Hi all,
Settlement date is today, but we are still waiting on finance to be approved. We have one part approved by one bank, but still waiting on the other bank to approve the difference! Contract was subject to finance. We are not worried about losing out on the property (in hindsight, it is a risky investment)………..so I wonder if we can get out of the contract? Does it become unconditional as the Vendor has not requested an extension on the settlement date?
Appreciate your help/experience!
Nic
Nic, do you actually mean the settlement date is today, or do you mean that this is the last day you can exit the contract due to finance?
Going unconditional would have happened far in advance of the settlement date.
The settlement date was yesterday 18 Nov 09. Got the paper work for one bank which is approved, still waiting on the second bank, no paper work as yet. You wouldn't believe it the solicitor has also mucked up the tranfer of land.
Nic
Sounds like you're having problems Nic.
We had problems with our bank, we had an 8 wk settlement and they were still 2 wks late! (few yrs ago).
Keep a good record of all you emails, phone calls etc.
We were charged interest (10%pa) on the weeks overdue. This doesn't always happen, but at discretion of vendor and their solicitor, can be done.
Our bank eventually (without a court case!) agreed to pay the overdue fee, as it was entirely their fault. ie we had worked with them from the day of contract signing, returned all applications etc promptly and they were disorganised.I would be mentioning that they need to hurry up! In your case though, you have been part of the problem I perceive, as you are still not committed to a particular bank.
Don't wait for this to work out!
Talk to your solicitor about the problem, get the first bank to tell you what day then can settle and get it all happening asap.Good luck!
quickchick
Thanks heaps for your responses! Solicitor has informed us that the settlement date will be extended for another month. The broker is on CBAs back, as verbal approval was given two weeks ago……ANZ is good to go as the LOC is through them.
Thanks again!
Yeah, In a cases like yours, make sure you get your broker to 'harass' your bank to speed up the process.
I had a case like that a while back with the vendor threatening to to take the deposit and void the contract.You should seek legal advise asap. Usually finance clauses have an expiry date well before settlement. If you haven't notified them that finance was not approved then you may be locked in to the purchase. Depending on which state you are in you may have just 14 days to settle if they issue a notice to complete. If you don't settle in the time they can keep the 10% deposit (or sue you for it) and try to resell and sue you for any short fall if they sell it lower. So quickly see your lawyer (not conveyancer) and take some advice.
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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