arandompersonParticipant@arandompersonJoin Date: 2007Post Count: 24
Well after reading all the forums and howtos and government information pamphlets and doing my best to get it right (from the starting point of being a rank beginner), our simple attempt to purchase PPOR #1 fell through 2 weeks from settlement. We haven't lost a lot financially except for some mortgage and converyancer fees, but the hassle was considerable. Well our resources are intact, we are happy and healthy and a bit wiser I think.
In a nutshell:
– got small unit (on its own title) at auction. We were the only bidders, bid up to reserve and it was sold. As it happens the reserve price was the price set by valuation. 65 day settlement
– signed contract of sale with the vendor, with beaming agents standing around congratulating us, etc..
– handed off documentation to mortgage provider and conveyancer/solicitor to go through and sort out for us.
– got insurance and all supporting documentation to mortgage provider and conveyancer/solicitor when requested.
– 6 weeks go by with all appearing to be smooth, all appears to be on track, nobody telling us otherwise.
– about 2 weeks before settlement, get told by conveyancer that the "contract of sale" was never valid as both vendors never signed.. although there are 2 vendors mentioned in the "Section 32", the real estate agent only had one of them present at the auction
– I guess this is where us being naive comes in, but we did hand all the documentation to get checked out, and were informed of the problem before settlement, but it was very late on duing the settlement period so became quite a let down.
– unsigned vendor and/or agent stonewall and filibuster us right up until the day of settlement, continually informally indicating they will sign, but never actually providing any documents to our conveyancer. No valid contract on settlement day, nothing to settle.
Next time I won't give my 28 days notice to landlord before I actually have the settlement "in hand" – lucky our current agent who we rent through were great and understanding, and we can continue to stay where we are. We'll try again in January.. knowing next to make sure all signatures are on the contract.. and that nothing to be taken for granted until settlement has gone through.diclemMember@diclemJoin Date: 2003Post Count: 537
What a horrible experience!
I have bought a few houses and I must say I have never thought to check whether their should be two signatures or not!
I will now.
You'd think one of the more experienced in this drama would have picked up on it earlier though. Firstly the agent, then the conveyancer and the mortgage company.
I suppose you could consider it lucky that this didn't somehow slip through to settlement and then some time later the other owner found out, that would be a real nightmare.
I suspect the vendor was a separated couple trying to sell without the other partner knowing.
Good luck with your next purchase.