Seller breached the Contract - Failed to settle

[smy7484]

With the mortgagee not being ready yet, could be a few things, ie not having a valuation back.

Is the property vacant? What is the agent doing? He has a possible commission at stake, so should also be trying to get the sale through? If the mortgagee knows about your offer, and the valuation comes through and supports your offer, they should be happy to come back to you. If the valuation is higher, they may choose to take the property to the market, to ensure that they are not setting themselves up for an "underselling" claim.

Hi Peterw

The property is currently tenanted. I have spoken to the agent a few times, he has tried it and will continue to, but it's the mortgagee delaying it.

My Solicitor has also contacted the mortgagee but they have advised they are not in a position to enter into contract, but will retain my details and pass it on to the relevant department when they are ready to sell.

As for the costs incurred, I would absolutely love to chase this and also to get an order for specific performance the problem is that it takes money to chase it.
My solicitor has advised to institute the correct proceedings you are looking at an initial spend of $10,000.00 and then probably $20,000.00 as we go along.

I guess I should cut the loss now.
Can anyone advise is this cost tax deductible?

Thanks

 

[Peterw]

Who will you try to reclaim your cost from ? The seller (a company) is now bankrupt, what are your chances ? Does the Company have other assets, I doubt it. Sound like you just have to sit and wait for the mortgagee to get back to you. In my case, we actually had a writ on the property before bankruptcy occurred, so that was our protection.