This bloke bought at auction, unable to get finance - ceiling 1.8m

Discussion in 'Loans & Mortgage Brokers' started by aroe, 9th Dec, 2016.

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  1. aroe

    aroe Active Member

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  2. Hwangers

    Hwangers Well-Known Member

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    ouch! that really hurts ... maybe settle using 3rd tier/private financing and on-sell to another unsuspecting/uneducated buyer , very sad
     
  3. Chris Au

    Chris Au Well-Known Member

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    Really unfortunate, if inspected, I thought the buyer may have felt a little claustrophobic in a unit with ceiling heights so low. Shows the value of DD, especially under auction conditions!
     
  4. Terry_w

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

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    At least he saved $400 on a building inspection!
     
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  5. Chris Au

    Chris Au Well-Known Member

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    Or maybe divert that amount into psychologist fees as he worries about what he has got himself in for....
     
  6. Perthguy

    Perthguy Well-Known Member

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    If Council has not issued an occupancy certificate, is the buyer legally obliged to follow through with the contract?
     
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  7. TroySeven

    TroySeven Well-Known Member

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    Are the agents partly to blame?
     
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  8. Perthguy

    Perthguy Well-Known Member

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    I doubt it but it is possible if they misrepresented the property. My brother sold a new townhouse in Melbourne with no occupancy certificate, so as far as I know it is not a legal requirement.

    Here is what happened:-
    1. the townhouse sold at auction with notification that there was no occupancy certificate
    2. the buyer agreed to a longer settlement while the occupancy certificate was issued
    3. my brother applied to council who inspected the property. Council found there was not enough storage and too much paving! o_O
    4. my brother organised contractors to rectify the issues but council would not come back to reinspect for 3 weeks
    5. the occupancy certificate was not issue prior to settlement. My brother was lucky - the market was increasing strongly at the time and the buyer was aware of this. Buyer was very nice about it saying just get it sorted out and let me know

    It was all resolved and settled but it was stressful for my brother. I found it odd that they buyer liked the property as is and paid a lot of money for it but council wanted more storage? o_O
     
  9. wombat777

    wombat777 Well-Known Member

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    Wow! Super-dodgy vendor and agents, but no excuse for the buyer's stupidity.
     
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  10. Cimbom

    Cimbom Well-Known Member

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    The low ceiling is even evident in the photos! I noticed it immediately
     
  11. Dmarkw

    Dmarkw Well-Known Member

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    I would have thought that if it wasn't legal height, they couldn't have legally advertised unit as having 2 bedrooms? Despite the stupidity would this not be mis-representation?
     
  12. Ace in the Hole

    Ace in the Hole Well-Known Member

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    Crazy thing is that there was likely another bidder involved in the auction :eek:
     
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  13. Gockie

    Gockie Life is good ☺️ Premium Member

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    And another crazy thing the buyer reached out for help from OzBargainers. ..
     
  14. Peter_Tersteeg

    Peter_Tersteeg Mortgage Broker Business Member

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    Any decent broker would know how to get this deal done. Not that any decent broker would really want it.
     
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  15. dabbler

    dabbler Well-Known Member

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    Will be interesting.

    What was supplied in the contract, it is either a legal place and a false ceiling, or illegal which means the contract is probably void, should be able to find a hole in it somewhere if they are all being shifty.

    Start paying for a solicitor.
     
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  16. dabbler

    dabbler Well-Known Member

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    lol...not always, I saw one guy bid against himself 4 times at auction in 10k lots....lol.....I also know for a fact he did not check any strata or anything else, nor that it was tenanted, when I was leaving he was asking me directions and which unit it was....
     
  17. Terry_w

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

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    Perhaps the buyer was short and didn't notice?
     
  18. euro73

    euro73 Well-Known Member Business Member

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    No val policy, anyone?
     
  19. DaveM

    DaveM Well-Known Member

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    Maybe he hit his price ceiling
     
  20. dabbler

    dabbler Well-Known Member

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    Short changed ;)

    If you bought this sight unseen, you would hit the roof !
     
    Last edited: 9th Dec, 2016