to settle or not

[veebeeseewee]

Hi everyone,

Seems like the dramas just never end for me.

Settlement will be on this coming Friday, I was told normally it will take place around lunch time.

I went to have my final inspection on Tue as on the contract a list of tasks I requested the vendors to complete should be done at least 3 days prior settlement, ie yesterday. When we'd got there, she's still cleaning up and lawn mowing at the property. She told my agent that the carpet cleaning will be done either Wed or Thu!! I didn't know what to say, thought it should be fine. After a few hours, I decided to talk to my agent to get her to inspect the property again before settlement and she said she can do it on Fri around 11am, even take some pictures for me.

Does anyone think 11 am on settlement day will be too late for final inspection? What should I do not to settle just because the vendors didnt meet the requirement of the sale contract? And what will happen if I don't settle?

Confused....

 

[luckyone]

I'd speak to your solicitor asap about this. We made the mistake of trusting the builder of our last investment property to finish up the last bits of work in the place, you know just minor things like installing the oven and connecting the gas! Anyway, did our final inspection the day before and was told they'd definitely be installed the next day (settlement day). Our solicitor said we could delay, but he had it in writing that they'd definitely do it. They didn't. Didn't know until after I picked up the keys the day of settlement. A lot of heartache over the next few days getting the final things sorted out.

Luckily we kept climbing the chain at the builders office until we got agreement that everything would be fixed on the Monday (settled on a Friday). This was ok with us so long as it was actually done as we had landscaping to do over the weekend so weren't opening the place for rental inspections till the Wednesday anyway. Luckily they did show up on Monday and fix everything up. Looking back, I would have rathered delay the settlement till Monday for piece of mind, but it was good having the weekend to do the landscaping and stuff.

 

[pennyk]

if its mainly cleaning tasks, I wouldnt be too worried. I've always assumed that I would still need to do cleaning after settlement.... and certainly when I was moving out, I wouldnt have had these things done 3 days before settlement!
If there are major structural or building jobs, then it would be more of a concern.

 

[veebeeseewee]

I'd speak to your solicitor asap about this. We made the mistake of trusting the builder of our last investment property to finish up the last bits of work in the place, you know just minor things like installing the oven and connecting the gas! Anyway, did our final inspection the day before and was told they'd definitely be installed the next day (settlement day). Our solicitor said we could delay, but he had it in writing that they'd definitely do it. They didn't. Didn't know until after I picked up the keys the day of settlement. A lot of heartache over the next few days getting the final things sorted out.

Luckily we kept climbing the chain at the builders office until we got agreement that everything would be fixed on the Monday (settled on a Friday). This was ok with us so long as it was actually done as we had landscaping to do over the weekend so weren't opening the place for rental inspections till the Wednesday anyway. Luckily they did show up on Monday and fix everything up. Looking back, I would have rathered delay the settlement till Monday for piece of mind, but it was good having the weekend to do the landscaping and stuff.

I do not have a solicitor but a conveyancer. Can my conveyancer help in this case to delay?

 

[luckyone]

Not sure sorry, but I'd give them a call in the morning and find out. Carpet cleaning not being done may not be enough to delay it, but they might be able to hold back $5,000 or something at settlement and that'll make the vendor get it done quick smart! Either way, I'd speak to your conveyancer first thing tomorrow morning to find out what can be done.

 

[smg]

If there is no defect in title you are not able to delay settlement, everyone has different opinions of clean too so i cant see how you would win that fight. Your conveyancer will tell you all this and the law ask them thats what your paying for is their legal advice.

 

[Ausprop]

If there is no defect in title you are not able to delay settlement, everyone has different opinions of clean too so i cant see how you would win that fight. Your conveyancer will tell you all this and the law ask them thats what your paying for is their legal advice.

agreed, unless there are specific contractual clauses to cover these issues (unlikely). In fact they coul dsue you for failure to complete

 

[veebeeseewee]

My conveyancer said I can cancel it anytime but the bank will need 3-4 days notice so the settlement will have to be delayed for several days. My agent hasnt able to look at it today maybe because of unable to get in touch with the vendor. So hope she will be able to look at it first thing in the morning tomorrow. I just hope everything will be fine so I will go ahead with the settlement successfully tomorrow, otherwise I will assume I'll finish up the cleaning for her if she didnt complete the job. Also the house will be opened for inspection for potential tenants in late afternoon, I really hope everything will go well!

 

[Focus]

I have had this happen to me before. My settlement agent advised me to hold back a small amount of money at settlement to cover work not done. We did ($1000) and all work was completed a day after settlement!!

 

[Ausprop]

I have had this happen to me before. My settlement agent advised me to hold back a small amount of money at settlement to cover work not done. We did ($1000) and all work was completed a day after settlement!!

I guess it doesn't hurt to try. In one of my earlier deals, the vendor had got divorced and was going overseas, so he just walked thru the house and picked what he wanted and left. There was nothing in the contract to say he couldn't do that. Was a few trailer loads of rubbish in that lesson!

 

[veebeeseewee]

just an update, she's done almost everything (the front screen door is the only broken door that she didn't fix). all good and glad. but now more works might need to be done!

 

[Melbournian]

Hi everyone,

Seems like the dramas just never end for me.

Settlement will be on this coming Friday, I was told normally it will take place around lunch time.

I went to have my final inspection on Tue as on the contract a list of tasks I requested the vendors to complete should be done at least 3 days prior settlement, ie yesterday. When we'd got there, she's still cleaning up and lawn mowing at the property. She told my agent that the carpet cleaning will be done either Wed or Thu!! I didn't know what to say, thought it should be fine. After a few hours, I decided to talk to my agent to get her to inspect the property again before settlement and she said she can do it on Fri around 11am, even take some pictures for me.

Does anyone think 11 am on settlement day will be too late for final inspection? What should I do not to settle just because the vendors didnt meet the requirement of the sale contract? And what will happen if I don't settle?

Confused....

unless it is something structural such as a burst pipe or something, that list of things to do will not fly. if it is in the contract of sale - you can request and negotiate some compensation for the cleaning or mowing the lawn.

i had a buyer similar to - issued me a list of things to do which included scratches on the floorboards, remove a TV bracket that was pre-existing etc. I instructed my lawyer to communicate that i will issue a Rescission Notice in the event of non-settlement. they caved. If you do not settle you will end up in a lot more trouble than the cost of doing those cleaning and lawn mowing.

remember you are also entitled to one final inspection only

 

[Melbournian]

just an update, she's done almost everything (the front screen door is the only broken door that she didn't fix). all good and glad. but now more works might need to be done!

you're a tough buyer but yeah if she willing to do it. why not?

 

[Superstitionist]

If I have spent several hundred thousand dollars to buy a property, I don't think I would play around with the settlement for several thousand dollars.

Well, just my 2c.

Super.

 

[veebeeseewee]

I agree with both of you, Mebournian and Super. I realised structural problem might be a stronger point for non settlement. The list of things I requested is just because I would have other properties that I could have gone for cheaper for less works and this agent was helping me to get this property and lucky for me that the vendors didn't mind doing the works, and hence I expected they kept their promise. Anyway it's a good exercise for me being my very first property. Much more to learn!

 

[Melbournian]

well just make sure you settle on time.

 

[veebeeseewee]

well just make sure you settle on time.

oh yes, I did, it already happened two days ago