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.

 

Key takeaway -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.

Leave a Reply

Your email address will not be published. Required fields are marked *

Post comment