has this happened to you?

Discussion in 'Loans & Mortgage Brokers' started by Bean27, 11th Mar, 2021.

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  1. Bean27

    Bean27 Well-Known Member

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    In the process of buying a property and it has been 83 days since the offer was accepted and still no settlement. Settlement was booked for 26th of Feb and the hold up has waiting for the discharge paperwork for the sellers mortgage to get processed. My Conveyancer seems to think there's nothing he can do but keep calling the opposing sides lawyer. This seems a very bizarre situation to me but i'm a newbie. Is this normal?
     
    Bean27, 11th Mar, 2021
    #1
  2. Lindsay_W

    Lindsay_W Well-Known Member

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    This isn't normal but it does happen sometimes unfortunately not much you can do from your side to speed things up.
    If you're using a broker for your purchase they might be able to contact the outgoing lender via their BDM to expedite the discharge, it's a long shot though, lender needs to be one they're accredited with.
     
    Lindsay_W, 11th Mar, 2021
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    Bean27 likes this.
  3. Jamie Moore

    Jamie Moore MORTGAGE BROKER - AUSTRALIA WIDE Business Member

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    It happens - but two weeks is stretching it.

    Is it an owner occ? If so - can you ask for access to the property before settlement?

    If it's an IP - I wouldn't worry too much about the extended period of no interest being paid :)

    Cheers

    Jamie
     
    Jamie Moore, 11th Mar, 2021
    #3
  4. Bean27

    Bean27 Well-Known Member

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    It is an investment, i'm still paying repayments on the equity loan though. I think the thing that annoys me is it had to be rented before settlement and the tenant moved in on Jan 25th. So they have got 5 weeks rent. It makes me think they are delaying it on purpose
     
    Bean27, 11th Mar, 2021
    #4
  5. Scott No Mates

    Scott No Mates Well-Known Member

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    The conveyancer needs to wait 2 weeks post the original settlement date before a notice to complete can be issued. 26/02 - 11/03 is not 2 weeks (yet).
     
    Scott No Mates, 11th Mar, 2021
    #5
  6. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

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    Your solicitor and theirs will adjust any rents paid to the vendor or their agent in advance at the date of settlement so its paid to you. You only own the right to rental income from the settlement date. Your solictor should also ensure the agent transfers the landlord rental account to you on the settlement date too. eg If rent is paid the next day its yours, not theirs.

    Does you contract contain a delayed settlement penalty provision? ie they pay you (reduces the price paid) I have seen cases where "interest" may apply for every day that is settled late. Usually from the notice period expiry.
     
    Paul@PAS, 11th Mar, 2021
    #6