Rescission Notice

[Superstitionist]

Selling a commercial property, all outgoings are paid by the tenant with a 10 years lease in place. Have secured a purchaser with 10% deposit.

The transaction should settle a couple of weeks ago, but the purchaser has delayed the settlement as they request the latest Form3 from the tenant, but there is no response from the tenant yet, so they are willing to wait and pay the penalty.

My solicitor has suggested that I can put some pressures by issue a rescission notice, but the outcome would be scaring the purchaser off or forcing the purchaser to settle.

I don't have any other commitment related to the sale, and wouldn't mind that much of waiting. Also I can't really see any disadvantage of waiting in my side as the purchaser is paying the penalty, and I will get the deposit if they withdraw at the end.

But is there any catch that I have oversighted if I keep waiting like this...

Super.

 

[JoannaK]

technically the purchaser could say that the delay has been brought about by your side, and refuse to pay the late penalty fees.

if i were you i would be chasing your tenant for that form; afterall, until settlment they are still your tenants.

 

[Superstitionist]

technically the purchaser could say that the delay has been brought about by your side, and refuse to pay the late penalty fees.

if i were you i would be chasing your tenant for that form; afterall, until settlment they are still your tenants.

I did, the form was provided with the vendor statement, which is about 2 months old, and my solicitor said it is still valid unless it is over 6 months. Also, according to my solicitor, the purchaser's solicitor aware that the delay is on their side as they want to get the latest one.

As far as I know, the Form3 is related to body corp, I really want to find out exactly what information that the purchaser is looking at myself...

 

[Superstitionist]

Enough is enough, eventually I had issued the Rescission Notice to the other side a couple of weeks ago, which will be expired by the end of today.

Got some story from the other side solicitor, in actual fact, during all these times, the purchaser was waiting for the finance approval, and everything should be ready in a couple of days, and they hope that I can extend the settlement for another couple of days.

I have 2 options at the moment:

(1) Business is business, no mercy, no risk, stick to the rule, get the deposits and put the property back to the market after end of today.

(2) Everybody has their up and down, give the purchaser a chance, extend the settlement a couple of days, but risk to re-issue another rescission notice and wait for another 14 days if nothing happen.

Which option would you choose.....

 

[Ausprop]

good grief... these are murky waters now. if you ever have the misfortune of needing to see overpaid solicitors to consult in this field you will probably find it is not as easy as taking the deposit and off you go. All sorts of claims and counter claims will be lodged, caveats, legal arguments blaiming someone for this and that regardless of the truth, all at $300/hr each side - possibly 2 years in and out of our court system and someone will emerge a winner.

 

[Perp]

I would go with option 1 but tell them that if they get their finance approved quickly, perhaps they can come back to you with an unconditional offer to purchase at that time, and you'll consider allowing the forfeited deposit to be reinstated.

I'd look more kindly on them if they'd been honest about having difficulty obtaining finance approval up-front, instead of giving you this horse*##% about the form 3. Who knows what other tricks they'll try and pull if you give them the opportunity?

 

[Superstitionist]

The purchaser's solicitor has faxed us all the relevant letters to confirm their finance status, and assure a settlement will be able to take place by tomorrow, so I have decided to let go of this time.

Now just wait and see...wait and see...wait and see.....

 

[Superstitionist]

Just got a phone call from my solicitor, all the adjustments that received from the purchaser's solicitor are wrong, they need to re-do, that means the settlement won't be able to happen tomorrow, they request to postpone one more day.

It doesn't make much difference to me, the settlement has been postponed since mid November last year, and think of the bright side, I am getting one more day on the penalty fee.....so I am saying YES without any hesitation...