Delayed settlement due to Banks & Broker - options?

Hi Folks,

We’ve just bought a family home in Brisbane and are going through the settlement from hell.
Initially we had issues with our conveyancers who were uncommunicative and didn’t follow instructions. Now we’re 5 days past settlement and have discovered issues with the bank.
Essentially, my partner and I are leaving our banks and going to a third lender with our existing investments in order to purchase this home.
We submitted our documents weeks ago, however apparently the loans haven’t been discharged and some of the paperwork was incorrect. Again, we’ve found this out 5 days after settlement was originally scheduled.

My question is: who’s responsibility was it to ensure everything was ready for settlement and how was settlement able to be scheduled without the banks being ready?

We’ve already lost $3,000 in penalty fees so advice would be appreciated!

Many thanks

 

Your responsibility first up.



But it depends on what was wrong. I had a client print a mortgage double sided and sent in. Delayed settlement by 5 days but the bank reimbursed him for costs as he blamed them for the delay.

 

Hi Terry, the long and the short is that we sent the documents to our broker at the beginning of the month. He said that he would ensure they were completed correctly and send them through to the banks. A week later we resent them at his request.

We later discovered that some of the documents that our new bank had to be ‘originals’, however this wasn’t indicated on the document check list and no one told us until last week. We also repeatedly chased up a document that was missing from the checklist... a document our broker didn’t send until last week.

He also forwarded our discharge to the banks on Monday last week, even though settlement was due on Friday. The new bank then sent the discharge forms onto our old banks on the Thursday. Our old banks advised us on Tuesday they never received them, so we’ve spent the last three days on the phone, chasing discharges and praying for the best.

 

See my thread on banks delaying discharge.

In 18 years as a broker I cannot think of any time original documents needed to be provided to a bank, other than certificate of title

 

Registration of mortgage? This one is a pain in QLD.

 

Yes mortgages need to be originals