What happens in the situation where the purchase of a property is likely to be completed a couple of months after the expiry date of the deposit bond.
I realise that they can be extended, what are the implications if it is not.
James
I think that is the vendor’s problem. Just stay quiet about it, or you will be made to get a new bond or pay the deposit.
Terryw
Discover Home Loans
North Sydney
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
I agree with Terry. That’s up to their solicitors to keep on top of.
However, make sure that you’ll be prepared to go if they do bring it up. Not sure how much notice they’ll give you, or what the ramifications are in the contract.
Maybe you should ask your solicitor what it says (if anything) in the contract.
Cheers
MelTHe vendor solictor will issue a Notice to complete, failing that they you can lose your deposit which is some percentage..or all of it?.
Your solictor should be able to give you more of a detail explaination as there are clauses and circumstances in the contract u have, so different from what I have gone through.What I learnt yesterday, I know better for tommorrow – Dean
Kenshin, are you talking about settlement, or when settlement is still a couple of months away, but the deposit bond you got expires before that date?
Cheers
MelI fully misinterepted the original post, my apologies.
I would recommend chattin with ur solictor on what implications an expired deposit bond will have on a contract sale in case something does happen..
I did read somewhere that some1 lost their IP b4 they could finalised the purchase because their deposit bond expired.. dont know how that works.. maybe some1 can fill me up with some knowledge [
]melbear – thanks for the correction [
]What I learnt yesterday, I know better for tommorrow – Dean
I think if the deposit bond has expired, it means that the construction has drawn out and they have gone over the sunset clause. (usually bonds need to be as long as the sunset clause). this means that either parter can probably rescind the contract, so maybe you had better check your contract and/or talk to your solicitor. If the property has gone up in value, then the vendor could cancel your contract to resell at a higher price.
Terryw
Discover Home Loans
North Sydney
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
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