In early January I bought a unit on the Gold Coast at a considerable discount on the provision that the transaction settled on or before the 31st January. For reasons relating to the seller the settlement has been pushed out until this month, however, I have recently read that the Raptis Group went into voluntary administration on January 31st. I have also read Raptis Group has in excess of 90 subsidiary entities, with all assets having been mortgaged to 27 banks and financiers owed in excess of $940M and believe that one of those entities is the seller of this unit on the Gold Coast. Is my investment safe or do I run the risk of losing the property, any monies already paid and/or any benefit promised at settlement?
As Raptis entered into the sale prior to administration, you may have to consult your solicitor with regard to Raptis (or the administrator) being able to terminate the contract.
Generally, the vendor will be obliged to complete the transaction (and the administrator would be seeking the cashflow).
As for your deposit, you will need to enquire whether these monies are held in a statutory REA trust account – if not they have breached their licence obligations (although it may not mean much if they are broke).
Thanks IP, information is much appreciated
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