Settlement delay QLD

[stirling]

In Queensland
Can anyone tell me the consequences of a settlement delay by the purchaser. Delay is due to a bank being slow with a payout figure to pay out an existing loan. New finance is ready to go.
Where do I reference information about settlement?

Stirling
(For a friend's purchase)

 

[BUNDY]

You or your solicitor can write a letter to the vendor asking for an extension in settlement. If the vendor/their solicitor agrees, there may not be a penalty.

If they want to be tough, they can charge you daily interest on the outstanding amount. This is usually found on the contract.

Cheers
BUNDY

 

[stirling]

Thanks Bundy

The contract is only 2 pages, (not like South Aust contract) and has little information.

Stirling

 

[Kevin Hockey]

Originally posted by stirling
Thanks Bundy

The contract is only 2 pages, (not like South Aust contract) and has little information.

Stirling

The contract for a house and land in Qld is 7 pages, the final 5 pages being terms and conditions. That is after you have completed the Form 31C and Form 27B. There is an area under the deposit paid for default interest. As Bundy said, speak to your solicitor.

Kev

www.nundahrealestate.com.au

 

[Les]

G'day Stirling,

Solicitor is definitely "the way to go". In my experience, if the purchaser doesn't "make it" to the agreed settlement date, the vendor can choose to walk !!! And this could have some costs for the would-be purchaser.

In my case, (same as yours - lender being refinanced "dragged the chain") I got bailed out by some VERY swiftly arranged Bridging Finance. (Thanks, Rolf!!!)

My vendor gave me 7 days from original settlement date - with the words "there WON'T be another extension!!" The deal went through, and the laggard lender (who was being re-finance OUT of another property) took another TWO WEEKS AFTER the one week extension to get THEIR bl**dy act together !!!!!! If it wasn't for the bridging loan, this little black duck would've missed out BIGTIME !!!!!!!

My laggard lender's solicitor told me he was "waiting for searches to be completed" - say wha?????? They were LOSING the property - what the HELL did they need a search for?????

Smiling now, but sheesh !!!!!


Regards,

 

[stirling]

I have never had any problems with finance, but I always use Rolf L.

But it seems that my friend picked a very unethical finance provider. The plan was to refinance another loan with the provider and get a new loan. The provider promised $x at y% interest rate. They then stalled until one day before finance approval date and then tried to screw the borrower. Approval letters either left off interest rate or amount or was subject to valuation (which was already done).

Quote lender " I know the documents we are asking you to sign say 6.8% not 6.1% but trust us we will get that changed prior to settlement"

"We can not renegotiate your old loan unless you agree to take out the new loan with us"

The earlier verbal assurances were worth nothing.

They are still stuffing around prior to settlement with payout figures not forth coming. Anyone would think that they did not want to lend money.

Stirling

 

[ocean view]

LES

I have asked this question about walking away so many times & got 3 answers..

What is the right answer?

If I miss a settlement date & there has not been an extention granted at all!

what can the vendor do..! Keep deposit & run???,,

In NSW you have 14 days notice to complete to protect us buyers
In QLD???????

Does Vendor get to Walk with my deposit.. Leave me to sue the lender for being to slow? (Good louck!)

It's frustrating as I buy in qld often & have had this happen many times. But I have been lucky every time. But heard bad stories lately.

OV

 

[Rolf Latham]

Hi OV

Here is the Rolf understading of the deal in Qld - often wrong never in doubt :O)

I have been told several dozen times if we dont complete on the required day the vendor can walk, take your deposit AND sue you for any difference that they sell for subsequently.

I know of no one that has suffered this fate, and I prefer to keep it that way, but........................

Unethical vendors will take advantage of a hot market, I have been told on one settelement due mid September that the vendor can get 12 % more for her property if we default - talk about commercial reality :O)

Ta

rolf

 

[ocean view]

DIRTY TRICKS

Rolf I agree..

Try this one out,,
My land developer in sth east qld had sold land off the plan,, 1 yr &
100 blocks..

Each one went up IN VALUE min 50% say $160k purchase now $250k value at settlement.

They started letting us have 2 weeks extention after settlement was called on..

