But wouldn't this just be attempting to use lawyers to weasel out of a binding contract on the basis of almost-certainly spurious technicalities? (I mean, if everybody went around doing this, not much building business would likely proceed in future, would it?)
Not settling off the plan purchase
- Thread starter SouthYarra
- Start date
But wouldn't this just be attempting to use lawyers to weasel out of a binding contract on the basis of almost-certainly spurious technicalities? (I mean, if everybody went around doing this, not much building business would likely proceed in future, would it?)
ask the courts - if they uphold a contract then it's binding. everyone is entitled to get what they pay for.
Cuts both ways too.... developers must deliver what they promise, even if the property has doubled in value.
I think the cart is being put well and truly before the horse here, there is no indication that the OP is unable to re-sell the property, imo that should be the first option taken. If the market then falls into a heap and it doesn't look like the resale will happen then start dialogue with the developer.
You don't see too many developers 'asking the courts' when buyers make money, surely?
I can imagine it now: "Your Honour, you must void the sales contract on which the purchaser has made a killing because I really did a truly crappy filling and sanding job before painting. I mean: I am too ashamed to sell this heap!"
No, the shamelessness of what you're advocating would make private schoolgirls with double-barrelled surnames blush.
Realistically the OP has two options.
1. Sell the property prior to settlement.
2. Put themselves in a position where they can settle.
Given settlement is in 2013, unless there's nasty credit default, or the property drops significantly in value, I'd say option 2 is very acheiveable if the OP puts their mind to it.
It's also plenty of time to work on selling the property.
1. Sell the property prior to settlement.
2. Put themselves in a position where they can settle.
Given settlement is in 2013, unless there's nasty credit default, or the property drops significantly in value, I'd say option 2 is very acheiveable if the OP puts their mind to it.
It's also plenty of time to work on selling the property.
Hi SY
Can you share the purchase with a trusted relative or friend?
The same situation happened to us years ago, so I convinced my brother to buy together with me. A few years later I had enough money to buy his share back.
You have ample time to find a willing party. And to change buyers on the contract all you need to do is to fill out a nomination form thru your lawyer at settlement.
I would avoid default like the plague.
Can you share the purchase with a trusted relative or friend?
The same situation happened to us years ago, so I convinced my brother to buy together with me. A few years later I had enough money to buy his share back.
You have ample time to find a willing party. And to change buyers on the contract all you need to do is to fill out a nomination form thru your lawyer at settlement.
I would avoid default like the plague.
I would be starting some serious due diligence now, to find out what similar properties are selling for to gauge what yours might be worth. Also talk to some local agents to get their feedback.
Things may well change between now and settlement however it will give you a better idea of the best path to take.
i.e. if you think you could get more selling now than your contracted price, get an agent involved to discuss listing - there may be still time for a new purchaser to save some stamp duty which may be a benefit and you could come out without any losses or even in front.
If prices are still the same or have gone down, then you need to consider some of the various option provided here.
Also it may be worth putting your position to a broker (if you haven't already done so) to see if there are any other lenders that may be able to lend you the money.
The quicker you get more information the better position you will be in to make a qualified decision.
Things may well change between now and settlement however it will give you a better idea of the best path to take.
i.e. if you think you could get more selling now than your contracted price, get an agent involved to discuss listing - there may be still time for a new purchaser to save some stamp duty which may be a benefit and you could come out without any losses or even in front.
If prices are still the same or have gone down, then you need to consider some of the various option provided here.
Also it may be worth putting your position to a broker (if you haven't already done so) to see if there are any other lenders that may be able to lend you the money.
The quicker you get more information the better position you will be in to make a qualified decision.
you could always sell at a slight loss by using an agent or try to come up with the other 10%. better than getting sued for non-settlement.
I think you better check your contract. many developers word their contracts such that you cannot flip the contract prior to settlement. you might be able to nominate the contract to another party, but not flip it.
The developers dont want people flipping properties for anything diferent to the purchase price, as this would affect the valuations for subsequent purchases.
You can choose to ask the developer to resell it for you, but they would only spend time selling yours once they had sold any others first.
The developers dont want people flipping properties for anything diferent to the purchase price, as this would affect the valuations for subsequent purchases.
You can choose to ask the developer to resell it for you, but they would only spend time selling yours once they had sold any others first.
Really? In my family we've bought 6 OTP and only settled on 2, never had an issue contractually re onselling
Given the limited amount of info provided..
Hi SY,
I'm going to possibly make some assumptions here given the limited amount of data you have provided to date.
