We are just trying to negotiate a contract, the vendor wants up to 84 days after exchange so they have time to buy another house and move out, we said its too long and spoke to the RE and he said he will talk to the owner to see if they will pay $300 a week in rent to us after the 42nd day, hope that works ...and they want to use our 5% deposit as their own deposit for their next house.
settlement time
- Thread starter gavins1
- Start date
Many issues - what does your lawyer say?
Get a new solicitor!
So you are the Buyer? Why don't you want to wait 84 days?
As the Vendor they are entitled to ask for what they want, you can try and negotiate but at the end of the day they set the terms.
Not sure which state this property is in, but there are, as Terry says, many issues. A couple that spring to mind are:
Long settlements introduce the viability for the vendor to ask for early deposit release.
Your lender may have a clause in the loan offer that says if you haven't settled within a certain number of days (probably 90), they'll need to re-check you. Heaven help you if you've gone unconditional and your lender then decides to pull out. A big deterant for long settlements.
Long settlements introduce the viability for the vendor to ask for early deposit release.
Your lender may have a clause in the loan offer that says if you haven't settled within a certain number of days (probably 90), they'll need to re-check you. Heaven help you if you've gone unconditional and your lender then decides to pull out. A big deterant for long settlements.
Sounds like a reasonable solution.
Is the property going to be a PPOR or an IP?
If the former than a rent back could be a bit of a pain because I imagine you'd be pretty keen to get into the place as soon as possible.
Cheers
Jamie
You are living the dream!
Nah stuff that - give me two jobs over looking after the kids full time (unless they're in school).
Cheers
Jamie
, so its not all beer and skittles & its not for everyone.
I would be nervous about this? I thought that the deposit gets held in a trust account until settlement, rather than getting released to the vendor to spend as they please? If this is the case, if the vendor is relying on the 5% to purchase the new property they may find themselves stuck.
One of the legal beagles will be able to confirm this.
One of the biggest issues highlighted with rent-back to vendors is the chances of getting the tenants to pay for any damage they do is minimal - they will just say it never worked when you settled the house.
Similar threads
