URGENT HELP Should we settle??

[YvonneVincent]

Hi all plz help we are confused

We bought a house in a block no.19-21 which has just been subdivided so house no 19 is our property.

Settlement is gonna be on friday but issue is that we found the vendor's builder still hasnt built a carport on the house we bought as per requirement of the subdivision by the council. My solicitor said the we probably have to settle anyway as we bought the house 'as it is'.......

Vendor was informed anyway and he said he still wants the settlement to happen on this Friday but in exchange is willing to have 10K held back in my solicitor's trust account until the carport is done.

Another issue is that we had the approval from bank with all loan docs signed returned all ready to go back in ~May but then the title for the house no.19 wasnt released to the vendor until the 4th Aug and the bank wasnt able to settle after 14days when the settlement should take place as we had to sign and return the loan docs etc again, so two days delay and the vendor charged penalty interest for that which is ~250.

I am undecided as should I still settle on Friday or have the carport built first to avoid any potential issue with the council... If we elect the 2nd option should we still be charged of that penalty interest? as we thought the 14 days settlement term on the contract is not applicable anymore then?

THX FOR UR HELP

 

[jrc]

I would settle if the money is to be held back until the carport is constructed. If the money is held in your solicitor's trust account then you will have extra protection that the carport will be built.

 

[Propertunity]

the vendor's builder still hasnt built a carport on the house we bought as per requirement of the subdivision by the council.

IF that were true, then I suspect that the council would not have issued the paperwork to allow the sub-division to have gone through I am guessing that the sub-division must have gone thru or you would not be able to register title at settlement.

My solicitor said the we probably have to settle anyway as we bought the house 'as it is'.......

Be guided by what your solicitor says - that's what you are paying him for.

Vendor was informed anyway and he said he still wants the settlement to happen on this Friday but in exchange is willing to have 10K held back in my solicitor's trust account until the carport is done. I am undecided as should I still settle on Friday or have the carport built first to avoid any potential issue with the council.......

$10K is a huge amount with which to build a carport. I'd be settling and holding the $10K back until it is done or if it is not done within a set timeframe (your solicitor will word up the special condition), then keeping the $10K to do it yourself.

 

[marg4000]

Unless the contract stipulates a carport must be built then you have no right to delay settlement, or to keep back any money.

You inspected the house, surely you noticed there was no carport.

If any money is held back then it will be kept in the solicitor's trust account and released to pay for the work.
Marg

 

[boods99]

I'm with Propertunity on this one,
If a condition listed on a "conditional approval" is not satisfied and a notice of clearance obtained from council (this is a local authority condition in WA) is not received, then you would not be able to submit to the Commission, and without that...no titles would be able to be issued.
If the process is the same as in WA, you are lookng at about another 8 to 10 weeks to have titles issued...
No title...no settlement

Boods

 

[Bargain Hunter]

$10K is a huge amount with which to build a carport. I'd be settling and holding the $10K back until it is done or if it is not done within a set timeframe (your solicitor will word up the special condition), then keeping the $10K to do it yourself.

Given that several months have gone by and the builder has not constructed the carport then chances are they won't or not in a timely manner. I'm with Propertunity settle but have conditions to release the funds if completion not achieved in a timely manner.

 

[dl2276]

Is the form/style/design of the carport also spelt out ?

Be fine to withhold the funds in trust but if they just slap some el cheapo prefabricated carport on there rather than the style your were expecting then I imagine will just lead to another issue.

$10k sounds like a lot for a carport. I just put one up (simple colorbond flat roof - 3m x 7m and the cost ranged from $2.5k to $5.5k, inclusive of all council submissions).