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  1. #1
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    Unhappy Anyone with Real Estate - House Settlement Experience?

    Howdy!

    Wondering if there are any real estate parents who would be willing to comment on the following issue.

    My mum and dad sold their house beginning of August. The buying couple made the 10% deposit into their Solicitors account.
    Initially the settlement was meant to be end of August but due to the fact that mum and dad were looking at rental places to move into whilst they build their new house they extended the settlement date to yesterday.

    Settlement was meant to happen at 11am at the house and keys would be handed over after the inspection.

    The buying couple never turned up, their real estate agent called stating that their money is still tied up in a trust account and will be ready on Tuesday.

    Mum and dad's solicitor stated that this is quite normal and that because they have not settled the lawyer will charge them a 'default fee' of some sort which is about $190 per day until they settle.

    What are mum and dad's rights?
    How long can the buying couple delay for?
    What happens if they dont settle on Tuesday...or ever? The cooling off period has well lapsed.
    Can the couple not ever settle? If so do mum and dad keep the 10% deposit and can they re-list the house for sale as well.

    I'll be talking with mum and dads real estate agent on Monday afternoon but thought I would jump on here to get some friendly parental advice from those in the industry.

    Thanking you in advance!

  2. #2
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    I think they lose their deposit and you can re list the property. I'm sure there will be someone here with more expert advice though.

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    Default Anyone with Real Estate - House Settlement Experience?

    It depends on the state.

    In Queensland time is of the essence so not settling on time is a big deal. In NSW and ACT it is less so.

    Freaking annoying.

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    Default Anyone with Real Estate - House Settlement Experience?

    Your contract would stipulate that every day they don't settle they will be charged interest, this is usually enough to make most buyers settle on time!
    In my 22 odd years in real estate I've only seen a buyer pull out once ( she lost her job in between exchange and settlement and they did not have complete loan approval) so they lost the 10% deposit plus about $10,000 in fees/interest that went straight to the owner
    Most buyers won't want to lose their 10% so do try to settle but yes banks/solicitors some times stuff up settlement and they can be held up a week or two
    Your mum and dad will at least get the 10% if they never settle plus any interest accrued but it is unlikely the buyers would let it get that far!

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    Thanks Elijahs mum!

    Appreciate your comments. I just want to be in a position where I can re-assure them of what can happen and give them correct info.

    Quote Originally Posted by Elijahs Mum View Post
    Your contract would stipulate that every day they don't settle they will be charged interest, this is usually enough to make most buyers settle on time!
    In my 22 odd years in real estate I've only seen a buyer pull out once ( she lost her job in between exchange and settlement and they did not have complete loan approval) so they lost the 10% deposit plus about $10,000 in fees/interest that went straight to the owner
    Most buyers won't want to lose their 10% so do try to settle but yes banks/solicitors some times stuff up settlement and they can be held up a week or two
    Your mum and dad will at least get the 10% if they never settle plus any interest accrued but it is unlikely the buyers would let it get that far!

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    Default Anyone with Real Estate - House Settlement Experience?

    If the contract is unconditional (assuming it would be if settlement is due) the buyers must proceed with the purchase. They are liable to be sued for the entire purchase price if they don't settle.

    Interest on the overdue settlement is payable to the buyer per the contract conditions.

    I am the financial controller of a large real estate and often see settlements delayed due to banks / solicitors paperwork being misplaced / not ready etc.


 

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