But last month 5 unlucky buyers did not even get an hour longer,, But at least the developer gave them back the deposit... So Big of them I guess ,

They only pinched back $90k off the buyers.. some of the buyers were paying cash as well.. One delay was due to a solicitor being sick on the day.. Wonder he's feeling now..????
hehe
OV

 

[Les]

G'day Ocean View,

Sorry, I can't quote "chapter and verse" - let's just say that I endeavour to treat "settlement day" as sacrosanct. And I leave all of this sort of stuff to my solicitor (except when bridging finance seems to be the only option....)

I do believe, though, that my original comment is close to the truth (if not right on!!) Solicitor is definitely "the way to go". In my experience, if the purchaser doesn't "make it" to the agreed settlement date, the vendor can choose to walk !!! And this could have some costs for the would-be purchaser.

Perhaps Asy or Kevin Hockey can help with the actual laws regarding this ....

Regards,

 

[asy]

Hiya Les, and OV...

It's a really odd situation, In Victoria, if you don't settle, the vendor serves a rescision notice giving you 14 days to settle, but in QLD, I believe the vendor can walk if the purchaser doesn't turn up.

It's also crazy with respect to the finance clauses...

in VIC, if you get to the end of your finance clause and you haven't let the vendor know what's happenning, you automatically go unconditional, here in QLD, at the end of the finance clause, if the purchaser has not told the vendor what's happenning, or advised that the finance clause has been met or discharged, the vendor has the right to end the contract.

I have said it before, and I'll say it again...

QLD needs to take the WHOLE entirety of the real-estate-legislation and bin it. Take up the VIC legislation and get someone with a nice sharp pencil to scratch out the word Victoria, and enter the word Queensland... (OR simply use the 'replace' function in word!!!).

asy

 

[BUNDY]

I agree totally with you ASY. The vendor has all the rights, the poor purchaser is at the mercy of the Banks and then Vendor.

Unless the purchaser has pre approved finance they have little/no control.

Yes, I must admit it is time Qld came out of the dark ages in relation to their contracts

BUNDY

 

[astroboy]

Yes and no, I like quick desicive deals. If you are in a good position to do the deal, finance should be easily done within the standard 14 days.
If not you need rethink your position in todays market.
I've had occasion to be there on the vendor side as well and often haven't liked being held up by a purchaser while there are others in the wings who can act quickly.
ab

 

[phm]

Hi there.

We were in this situation too. Our solicitor's secretary suggested that, although they could certainly write letters to the vendor's solicitor, it was often advantageous to contact the agent ourself. The agent has already sold the property and almost has his commission. Much easier for him to talk to the vendor and convince him/her of an extension than to have the contract rescinded, pay back the $1000 deposit that the agent has, and then start to sell the property all over again.

We contacted the agent and he took care of the extension. Saved a little money and time too, as the solicitor didn't have to write a letter, etc.

 

[Jacque]

It's also crazy with respect to the finance clauses...

in VIC, if you get to the end of your finance clause and you haven't let the vendor know what's happenning, you automatically go unconditional, here in QLD, at the end of the finance clause, if the purchaser has not told the vendor what's happenning, or advised that the finance clause has been met or discharged, the vendor has the right to end the contract.

I have said it before, and I'll say it again...

QLD needs to take the WHOLE entirety of the real-estate-legislation and bin it. Take up the VIC legislation and get someone with a nice sharp pencil to scratch out the word Victoria, and enter the word Queensland... (OR simply use the 'replace' function in word!!!).

asy

Searching through old posts, I found this and realised I've been living under a rock as far as this Qld legislation goes! I had no idea that the contract DIDN'T become unconditional once the finance clause date had passed. Only discovered it today, when I rang my soli to find out that the current contract I have on one of my Qld places (selling it to finish extending my own PPOR) isn't officiallly unconditional, until the buyer informs me that the finance is all approved. Of course, at this point I can terminate the contract, but being empathetic (been there done that) I'm granting an extension for the finance. The building inspection date, however, passed by yesterday as well and the cheeky buyer wanted an extension for that as well. As I know he's already had the inspection, I had no qualms about saying no to this request. It has been 14 days after all.

This must be very frustrating with all this different legislation varying from state to state. I can see why you favour the VIC laws here, Asy.
Very confusing!!

 

[Jacque]

And further to this, are there any plans on the horizon to make the RE contract laws national for ease of use by all concerned parties?