Unconditional and then asked for extension

Discussion in 'The Buying & Selling Process' started by Wade 75, 20th Oct, 2016.

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  1. Wade 75

    Wade 75 Member

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    I have a contract on my property and the purchaser has continually asked for extensions which we have granted. This time the purchaser has gone past unconditional date and asked for another month which I am not willing to grant. Does the buyer forfeit deposit? If so, how do I claim this? I am representing myself in this sale.
    Thanks in advance for any advice.
     
    Wade 75, 20th Oct, 2016
    #1
  2. Scott No Mates

    Scott No Mates Well-Known Member

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    1. Get a solicitor
    2. Get the solicitor to issue a notice to complete
    3. Take the money and run (upon solictor's advice) - if it is Qld special rules apply and they will forfeit the deposit AFAIK. Don't be such a soft ****
    4. Is saving yourself $1500 worth the grief?
     
    Scott No Mates, 20th Oct, 2016
    #2
    Magoo, jim1964, Jimmy D and 4 others like this.
  3. Jamie Moore

    Jamie Moore MORTGAGE BROKER - AUSTRALIA WIDE Business Member

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    A one month extension is ridiculous.

    Agree with Scott 100% get a solicitor. It's a small outlay for such a large transaction. I couldn't imagine going DIY.

    Cheers

    Jamie
     
    Jamie Moore, 21st Oct, 2016
    #3
  4. Marg4000

    Marg4000 Well-Known Member

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    As said, get a solicitor NOW.

    Who is holding than the deposit?

    Was an RE agent involved? Usually they are entitled to their commission once the sale goes unconditional, another reason you need a solicitor.

    AFAIK you can refuse the extension, retain the deposit (who has it?) but you may be liable for agent commission (is deposit sufficient to cover it?).
    Marg
     
    Marg4000, 22nd Oct, 2016
    #4
  5. Terry_w

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

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    what state is the property in? You cannot just take deposit without notice - usually.
     
    Terry_w, 22nd Oct, 2016
    #5
  6. Colin Rice

    Colin Rice Mortgage Broker Business Member

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    Find out what the issue is? Im guessing its for a finance approval. Has the bank issued a conditional and waiting for those conditions to be met or are they wanting to apply to another bank cause current one said no which may indicate issues. Have they applied for finance.?

    Find the problem and see if you can offer a solution, if not aske for a finance decline letter and move on.
     
    Colin Rice, 22nd Oct, 2016
    #6
  7. jim1964

    jim1964 1941

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    After going through a similar scenario recently, the alarm bells should be clearly ringing.We were a bit soft,That contract cost us 7 weeks before we bailed and 3 potential buyers who were interested at the same time bought elsewhere.
     
    jim1964, 22nd Oct, 2016
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    Terry_w, Magoo and Perthguy like this.
  8. Magoo

    Magoo Well-Known Member

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    If the purchaser asking for this extension is a developer you need special conditions to tip in your favour during contract negotiations, otherwise they will continue to string you out. In this situation I would grant a further extension only if the purchaser commits to a larger deposit.

    Also make it clear if they fail to settle in the time specified they forfeit the whole deposit. You are not a bank & they need to understand this, if they treat you like one they need cough up for holding costs.
     
    Magoo, 22nd Oct, 2016
    #8