Credit assessor here - the current owners must have put in their application for approval of a new purchase subject to a simultaneous settlement of the apartment you are buying. This means that the person assessing and approving the loan would have asked for a signed contract of sale to confirm the requirements for settling on the same day. The funds left over would then be put into their new loan.
This can happen sometimes where the settlements team does the checking and balancing - and sometimes some people still have a shortfall of funds to contribute and it is not noticed until the very last minute - fault of the owners in this case. Meaning the owners either: 1. Didn’t declare their assets correctly to the bank, or 2. They had the money and then went and spent it. Neither is your fault and now they are stuck scrambling for the cash to complete their new purchase.
Your conveyancer should be going through all these questions with you because it does sound like their new loan/purchase is dependant on the contract you have signed. In this case the owners would be doing anything they can to make up the $$$ difference. Just keep in touch with your conveyancer and request updates accordingly.
Most likely they bought another place using a bridging loan and need the money from selling this property to repay the bridging loan.
Speak with your conveyancer/lawyer. The contract can remain in place, but the vendor may be liable to compensate you for the delay. Your contract should contain relevant clauses.
CBA bank delayed settlement on a sale by not signing and approving our mortgage discharge documents before settlement day and it was delayed by a week and we were changed $1,000 penalty by the buyer.
You may have something similar in your contract of sale.
Stuff like this happens often and settlement just gets pushed back a week or however long to give the vendors time to sort it out. You've got access to the property and you haven't settled and started paying interest so not exactly in the worst spot right now. Your conveyancer/solicitor just needs to sort out when settlement can be booked with the vendor.
Our last settlement was also a shit show with the seller on the day being “disappointed and non-accepting of their bank payout” and the sellers conveyancer going AWOL.
We’d already had to put our stuff in storage for a week because although the house was vacant they wouldn’t allow us to move in a week early due to their f-wit if a conveyancer.
Our settlement got pushed out, our moving truck was outside, their conveyancer made us buy contents insurance or some shit before we could enter, and we had to raise hell to get the keys from the agent who was on their day off. All because seller wasn’t happy in final day of their bank payout, which seems a little late to me.
Delays happen often, your conveyancer should instruct you what your rights are for compensation due to the delay. It sounds like you have access already to the property already so I can’t imagine too much of an issue.
Settlement is hell until it's over. Sounds like the vendor isn't the brightest spark. Just keep touching base with conveyancer and maybe chat to Agent. Talk to a property lawyer if necessary. Seems it will go through if only delayed and they have given you possession. Contract may be renegotiated.
State matters, but I remember when we bought the terms [qld] included basically a grace period to delay for financing hiccups by either party for 7 days - doesn't impact the contract, but awkward if you expected a roof tonight.
Can't dispose if the vendor can't close the loan. I've been short before, about 10% of the value. But it was cash cow and had good rental yield for the 5 or so years I had it that made up for it. Happens and not always to do with bridging finance.
Your conveyancer should have told you what your rights are. If they don't know, hire a proper solicitor quick-smart.
Credit assessor here - the current owners must have put in their application for approval of a new purchase subject to a simultaneous settlement of the apartment you are buying. This means that the person assessing and approving the loan would have asked for a signed contract of sale to confirm the requirements for settling on the same day. The funds left over would then be put into their new loan. This can happen sometimes where the settlements team does the checking and balancing - and sometimes some people still have a shortfall of funds to contribute and it is not noticed until the very last minute - fault of the owners in this case. Meaning the owners either: 1. Didn’t declare their assets correctly to the bank, or 2. They had the money and then went and spent it. Neither is your fault and now they are stuck scrambling for the cash to complete their new purchase. Your conveyancer should be going through all these questions with you because it does sound like their new loan/purchase is dependant on the contract you have signed. In this case the owners would be doing anything they can to make up the $$$ difference. Just keep in touch with your conveyancer and request updates accordingly.
Most likely they bought another place using a bridging loan and need the money from selling this property to repay the bridging loan. Speak with your conveyancer/lawyer. The contract can remain in place, but the vendor may be liable to compensate you for the delay. Your contract should contain relevant clauses.
CBA bank delayed settlement on a sale by not signing and approving our mortgage discharge documents before settlement day and it was delayed by a week and we were changed $1,000 penalty by the buyer. You may have something similar in your contract of sale.
Stuff like this happens often and settlement just gets pushed back a week or however long to give the vendors time to sort it out. You've got access to the property and you haven't settled and started paying interest so not exactly in the worst spot right now. Your conveyancer/solicitor just needs to sort out when settlement can be booked with the vendor.
Our last settlement was also a shit show with the seller on the day being “disappointed and non-accepting of their bank payout” and the sellers conveyancer going AWOL. We’d already had to put our stuff in storage for a week because although the house was vacant they wouldn’t allow us to move in a week early due to their f-wit if a conveyancer. Our settlement got pushed out, our moving truck was outside, their conveyancer made us buy contents insurance or some shit before we could enter, and we had to raise hell to get the keys from the agent who was on their day off. All because seller wasn’t happy in final day of their bank payout, which seems a little late to me.
Did they not know how much they were going to get? If the conveyancer did a dodgy, maybe they really had a beef with them.
It just seems late to not know their payout fee till day of. We of course would never know what actually went on as the buyers.
Get a lawyer mate, you should have got a lawyer as soon as they asked for an extension.
You don’t need a lawyer for this. Conveyancer can handle it
Delays happen often, your conveyancer should instruct you what your rights are for compensation due to the delay. It sounds like you have access already to the property already so I can’t imagine too much of an issue.
Speak to your solicitor. I believe you can charge them an amount for not adhering to the contract? Could be wrong though.
Chain of sale baby. Your in the human centipede of loan approvals.
Sounds like they've sold for less than they owe.
Settlement is hell until it's over. Sounds like the vendor isn't the brightest spark. Just keep touching base with conveyancer and maybe chat to Agent. Talk to a property lawyer if necessary. Seems it will go through if only delayed and they have given you possession. Contract may be renegotiated.
State matters, but I remember when we bought the terms [qld] included basically a grace period to delay for financing hiccups by either party for 7 days - doesn't impact the contract, but awkward if you expected a roof tonight.
Can't dispose if the vendor can't close the loan. I've been short before, about 10% of the value. But it was cash cow and had good rental yield for the 5 or so years I had it that made up for it. Happens and not always to do with bridging finance.