Property not settling-unit-Townsville

Hey everyone from PC.
I'm still in the process of setting on a unit in Townsville where I have just granted the vendor their second two week extension. In theory it doesn't really bother me because I still have the property that I want locked in but haven't got to pay the mortgage on it yet.
The vendors bank won't release the title on the property and that's why it still hasn't settled yet. I know that they want to settle, but I'm afraid they just might not be able to.
If it falls through again I think I want to drop it and get another property in the area while I still can.
What should I do if it falls through again? Is there any way I'll be able to claim for the money I've lost because of it, eg-building and pest inspection costs, building insurance premium and solicitors fees that I've been told I'll still have to pay if I back out.

Thanks. Rob

 

Assuming the vendors bank will not release the title as the property is held as security against other assets. If this is not sorted in two weeks, it is unlikely to be sorted anytime soon.

Why would you have building insurance if it's a unit? Surely that would be covered by body corporate.

Also, of cause you have to pay solicitor fees. They provided a professional service and are entitled to be paid for the work they have performed.

In relation to claiming compensation. Why not ask your solicitor?

 

@BarneyRubble I don't think it's held as security against any other assets, but rather they're selling it at less than half the price they bought it for. They're still organising the difference of funds of what they have owing to what I'm paying for it.

It is covered by body corporate, but I was told by my solicitors that in QLD I need to have my own insurance over the property as I'm liable for it once I've entered the contract. It's to prevent buyers being able to back out so easily if something were to happen to the place in the interim period.

And as for the solicitors fees I did assume it was just like that. But there's no harm in asking right.

 

Even though you have already posted it I was thinking the bank is waiting for all their money before they release their security.

E.g. They gave 200k to the vendor and you are paying 100k and the vendors hadn't paid any interest, the bank is still owed 100k and will not release it until it is paid.

If the vendor cannot come up with the difference this could be either cashing in assets, taking out another loan (e.g. personal or could be another loan again another property), gifts from people or just saving up money (doubt this one in 2 weeks).

If they are unable to make the difference to release the title, you will be unable to purchase the property and the bank will repo the property along the vendor's other assets to pay back their debt or the vendor could just keep paying the mortgage and the bank probably wont care but this doesn't end up in a sale.

Sucks yes but the bank had an interest in the property well before you did. All your fees would need to be paid including solicitors fees and you maybe able to get your money back however if I was you I wouldn't as you would be using good money after bad. As in better to take the 1-3k hit now rather than spend 5k trying to get it back and find out the vendor has nothing.

I pulled out of a contract earlier this year as there was a B&P issue, still had to pay about 3k all up but it was much better than having a 50-60k expense to fix the issues when the vendor was only going to reduce the price by 20k.

 

Hi Rob, how this solved at last?