House is not completed as per contract
- Thread starter IndexFund
- Start date
You mean call CBA directly? Who should I talk to though?
The girl who picks up at the call centre! I'm sure she can help you out. lol
I doubt you'd get far trying to talk to CBA about it directly. All sorts of stuff would and need to happen between themselves and the vendor first before they would sell it out from under him.
yes why does he have to pay 2k-3k for the title?
GG Jr.
GG Jr.
How so?
The vendor did not get access to my $29,700 cos I did not release it to him as yet.
Frankly, now that I know of his mortgage situation, I dont want him anywhere near my deposit cos he could take it and make it very hard to get it back later.
No the deposit has nothing to do with it.
Ask your solicitor 2 questions.
1. Is the reason the sale cant go through because there is a local council caveat on the property for unpaid rates.
2. If the answer to question 1 is "yes", can a portion of funds at settlement be directed to the local council so that the caveat can be cleared.
Ask your solicitor 2 questions.
1. Is the reason the sale cant go through because there is a local council caveat on the property for unpaid rates.
2. If the answer to question 1 is "yes", can a portion of funds at settlement be directed to the local council so that the caveat can be cleared.
Where would those funds come from? My purchase price? Wouldnt the vendor's lender not agree to it as they want to get back as much as they can?
Yes. If it is done properly caveat will be cleared as completion occurs. The 2 processes will occur simultaneously.
Its not for anyone on this board to make assumptions about what a bank will or will not do.
Are you using a conveyancer? It certainly seems that whoever is handling the purchase on your behalf is not acting in a very sophisticated / proactive manner.
It just means at settlement additional cheques have to be drawn.
If a settlement goes through for $300K, then the cheque situation may look like this:
Pay out the first mortgage $200K
Pay out second mortgage $35K
Pay out vendor - balance $65K
In your instance you are saying that the Mortgage with CBA is greater than the amount you are settling with; so it's a simple 1 cheque scenario - pay all to the bank. What is being suggested is that you reduce the cheque to the CBA and pay out the council rates.
Usually you will wear a charge for each cheque being drawn by the finance provider you have chosen. I'd suggest that your cheques were drawn in advance of the scheduled settlement date, so you may even incur a small fee to have the drawn cheque ammended (or cancelled and reissued). I think our cheques cost $20 each to have them raised, last time round we had 5.
I'd ring your solicitor, find out what hasn't been paid - in addition to rates, I'd specifically ask about water, find out the cost of issuing/changing cheques and if it can be done. I think your real issue here is getting the CBA to approve getting less cash; but at the end of the day some cash at settlement is better than none.
Goodluck.
Buddybee
Dear Index Fund
I have read all this thread and you have had excellent advice. I class myself as savvy investor so here is my advice.
Let it go.
From what is said here:
Again WALK AWAY!
You only lose $400 and you could argue that call with your conveyancor as she/he appears to have not done a great job.
The risk I see, and it is very real, is that you lose control of your cash and find MORE issues on title so in effect you have a compromised title. Bank has issues with giving you loan, you cannot move in anyhow until it is resolved, etc...etc... blah blah....issues...more costs....
It is clear this is your first transaction , so believe me, $400 is hardly anything in the scheme of things.
Do the following:
I would be very surprised if your rental Agent was not happy to keep an existing tenant. Less hassle for them and the $5 sweetens the deal.
My two cents, Peter 14.7
I have read all this thread and you have had excellent advice. I class myself as savvy investor so here is my advice.
Let it go.
From what is said here:
- House may or may not be good deal?
- Just a house with no development potential (and not is Sydenham)
- With interest rates going up house is unlikely to be going up
- The more your conveyance digs the more problems you find
- The vendor is dodgy at best and maybe dangerous at worst!
- It looks like (if you cancel) the Bank will repossess anyhow so wait and possible get it for at least $30k less
- And, what started it all, it needs painting!
Again WALK AWAY!
You only lose $400 and you could argue that call with your conveyancor as she/he appears to have not done a great job.
