Settlement didn't happen - PropertyInvesting.com

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Sundance
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@sundance
Join Date: 2012
Post Count: 57
March 28, 2013 - 7:38 am
We are selling a block of land in Qld. (Standard contract).
Settlement was originally scheduled for 8th April, however, last week our conveyancer contacted us saying that the buyers were requesting early settlement which we agreed to. It was supposed to happen today but at the last minute the purchasers were still having finance problems and weren't able to settle. They are now asking for settlement on the original date – 8th April.
I have concerns that they are going to pull out. Since the contract was signed we've had further interest in the property. What are the consequences of the purchaser pulling out?
Cheers,
Sundance
Terryw
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@terryw
Join Date: 2001
Post Count: 16,213
March 28, 2013 - 7:55 am
Havea read of the contract. You might be able to terminate and keep their deposit, and then resell at a higher amount. Did you get the full 10%?
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
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Jamie Moore
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@jamie-m
Join Date: 2010
Post Count: 5,069
March 28, 2013 - 7:56 am
Hiya Sundance
I hope things are going well.
I'm not a legal person but I'd assume that they'd have to forfeit the deposit to you if they're unable to proceed with the purchase.
There's heaps of reasons why settlements are delayed – and it's usually due to minor issues that delay it by a few days rather than major issues that stop it from proceeding at all.
It's also the eve of a long weekend, so that could have been a factor.
Cheers
Jamie
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Freckle
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@freckle
Join Date: 2012
Post Count: 1,680
March 28, 2013 - 8:06 am
Correct me if I'm wrong but I was always under the impression that you could write contingency contracts. So a second contract would become live when the first contract defaulted. If the first contract succeeds the second or contingency contracts become moot.
Terryw
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@terryw
Join Date: 2001
Post Count: 16,213
March 28, 2013 - 8:27 am
This should be possible Freckle.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
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RPI
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@rpi
Join Date: 2012
Post Count: 308
March 28, 2013 - 8:36 am
Hi
We had 2 of these this week although it was seller who wouldn’t settle.
If they dont settle
A notice to complete is served giving them a reasonable time ( 7 days) to settle.
If they dont can either
Head to court and get order for specific performance or
Deem that they have repudiated contract resell land and they will be responsible for all costs in the resale and any deficiency in price.
If it is qld you would be dealing with a solicitor as conveyancer s are not allowed here.
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Sundance
Participant
@sundance
Join Date: 2012
Post Count: 57
March 28, 2013 - 8:42 am
Hi Terry,
All they've paid is $1k deposit – purchase price of land $220k. Will check out contract.
Thanks for your help
Sundance
Participant
@sundance
Join Date: 2012
Post Count: 57
March 28, 2013 - 8:45 am
Hey there Jamie,
Thanks for that info. Am trying to give them the benefit of the doubt and of course I'm hoping that it's just a hiccup and that settlement will actually take place but just trying to be prepared for all outcomes.
Tamworth property going well for us. You must have your new baby due in a week or so?
Cheers,
Sundance
Sundance
Participant
@sundance
Join Date: 2012
Post Count: 57
March 28, 2013 - 8:48 am
Thanks for that info, much appreciated.
We are dealing with a conveyancer for the sale, not a solicitor. So what you're saying is that if settlement doesn't take place we will need to see a solicitor to take it further?
Cheers,
Sundance
RPI
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@rpi
Join Date: 2012
Post Count: 308
March 28, 2013 - 10:09 am
Conveyancers do not exist in qld. Only solicitors can do conveyancing in qld.
D
RPI | Certus Legal Group / PRO Town Planners
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Sundance
Participant
@sundance
Join Date: 2012
Post Count: 57
March 28, 2013 - 10:23 am
RPI wrote:
Conveyancers do not exist in qld. Only solicitors can do conveyancing in qld. D
We're using Conveyancing Works.
RPI
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@rpi
Join Date: 2012
Post Count: 308
March 28, 2013 - 10:42 am
Part of slater and gordon solicitors.
RPI | Certus Legal Group / PRO Town Planners
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RPI
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@rpi
Join Date: 2012
Post Count: 308
March 28, 2013 - 10:43 am
Part of slater and gordon solicitors.
They will probably charge you to talk about your issue though.
RPI | Certus Legal Group / PRO Town Planners
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Sundance
Participant
@sundance
Join Date: 2012
Post Count: 57
March 28, 2013 - 10:53 am
RPI wrote:
Part of slater and gordon solicitors. They will probably charge you to talk about your issue though.
Ok, didn't realise they were part of Slater & Gordon. My error, just didn't check. Wouldn't have used them had I realised as we've just used S&G in NSW to buy an investment property and I wasn't very impressed with them.
Thanks for your advice, will see what happens in the coming week.
mattsta
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@mattsta
Join Date: 2011
Post Count: 604
March 29, 2013 - 7:51 pm
You should be able to keep their deposit. Check out your contract. I hope everything works out the best for you.