & Town Planner

    Profile photo of RPIRPI
    Participant
    @rpi
    Join Date: 2012
    Post Count: 308

    Part of slater and gordon solicitors.

    They will probably charge you to talk about your issue though.

    RPI | Certus Legal Group / PRO Town Planners
    http://www.certuslegal.com.au
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    Property Lawyer & Town Planner

    Profile photo of SundanceSundance
    Participant
    @sundance
    Join Date: 2012
    Post Count: 57
    RPI wrote:
    Part of slater and gordon solicitors. They will probably charge you to talk about your issue though.

    Ok, didn't realise they were part of Slater & Gordon.  My error, just didn't check.  Wouldn't have used them had I realised as we've just used S&G in NSW to buy an investment property and I wasn't very impressed with them.

    Thanks for your advice, will see what happens in the coming week.

    smiley

    Profile photo of mattstamattsta
    Participant
    @mattsta
    Join Date: 2011
    Post Count: 604

    You should be able to keep their deposit. Check out your contract. I hope everything works out the best for you. 

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