Title not updated 1 week before auction

Discussion in 'Legal Issues' started by Bill s, 9th Sep, 2016.

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  1. Bill s

    Bill s New Member

    9th Sep, 2016
    Hi all.

    I am new here and have only ever owned 1 property before.

    My partner and I are intending to bid at an auction next Saturday (17th September). We have been waiting for the section 32 statements and got them yesterday.. Our solicitor has reviewed them and suggests we request an updated title search as the subdivision is not visible on the title.. it's just shown as one property.

    I rang the agent and she says the titles are on the way and hope they will be here before the auction, otherwise the auction will proceed with a clause subject to titles being delivered in the coming weeks.

    It's strange to me.. I can't imagine the bank being willing to approve this so is it a risk to purchase at the auction?

    What's the worst that can happen?

    I am asking my solicitor the same questions but I wanted to see if there was precedence for this sort of thing

    Thanks in advance

  2. Peter_Tersteeg

    Peter_Tersteeg Finance broker and strategist Business Member

    18th Jun, 2015
    Melbourne, Nationwide
    The banks usually do their own title search, so it would hold up the finance.

    If you're successful at the auction, make sure the special conditions specifically notes receipt of the updated title. The bank will see this and issue their finance with a 'subject to' clause. The updated title would need to be supplied for them to fully proceed on the loan.

    Also make sure the special condition notes plenty of time between when the issue the title and the actual settlement. You don't want them to issue the title 2 days before the settlement date, then charge you penalties because everything else couldn't be arranged in time. I'd suggest a 3 week period. Get your solicitor to review the clause.
    Last edited: 9th Sep, 2016
    Bill s likes this.
  3. Terry_w

    Terry_w Structuring Lawyer and Finance Broker - all states Business Member

    18th Jun, 2015
    The sale would probably be subject to the granting of subdivision approval. If this doesn't happen the contract will terminate.

    But it may also cover variations to the draft plan. So what you see may not be what you end up with - seek legal advice.
    Bill s and Perthguy like this.

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