What does this mean?

[pawprints]

On a Sec 32:

ASIC Release of Charge.

Purchaser acknowledges and agrees that on or prior to the Settlement Date, the Vendor will not hand over a release or partial release of any Australian Securities and Investment Commission charge lodged against the Vendors assets.

 

[BayView]

Sounds like you need your lawyer to go over it.

 

[Raddles]

HI there
with a settlement with a company - you will often receive - not only a discharge or release of mortgage but also a release of a charge over company assets.

The fact that a release is not going to be offered over company assets does need investigating - you want to make sure whichever lender has required the charge to be granted - will be excluding the land you are buying from their securities.
thanks

 

[pawprints]

Yikes! OK this sounds ominous. This is a residential unit I am interested in, so does this mean then it is owned by a company rather than an individual?

 

[Raddles]

Hi there
most likely it is a company - it is no issue purchasing from a company rather than an individual - your conveyancer/solicitor will just make additional inquiries in the process.
All the statement may be doing is putting you on notice that the land is not affected by the company charge - but it does need to be investigated.
thanks

 

[boomtown]

Your solicitor needs to review the charge to satisfy himself that the charge does not cover the residential property.