1: You're partner has recently become pregnant and therefore you're serviceability has changed somewhat hence the original LVR of 90% is no longer viable with your current lender.
2: Based again on point # 1, you're also now thinking the apartment will not be suitable for a family (given its Sth Yarra, maybe it's only a 1 bedder) and you’re thinking about cutting you losses rather than going into heavy debt for something that will ultimately be unsuitable.
How am I tracking so far...??
Anyway, I can hopefully assume that you have only approached your original lender who now says.. “No, we now won’t support your original loan”
I think at the very least you need to speak with a professional mortgage broker such as PT Bear or Aaron C (who are both local to you) and get a firm answer either way. Bear in mind (no pun intended PT..
) that flipping I'm assuming will incur agents fee's and stamp duty which could be a very costly exercise so that may not be your best option.
If any of the points are correct, perhaps you can look at renting a more suitable (lower value) property for the family and install tenants upon settlement. Again though, a professional accountant will be able to guide you on how best to progress here.
Just also consider there may be a little wait to find the right tenant as the whole complex will come onto the market at the same time and so your rent may be determined by the most desperate owner looking for a tenant.
I guess what I'm trying to say is if you haven't already done so, speak to as many professionals as you can to get the most accurate information as you may be making some very costly assumptions when the right solution is just a phone call away.
God luck
B.D.
Hi SY,
I'm going to possibly make some assumptions here given the limited amount of data you have provided to date.
1: You're partner has recently become pregnant and therefore you're serviceability has changed somewhat hence the original LVR of 90% is no longer viable with your current lender.
2: Based again on point # 1, you're also now thinking the apartment will not be suitable for a family (given its Sth Yarra, maybe it's only a 1 bedder) and you’re thinking about cutting you losses rather than going into heavy debt for something that will ultimately be unsuitable.
How am I tracking so far...??
Anyway, I can hopefully assume that you have only approached your original lender who now says.. “No, we now won’t support your original loan”
I think at the very least you need to speak with a professional mortgage broker such as PT Bear or Aaron C (who are both local to you) and get a firm answer either way. Bear in mind (no pun intended PT..
) that flipping I'm assuming will incur agents fee's and stamp duty which could be a very costly exercise so that may not be your best option.If any of the points are correct, perhaps you can look at renting a more suitable (lower value) property for the family and install tenants upon settlement. Again though, a professional accountant will be able to guide you on how best to progress here.
Just also consider there may be a little wait to find the right tenant as the whole complex will come onto the market at the same time and so your rent may be determined by the most desperate owner looking for a tenant.
I guess what I'm trying to say is if you haven't already done so, speak to as many professionals as you can to get the most accurate information as you may be making some very costly assumptions when the right solution is just a phone call away.
God luck
B.D.
And these things rarely settle on time.
Another option is for the op to try to find a way to rescind the contract. He should go thru the contract with a fine tooth comb a d see if the developer has included everything that was supposed to be included and has complied with every term of the contract. Eg there may be a sunset clause which allows either party to rescind if certain things haven't been done by certain times.
no it would be more a case of "Your honour I am the developer, a Mr Smith-Johnston, I have had this terrioble condition imposed upon me and goodness me, the contract sees that I am entitled to terminate. What's that, the property has doubled in value? Oh I wouldn't know, probably not. Anyway off to pay the school fees, toodooloo good chap"
Im no expert, perhaps someone else can confirm.
flipping happens a lot in queensland as their property cycle flows. Sunset clauses, and clauses precluding onsales became more common at the top of the cycle as developers watched 'their' profits being taken by purchasers who onsold prior to settlement.
flipping happens a lot in queensland as their property cycle flows. Sunset clauses, and clauses precluding onsales became more common at the top of the cycle as developers watched 'their' profits being taken by purchasers who onsold prior to settlement.
IMHO Well worthwhile. They have a legal team (who prepared the contracts etc) and it would not be a significant cost to try and get you - especially as it is likely costs would be awarded against you.
From there they can essentailly try and recover the money from whatever you have - whether that means forcing you to sell off assets etc....
The Y-man
one reason why OTP should be in entity that can be sent down in flames, isolating the loss to the deposit. developers will take it as they just want any contract to get the project going, it's only later that the real greed kicks in
if i were you, i would get your solicitor to send a request to their solicitors to alter the name on the contract.
"your name or/and nominees" - say you want to create a trust acc to put the property into it
then try to get it listed with an agent.
"your name or/and nominees" - say you want to create a trust acc to put the property into it
then try to get it listed with an agent.
