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Settlement delays

Discussion in 'Real Estate' started by Muzza, 16th Jan, 2012.

  1. Muzza

    Muzza Active Member

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    Hi,

    I recently put a contract on a PPOR in Brisbane which has a tenant in it with a lease until the end of the year. I stated that I wanted to move in so the tenancy details were left blank.

    The vendor now is delaying settlement as the tenant is reluctant to move out (despite the insistence of the REA that this would be done) which is causing me some issues as I'm already paying interest on the mortgage (due to it being a substitution) as well as rent where I am at the moment. I can't afford to continue to do this indefinitely so am looking at my options.

    Vendor has already said that they will not pay any sort of penalty for settlement delays so I'm seriously considering terminating the contract. My understanding is that this is possible as she is in breach but does anyone know if there is a process such as a notice to settle or similar that I will need to complete before doing this?
     
  2. Jacque

    Jacque Team InvestEd

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    Do you mean the box on the front was marked "vacant possession" or "subject to tenancy"? Just after some clarification here so we can help.


    I'm confused here- how can you be paying interest on a mortgage that hasn't started yet? Until a property is settled the mortgage payments aren't started. Also, if the vendor is delaying settlement this indicates to me that you must have signed a contract subject to vacant possession?

    I'm not as familiar with QLD contract laws however here in NSW you can only issue a notice to complete (which gives the vendor 14 days to settle) once the original settlement date and come and gone. The best person to speak to here really is your legal representative.
     
  3. Muzza

    Muzza Active Member

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    We are with the major conveyancing firm in Brisbane and to be honest they have been next to no help, have finally gotten out of them today that they will schedule a settlement and when the other party cannot complete then they will complete a 'tender' which will terminate the contract? They cannot tell us if we will be liable for anything or get our deposit back if we do go down this track.
     
  4. Terryw

    Terryw Well-Known Member

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    Thats what you get for using a conveyancer. What on earth is a "tender"?
     
  5. Muzza

    Muzza Active Member

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    No idea either, I intend on finding out today...

    Any recommendations for a property solicitor in Brisbane? Might well need one before this is finished.
     
  6. vanessa

    vanessa V J Tait & Associates

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    I am sorry Terry, your comment is very critical. As a Licensed Conveyancer with 25 years experience I have often seen solicitors make huge stuff ups also. Also, Conveyancers are illegal in Qld so whilst it states a coneyancing firm, it will be a solicitor that is in the conveyancing firm!
     
  7. vanessa

    vanessa V J Tait & Associates

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    Hi Muzza,

    I am a licensed conveyancer in Sydney. I understand your frustration, unfortunately Qld conveyancing is very different to NSW conveyancing and notices to completes etc are not necessary available to you.

    However, I note you state that the tenants lease does not expire until later in the year. If the laws are similar to NSW then it would be very difficult for the Vendor to get the tenant to vacate as they have a current lease that has not expired. They are not on a month to month.

    I would suggest you make an appointment to meet with your conveyancing firm (I suspect they are solicitors as Conveyancers are not allowed in Qld as far as I am aware) and have them explain the whole situation to you. Dont allow them to fob you off with a phone call or a letter, you need to have a face to face meeting so that you can get proper advice.

    Good luck.
     
  8. Terryw

    Terryw Well-Known Member

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    Yes, apologies Vanessa. I agree there are plenty of good conveyancers out there who know more about property than the average solicitor.