Hi,
In relation to long settlements to carry out renovations on property, I have been surprised to discover that it isn’t as straight forward as what I understood in Steve’s first book.
My solicitor was worried about the fact that if renovations are undertaken, then we need to be careful about who is responsible if a contractor is injured while renovating etc.
Furthermore, my bank manager said to be wary as he has known of some vendors who had somehow taken back the property from the buyers after renovations were completed leaving the buyers out in the cold.
Can this actually happen and what are the best ways to avoid this kind of thing from happening? Or are these people just being conservative and over cautious?
Thanks,
Ian
Yes it can happen. What if you sign on a long settlement, your circumstances change and you cannot get a loan to settle? they original owner keeps it, with all new repairs as well as your deposit.
Ask you solicitor how you can get around these problems. Maybe something in the contract, about ownership of renovations and about insurance polices would do.
Terryw
Discover Home Loans
Mortgage Broker
[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
You might also find that a vendor won’t want structural alterations done before you pay. After all if you start, don’t finish and don’t complete your purchase, they’re between a rock and a hard place
Hmmmm,
Thanks guys. Excellent points.
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