Melbourne Property - settling 6.12.13

[MTR]

Hi All

I am buying in Melb/settling on 6 Dec, and I am in Perth.

It is a deceased estate and my concern is that goods etc. will not be removed prior to settlement.

My plan was to hold back $2000 on settlement, real estate agent suggested the same, however my lawyer said that I can not do this in Melb.

Am concerned as I am out of State etc.

Another option is to state I will not settle the property unless xxx
however, I am possibly shooting myself in the foot if I go this way as I will incur interest payments etc.

Help

Thanks
MTR

 

[Peter_Tersteeg]

I'm pretty sure that you do have to settle or you will incur penalty interest. I have had clients hold back some funds from settlement although I'm not sure if it's legal or not. I'd follow your solicitors guidance on this.

 

[MTR]

I'm pretty sure that you do have to settle or you will incur penalty interest. I have had clients hold back some funds from settlement although I'm not sure if it's legal or not. I'd follow your solicitors guidance on this.

I plan to tell lawyer I will be holding funds anyway, regardless. What can happen really, the rubbish goes if they want the $2000, easier than going to court

 

[westminster]

Hi All

I am buying in Melb/settling on 6 Dec, and I am in Perth.

It is a deceased estate and my concern is that goods etc. will not be removed prior to settlement.

My plan was to hold back $2000 on settlement, real estate agent suggested the same, however my lawyer said that I can not do this in Melb.

Am concerned as I am out of State etc.

Another option is to state I will not settle the property unless xxx
however, I am possibly shooting myself in the foot if I go this way as I will incur interest payments etc.

Help

Thanks
MTR

Will you be renting it out?
You could ask your PM to do an inspection for you.
What was in the terms of your contract? Did the sale include all goods, did it state everything to be removed?
Why is your Melbourne trip not coinciding with this so you can inspect yourself? When do you leave Melbourne? In Perth pre settlement inspection can be up to 7 days before settlement and so I did it before flying out to Melbourne. There was some rubbish still there and I put in writing that it was to be removed before settlement. On settlement day my PM inspected to check if the rubbish was gone and it was not but I didn't want to delay settlement so asked the seller to put in writing that they would clear the rubbish within 7 days and I settled based on that.

 

[MTR]

Will you be renting it out?
You could ask your PM to do an inspection for you.
What was in the terms of your contract? Did the sale include all goods, did it state everything to be removed?
Why is your Melbourne trip not coinciding with this so you can inspect yourself? When do you leave Melbourne? In Perth pre settlement inspection can be up to 7 days before settlement and so I did it before flying out to Melbourne. There was some rubbish still there and I put in writing that it was to be removed before settlement. On settlement day my PM inspected to check if the rubbish was gone and it was not but I didn't want to delay settlement so asked the seller to put in writing that they would clear the rubbish within 7 days and I settled based on that.

PM to view prior to settlement, yes was also considering this.

I did not place it in the contract as in Perth we can hold money back, kicking myself now.

 

[Tigerboy]

MTR if you try to hold the $2000 and the vendors do not accept, they can serve you with a recission notice. This will cost you legal fees and interest, and then it will tie you into a 14 day settlement. If you then do not settle within 14 days, your contract will be at an end, and the vendors can sue you for 10% of the purchase price, legals, ,keep the deposit and any other loss.

 

[MTR]

Thanks Tigerboy

Just spoke to my lawyer, he advised take photos of the property which I will this weekend and on Monday he will be placing the seller on notice that we will be holding funds back if goods are not removed prior to settlement.

He also said 9 times out of 10 they address the issue, will see what happens.
Lawyer seems to think this is a good strategy, gone the other way now.

Cheers
MTR

 

[westminster]

PM to view prior to settlement, yes was also considering this.

I did not place it in the contract as in Perth we can hold money back, kicking myself now.

I have never held money back, so it probably wouldn't have even crossed my mind.

I tend to rely more on the contract to manage it.

 

[MTR]

Hi WM
I have held money back in Perth.

Am viewing the property this week and will be organising my PM to view 1 day prior to settlement. I think it will all pan out OK.

Cheers
MTR

 

[MTR]

Just an update, viewed the property w/end gone, the seller has removed almost everything so now no need to panic. Looking good to settle on 6 Dec.

WM
Apparently my settlement agent in Perth mentioned that the laws have changed and in Perth you can no longer hold funds back after settlement. In future will be managing this closer

 

[westminster]

Good news that all is going to plan.