Advice on extending settlement to buy OTP

Discussion in 'Legal Issues' started by BCR, 31st Oct, 2019.

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  1. BCR

    BCR Well-Known Member

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    Hi,

    I am posting this on behalf of a family member who is going through a difficult time being been made redundant 6 weeks before her OTP settles, obviously she is unable to acquire finance being unemployed.

    It's tough this time of year to land a new role, I have suggested she start exploring options around extending settlement for her OTP purchase in case she cannot find work in the required timeframe.

    Property is in Sydney, NSW an apartment in a block of ~60 with 8 still to be sold.

    I am assuming this would go straight through to a good conveyance to review, can anyone suggest an option or perhaps a reputable contact to go through (NSW, Sydney)

    Thanks in advance
     
    BCR, 31st Oct, 2019
    #1
  2. The Y-man

    The Y-man Moderator Staff Member

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    I am surprised that she hasn't sorted out finance until now with only 6 weeks to go .... or is this normal? How much payout did she get in relation to the purchase price? i.e. can she dramatically lower the LVR using the payout etc?

    BTW Use a lawyer for conveyancing in OTPs.

    The Y-man
     
    The Y-man, 31st Oct, 2019
    #2
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  3. Curious2019

    Curious2019 Well-Known Member

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    Could also consider selling by nomination if situation looked like not being able to get finance and they wanted to minimise the chance of losing their deposit.
     
    Curious2019, 31st Oct, 2019
    #3
  4. Scott No Mates

    Scott No Mates Well-Known Member

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    Not going to happen in NSW without double duty AFAIK.
     
    Scott No Mates, 1st Nov, 2019
    #4
  5. Curious2019

    Curious2019 Well-Known Member

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    Hmm, in VIC I think as long as you sell the property for the exact same amount as you paid for it, there’s no double duty. At least that has been my own experience.

    If there is double duty in NSW might have to do the sums on losing the deposit vs paying stamp duty and on selling. Might be better to complete the contract and lose a bit of money vs having developer chase you for losses if they sell below what the original purchaser was contracted to buy it for and losing more money...?
     
    Curious2019, 1st Nov, 2019
    #5