Settlement delay issues

Hello

It's my first time on here, i tried to find a thread that would answer this question but couldn't. So i hope i'm not repeating

I have settlement for my first home and the bank has now stated that they won't be able to make the day. The solicitors for the vendor are now saying they are going to keep my deposit and my conveyancer has told me i may have to go to court to avoid this from occurring.

I still want the property, but would just like a slight extension in the settlement. But can they take the deposit? i can't see anything in the contract that says they can.
 
You have 14 days past settlement date to settle .. after that then it can get nasty and you could loose the deposit.

The same thing happened to me this time last year with my PPOR. It came down to the wire. The settlements people couldn't tell the loan people when they could settle. I had been served notice that the vendors wanted to keep the deposit and withdraw. My conveyancer told them to pull their head in and that we still had 14 days.

I didn't relish loosing my 5% deposit and the below market house I had bought. With one week to go I emailed my NZ based father who was in Europe consulting and asked if he could lend me the $200k the bank would eventually give me. This was Thursday and the following thursday was D -Day.

He was ok with it and I booked settlement for the Wed. On the monday the money was transferred .. 3 hours later the bank called and said they were ready to settle.

I had applied late for a mortgage as a sale of an IP was delayed - it turned out to be delayed nearly 3 months - I was going to settle with the cash from that and then look around for finance!!

Yep. stress like that is not really needed .. The moral .. go to the bank early, not at the last minute!

If you are using a conveyancer, you need to consider getting a solicitor involved at this stage.

good luck,

RightValue
 
Be aware that the rules vary between the states. In Queensland for example you must settle by 5pm on the nominated day of settlement.
If you buying in Victoria I believe you have 14 days.
 
Be aware that the rules vary between the states. In Queensland for example you must settle by 5pm on the nominated day of settlement.
Exactly. In QLD, you can forfeit the deposit immediately at 5pm on the nominated day of settlement. We have "time is of the essence" contracts.

Where is the property?

How long did you give your lender to approve finance and settle? If it was enough time, perhaps your broker can apply some pressure to the lender. It may not make any difference, but somebody has to try and make lenders more accountable for the ridiculous delays that seem to be a common occurrence.

I won't be doing any more purchases without including a clause to protect me from lender-induced delay; it's just too risky.
 
The property is in Victoria. As soon as the lender told my broker they wouldn't do it ( three business days) i let the vendor know. It didn't matter.

Seems she is keen to be nasty. She issue a Rescission Notice already. So i have another 124 days which are going to cost me. Nothing i can do but work harder and not deal with that particular lender again.
 
The property is in Victoria. As soon as the lender told my broker they wouldn't do it ( three business days) i let the vendor know. It didn't matter.
If you went unconditional on a three day settlement, I'm not surprised the vendor is unhappy! :eek: The fact that you let the vendor know is irrelevant if the contract was unconditional. Telling somebody that you're going to breach the contract doesn't change the fact that it's a breach.

If you can find any lender who can settle in three business days, please share with all of us! I was assuming you'd allowed them at least 4 weeks, and 6 weeks if you're using any structures (Trusts etc), or drawing equity from another property.

Not sure what the significance of 124 days is?
 
Depends which bank - I am putting through a loan with WBC and settlement is 36 days, which based on what my MB said should be OK. Apparently their turnaround times have improved recently. I know they hit my credit history a day after they received my application. I guess I'll know for certain by 18/12 or if not before.

xVicx, what's the latest with your settlement extension?
 
after unconditional the bank refuses finance

Hello,

My first time here, I am in spain and my sister is selling my apartment for me in Brisbane, QLD. We found a buyer through a real estate and after one extention we finally went unconditional, however the day before final settlement we were advised that the bank has now refused the finance and the buyer can no longer pay, a day later we find out that the real estate agent didnt secure the 20k deposit and didnt inform us of this until a day after settlement. What is my course of action?

I am in a tight spot finacially and needed this settled 2 weeks ago, can I get the deposit that wasnt taken, who can I chase regarding responsibility?

Any info would be greatly appreciatted.

Thanks

Peter
 
the day before final settlement we were advised that the bank has now refused the finance and the buyer can no longer pay, a day later we find out that the real estate agent didnt secure the 20k deposit and didnt inform us of this until a day after settlement. What is my course of action?
If the contract included provision for a $20K deposit, you can immediately pursue this as a debt, ie you don't have to get a judgement that they owe you this money, it's already an enforceable debt. However, one wonders whether they have $20K to give you, if they hadn't yet paid it and couldn't obtain finance...

Have you spoken to your solicitor?
 
You don't get the whole deposit anyway, the agent will deduct their commission as they had an unconditional sale for you; you will get the balance of the deposit if any ..

So in this case in reality the agent screwed themselves. By the time you take legal fees into account persuing either the agent or the purchaser will likely leave you with diddly squat... If you manage to get the deposit as a debt the agent will probably take their commission.

The contract is still unconditional so you can sue the purchaser for specific performance but if they haven't got the money ... well the best bet is to sell the property again, even reduce the price and the purchaser who lost the finance will be liable for the difference in sale prices.

You need to get a lawyer involved at this stage to do your conveyancing.

Also Get yourself another agent!

good luck,

RightValue
 
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