The risk I see, and it is very real, is that you lose control of your cash and find MORE issues on title so in effect you have a compromised title. Bank has issues with giving you loan, you cannot move in anyhow until it is resolved, etc...etc... blah blah....issues...more costs....
It is clear this is your first transaction , so believe me, $400 is hardly anything in the scheme of things.
Do the following:
- End it now
- Tell your rental agent I want to stay and offer $5 a week extra
- Contact CBA in writing and register you interest in the property should they come in possession and want to cut a deal quick
- Sit back and wait
- Watch market, look around etc.
I would be very surprised if your rental Agent was not happy to keep an existing tenant. Less hassle for them and the $5 sweetens the deal.
My two cents, Peter 14.7
Hi IndexFund,
Just to add to Peter's post, I'll give you my opinion as I personally inspected this property when it first hit the market. I am assuming this house in Sydenham is on a street starting with the letter "S" and the listing agent starts with "B" - ignore this if I am wrong.
My observations were as follows:
1) The owner does look shifty big time. He was nice in that he invited me into the house while I was waiting for the agent to arrive and he showed me around, but the pack of lies he was throwing at me I could see straight through.
2) It appeared to me that there had been some serious water damage, which is why the walls were all patched up and not painted. Up stairs in the rumpus room you will notice that there is a tap which is now blocked off. He told me that a hair dresser lived their previously who used to work from the room upstairs. I suspect that a pipe has burst or someone has left the tap running, causing all the damage to the walls below.
3) From memory, the balcony on the side appears to be home made and not very sturdy. I doubt this is safe or legal!
4) The upper level is an extention so this house was originally a single storey. Could it be a dodgy extention?
When I questioned the vendor about the damage, he said that he was renting the house to a friend who then trashed the place. Oh, he was walking around smoking and drinking his VB when I was there too!
I too was told that the vendor would be repainting the walls. Even if the walls were painted, who knows what the underlying damage is (thats if it was water damage). It appears to be a rough patch job to me but I'm no builder so don't take my word for it.
Finally, I was talking to the agent about this property a few weeks ago and asked if the damage had been repaired. I was told that it was. Lesson = don't believe everything agents say!
At $300k it may still be a good buy but that is your call to make. I didn't make this post to put you off buying, just wanted to give you my opinion on the property (in case you weren't aware of the possible water damage).
Best of luck.
Cheers,
Ozi
Hi IndexFund,
Just to add to Peter's post, I'll give you my opinion as I personally inspected this property when it first hit the market. I am assuming this house in Sydenham is on a street starting with the letter "S" and the listing agent starts with "B" - ignore this if I am wrong.
My observations were as follows:
1) The owner does look shifty big time. He was nice in that he invited me into the house while I was waiting for the agent to arrive and he showed me around, but the pack of lies he was throwing at me I could see straight through.
2) It appeared to me that there had been some serious water damage, which is why the walls were all patched up and not painted. Up stairs in the rumpus room you will notice that there is a tap which is now blocked off. He told me that a hair dresser lived their previously who used to work from the room upstairs. I suspect that a pipe has burst or someone has left the tap running, causing all the damage to the walls below.
3) From memory, the balcony on the side appears to be home made and not very sturdy. I doubt this is safe or legal!
4) The upper level is an extention so this house was originally a single storey. Could it be a dodgy extention?
When I questioned the vendor about the damage, he said that he was renting the house to a friend who then trashed the place. Oh, he was walking around smoking and drinking his VB when I was there too!
I too was told that the vendor would be repainting the walls. Even if the walls were painted, who knows what the underlying damage is (thats if it was water damage). It appears to be a rough patch job to me but I'm no builder so don't take my word for it.
Finally, I was talking to the agent about this property a few weeks ago and asked if the damage had been repaired. I was told that it was. Lesson = don't believe everything agents say!
At $300k it may still be a good buy but that is your call to make. I didn't make this post to put you off buying, just wanted to give you my opinion on the property (in case you weren't aware of the possible water damage).
Best of luck.
Cheers,
Ozi
Thanks Ozi. From your description, I think the property is probably worth around 260k. Sounds like major work needs to be done to the house to correct some structural issues.
