Problems when Selling a Property
The purchaser refuses to settle
The purchasers are entitled to undertake a final inspection of the property shortly before settlement. If they are unhappy with this inspection, which may be for a variety of reasons, they may refuse to settle until the issues have been resolved. At this point, you will need your conveyancer to assist you to resolve the issues and if necessary, enforce the rules of the contract.
Your bank is not ready to settle
Many home owners have a mortgage on their home which must be discharged when the property is sold. The discharge process is undertaken by your bank and can often be quite lengthy. If your bank has not received all the required documents or you are yet to complete a task required by your bank, they may not be ready to settle on the scheduled date.
The purchaser isn’t ready to settle
Obtaining a loan (mortgage) to purchase a property requires the bank to prepare documentation for the day of settlement. If all the bank’s requirements have not been met, the purchaser will not be able to complete the purchase on the settlement date. As the seller, you may then be entitled to charge interest on the unpaid amount. Your conveyancer will be able to ensure, if applicable, this penalty is enforced.
Problems when Buying a Property
Your bank is not ready to settle
As discussed above, if you or the bank has not met all the requirements to be ready for settlement on time, you will not be able to take ownership of the property on the scheduled date. In addition to any problems this may cause with your living arrangements, you may also be liable to pay interest on the amount you owe the vendors (sellers). It is important that you keep in contact with your conveyancer throughout the purchase process as they will be able to ensure all the required steps have been completed within the correct timeframe to give you the best chance of completing the contract of sale on the scheduled date.
The property is not in the same condition as when you signed the contracts
You conduct a final inspection of the property and find it is not in the same condition as when you signed contracts to purchase it. As the purchaser you have certain legal rights under the contract of sale. Your conveyancer will be able to advise whether you have the right to postpone settlement to resolve the issues and assist you through this process.
Ensure you are in contact with your conveyancer throughout the entire transaction. They have the knowledge and experience to guide and assist you to successfully complete your sale or purchase, on time, and as smoothly as possible.
Alina Cooper is the owner and principal of Complete Conveyancing New England. Having spent her life in regional New South Wales Alina is passionate about country life and what regional Australia has to offer. This made the decision for her to commence her own business in Armidale an easy one.
Her life-long attraction to all things legal led Alina to completion of her studies as a conveyancer and the establishment of Complete Conveyancing New England.
Alina is a Licensed Conveyancer – with a full/unrestricted licence, Justice of the Peace, and a member of the Conveyancing Institute of Australia.