All Topics / Help Needed! / Settlement date…no funds

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  • Profile photo of deepleaddeeplead
    Member
    @deeplead
    Join Date: 2009
    Post Count: 11

    Hi guys

    I am in the process of selling my first ever house. Look to make a nice profit, bought for 80k sold for 340K. However, as the final settlement date nears, about 7 days away, its starting to look like the buyers are having trouble getting the funds together, they have paid their deposit and the cooling off period is over etc, but where does this leave me if they cant secure funds ? Hope someone can help.

    cheers

    Profile photo of DerekDerek
    Member
    @derek
    Join Date: 2004
    Post Count: 3,544

    Depends on what stage of the settlement process you were up to.

    Best advice is to ring your conveyancer/solicitor and get them to advise you. They have seen the contract and are legally qualified to tell you what your options/obligations are.

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213

    you can probably keep their deposit and sue them for any shortfall on a subsequent sale. Whether you get anymore money out of them will depend if they have any assets.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of deepleaddeeplead
    Member
    @deeplead
    Join Date: 2009
    Post Count: 11

    Well my fears have been realized. Four days out from the final settlement date the buyer says she cant secure funds and needs more time. I have already organised a rental property to live in, paid the bond (big $$$), organised removalists (big $$$), put heaps of my stuff in storage(big $$$) so I'm down to my last $100 for the week and to make matters worse their solicitor won't release the deposit for use. NOT HAPPY!!……..looks like rice and beans for the time being lol

    Profile photo of traolcoladistraolcoladis
    Member
    @traolcoladis
    Join Date: 2010
    Post Count: 19

    You may need to get your conveyancer to write a letter stating that you are prepared to extend another 4 weeks to them on the proviso that they release the deposit to you so you can make use of it to find accomodation. I believe that if they default that you either keep 2% of total sale price or the full deposit.

    Have a look on your section 32 or the contract of sale. It should have the information on it. I believe that it refers to reasonable costs.

    I believe that you may be able to get them to pay costs associated with obtain bridging finance if you were looking to buy another property.

    Any interest on the property from the due settlement date on any mortgage you have for the property.
    Accomodation expenses incurred by you.
    Additional costs incurred by you for further contact between you and your conveyancer.
    Costs incurred by a 3rd party for any delay in the completion of a vendors (your) purchase.
    There may also be a fee for allowing them extra time on each extension offered to them.

    Your section 32 may be different. Check with your conveyancer.

    Profile photo of Scott No MatesScott No Mates
    Participant
    @scott-no-mates
    Join Date: 2005
    Post Count: 3,856

    The time for completion has expired, your conveyancer must write to the purchaser's lawyers for notice to complete. Seek further advice as to the situation should they default upon this time but repudiation may be in order.

    Profile photo of DerekDerek
    Member
    @derek
    Join Date: 2004
    Post Count: 3,544

    Was the settlement process past the unconditional stage?

    Profile photo of deepleaddeeplead
    Member
    @deeplead
    Join Date: 2009
    Post Count: 11

    Im unaware what the unconditional stage means, the 5 day cooling off period passed about 5 weeks agao and the final settlement days was to be this Wednesday. Apparantly the woman who is buying is awaiting retirement funds to come through, maybe she should have organised a bridging loan or something.

    Profile photo of michaelandre70michaelandre70
    Member
    @michaelandre70
    Join Date: 2009
    Post Count: 34

    The lady failing to get her retirement fund and putting you in a bad shape. I am sure she did not anticipate it to happen, neither have you. I do agree with you that she should have had an alternative to make your payment.

    I would agree with the advice by deeplead and Scott.

    Hope things end up well for you.

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213

    This is why it is a good reason to use a lawyer rather than a conveyancer. I would probably issue a notice to complete within 14 days and then wait and see what happens. You may have to put it back on the market and keep their deposit and sue for damages.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

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