NSW vendors not current owners?

Hi all,

Doing a loan ATM and just found out the vendor on the contract is not the current owner of the property:eek: So obviously the bank picked up on this when they did the title search.

The vendors on the contract are builders. They have a contract in place with the current owners to buy the property and have done some cosmetic renovations on the property and are now onselling to my client. Their plan was to settle the sale (to my client) and the purchase from current owners simultaneoauly with a special condition in the contracts so as to avoid having to fund the settlemnet of the property.

Bank says this can't be done in NSW only Victoria. I guess it's like buying off plan then reselling to another party at completion.

So legal eagles, have you seen this before in NSW? Any ideas how to get this to work because the bank is saying can't be done in current format. ie have to either get the builder to settle on the property and become the legal proprietor which no one wants (time frames) or somehow get the owners on as vendors for my clients..
Hi Marty

I have never seen this happen. But it should be doable if the vendor can arrange a simultaneous settlement with everyone standing around settling at the same time.

There would also need to be some each provisions in contracts as the builders are selling something they don't legally own title to as of yet.

Another option is for the purchaser to enter into a contract with the owner and have part of the sale go to the builders - but they may not like this method.
Thanks Terry. Bank wont do the simultaneous thing but hopefully its sorted now. The owners will write up a new contract with my purchaser and the builder will be invoicing the owners directly. Never stop seeing new things in this game even after 9 years.