I can't settle an off the plan property

Discussion in 'The Buying & Selling Process' started by Joey20, 23rd Dec, 2020.

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  1. Joey20

    Joey20 New Member

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    Here is the story:

    In 2017 I bought a property off-the-plan in Olympic Park (NSW). I was pretty freaking excited and proud of my achievement! Ahh the optimism...

    In March 2020, just in time for finance, and ready to settle on August. However, it was valued $210k less than the purchase price. Also, I was redundant on April as COVID19. So I can't afford and pay the gap for settlement.

    My solicitor is going to send a notice to the vendor's solicitors noting that I couldn't get finance and that we request a deed of rescission, with them keeping my deposit and not chasing me for anything else.

    Figure Crossss for a good result.

    TLDR: what would you do with an Off the Plan property you can't settle?

    Pls let me know If anyone has similar situation.
     
    Joey20, 23rd Dec, 2020
    #1
  2. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    Terry_w, 23rd Dec, 2020
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  3. The Y-man

    The Y-man Moderator Staff Member

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    Ouch!!

    Was it a 10% deposit? Hopefully they'll be happy with that - they may want a bit extra for remarketing etc etc

    The Y-man
     
    The Y-man, 23rd Dec, 2020
    #3
  4. Joey20

    Joey20 New Member

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    Joey20, 24th Dec, 2020
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  5. pfbs

    pfbs Well-Known Member

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    Another strategy to consider: reval.

    It sounds like the OP got the valuation done at the very bottom of the market, literally right when the pandemic was kicking off. I bet that 200k undervaluation is now only like 100k.
     
    pfbs, 24th Dec, 2020
    #5
  6. Trainee

    Trainee Well-Known Member

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    Op, have you found a job yet? How much is the purchase price?
     
    Trainee, 24th Dec, 2020
    #6