I think you should find out where that money is located asap. Who did you pay it to and what does the contract say about the deposit.

You may be able to terminate the contract, or rescind it, and get back that deposit.. Have a close read of the whole contract and see what you can find.

That may cost more than the licence fee!

Did the lawyer explain about priorities and that your interest would be secondary to any mortgage? You might have a claim against the lawyer – don't worry this is what they are insured for.

I assume both mortgages were in place before you placed your caveat? (otherwise they probably couldn't have mortgaged). Di you lodge a caveat immediately on…[Read more]

And, did you seek legal advice before you entered this agreement?

Sorry Freddie. Don't think you can do much. Probably best to seek legal advice, and take it from there.

Maybe best to stop paying the vendor now. Write to them and ask them to provide a pay out figure and ask them how much is owing secured on the property – not that they will tell you the truth.

When entering into an agreement to purchase you would do a title search and find out that the property is mortgaged.

Doesn't sound good.

The bank will call in the guarantee for the business – if they actually owe money, it could be undrawn (unlikely!)

If the business failed then they are likely to be in trouble. Even if the are not pursued for company debts they will be for this loan. They are probably unlikely to have the cash to pay for it. Depending on…[Read more]

my reply here https://www.propertyinvesting.com/forums/legal-accounting/4346019#comment-271397

The vendors won't stop settlement, but their lenders will if they have used the property as security with a mortgage.

A mortgage lodged before a caveat usually takes priority.

Is the property owned b the company?

Its very hard to coordinate a group of people.

Many things to consider with one of the major ones being liability – if one stops paying the others will need to chip in or all go down together.

Thanks Plummer.

Very good points you make.

You have to be careful with putting money into a LOC for tax reasons.

I would sugest you change the LOC to an interest only loan, at a lower interest rate, with a 100% offset account. Pay all rent and wages into the offset. This will save more interest and you have the flexibility of paying off the loan at any time in the future.

In that case you would want to pay off your debt on the main residence first prior to the LOC as this wouldn't be deductible.

PN,

Best to email me and I will give you their number privately rather than put it on the forum.

terry@terryw.com.au

PropertyNovice wrote:
Hi Terry,

I'm based in Sydney. I have been paying my accountant $950 for the SMSF, which is sitting in a bank account for cash at the moment, and the audit report costs me $250.

I'm not sure if these fees are right, but the work doesn't seem complicated to me. For the tax returns, what I need to provide my accountant is…[Read more]

Yes, a clause like that could be added to the standard contract. If it is not in the contract then it won't be enforceable.. But you should use a solicitor to draft it/ You should also note that the builder may not agree to it.

Gazza21 wrote:
Additionally, do you need a 20% deposit when purchasing through a trust or can you get away with 10%+ and LMI?

Its possible to get 90%

Let me expand on my post above.

Some things to consider when setting up a trust:

Consider the following
type of trust
terms of deed
classes of beneficiaries
How to contribute capital to trust
who should be trustee
control of trustee
who should be director of trustee
number of shareholders of trustee company
who should be shareholders of…[Read more]

I also found that when typing on my iphone, in reply to a message on this forum, you type away and then it takes about 2 secs for the characters to appear on the screen. Doesn't seem to happen with other forums. And then the curser jumps around – which could be due to my fat fingers.

Another tip,

When sending out the automatic emails to notify that someone has replied to a thread I would prefer it if the link to the thread is at the top of the email. Otherwise I have to scroll down to find it

thanks