All Topics / Legal & Accounting / Property Developer backing out of contract.

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  • Profile photo of glaucusglaucus
    Participant
    @glaucus
    Join Date: 2008
    Post Count: 14

    Looking for options on where these friends stand on this case..

    Developer XcelProperty have exchanged contracts on these 4 blocks which they are advertising expressions of interest on their web site.
    Contracts exchanged in March with a 6month settlement. Now settlement has passed, bank valuer came out and costed the properties a lot less than the March valuation and apparently now the said developers now trading as Clarwell Property Pty Ltd out of a Surry Hills office in Sydney.

    The main man was obviously wrong when he suggested this

    So, for those of you who know the law here, do these four home owners just take the deposit (5%) and stay put?
    How do the get caveat lifted so other developers with finance can be approached?

    • This topic was modified 4 years, 6 months ago by Profile photo of glaucus glaucus.
    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213

    If a purchaser has exchanged contracts but cannot settle the vendors should seek legal advice about issuing a notice to complete and then terminating the contract and keeping the deposit. They should have made sure there were persoonal guarantees in the contract and that the full 10% deposit would be owing. Once the contract is terminated write to the purchasers and tell them to remove the caveat within x days as they will not have any entitlement to lodge a caveat at that point.

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

    Lawyer, Mortgage Broker and Tax Advisor (Aust wide) http://propertytaxbook.com.au/

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