We are just waiting on settlement for an IP. We are going to rent it out to the current owner from when we buy it. The vendor has been requesting an early settlement before Christmas but now it looks like we won't be able to until later in January which will still be within the contract time frame. But now the Vendor has requested we please release a portion of the deposit we have already paid as they are in some financial trouble. I had a feeling as they seemed in a rush to get it settled and never negotiated on our offer we made below asking price.
Our lawyer has told us that we will be taking a risk by releasing the money because if the Vendor wanted they could make us go to court to get it back. But the lawyer also said if we say no then we are really saying "we don't trust the vendor" and this could cause problems when leasing or they might not go ahead and rent it out after settlement. This would be not in our best interests as they have offered to pay good rent money and probably over market rates. Then we would have to find new tenants and probably get less rent.
So we offered just a smaller amount so we never refused them but still offered them something. We were hesitant to even do this as we don't have any money left after this purchase so we can't afford to take them to court etc.
I'm just curious to what you would do in this situation? bear in mind this IP is an important purchase and we don't want any problems with the settlement or from we when rent it.
Our lawyer has told us that we will be taking a risk by releasing the money because if the Vendor wanted they could make us go to court to get it back. But the lawyer also said if we say no then we are really saying "we don't trust the vendor" and this could cause problems when leasing or they might not go ahead and rent it out after settlement. This would be not in our best interests as they have offered to pay good rent money and probably over market rates. Then we would have to find new tenants and probably get less rent.
So we offered just a smaller amount so we never refused them but still offered them something. We were hesitant to even do this as we don't have any money left after this purchase so we can't afford to take them to court etc.
I'm just curious to what you would do in this situation? bear in mind this IP is an important purchase and we don't want any problems with the settlement or from we when rent it.