Hi all,
When I exchanged contract, my solicitor/conveyancer requested for a settlement date for 8 weeks (without consulting me before making the request to the vendor) instead of the usual 6 weeks. His advise was that with the Christmas & NY holidays, there maybe delays by the bank in releasing funds. So, this pushes my settlement date to mid-Feb, although I wanted it to be ibrought forward to mid-Jan.
My solicitor's wife is also my mortgage broker (and also helps out in my solicitor's office) and when I last saw her just before Christmas, she told me that my bank wouldn't have any problems releasing the fund in mid-Jan but the settlement date can't be brought forward because the vendor's bank cannot accept the earlier settlement yet.
I mentioned the last bit to the agent and she told me that it doesn't make sense as the vendor would want to have the settlement asap to payoff their loan (the vendor are also the developer of the unit). Added to this, the vendor has also sold many units in the block without any problems and she reckons my solicitor/broker is not telling the truth.
I tend to trust the agent more as I think my solicitor may have an interest in delaying settlement so as to protect his wife's reputation as a mortgage broker. Has anyone experienced similar problems and how should I talk to my solicitor/broker to find out what is really the truth?
I'm a bit annoyed and have contemplated changing solicitor + broker, but not sure if it'll scupper the whole deal. Any advise welcomed. Thanks.
xya
There can be delays over Christmas, but pushing things out to Feb is a bit much. Maybe it is your solicitor that is going on holidays until this period? I would just instruct the solicitor (your their boss!) to ask the other party to settle when you want. Ask them to do it in writing. The vendor's bank should be able to settle in a few days of being notified – unless the other party has the property cross collateralised and they need further valuations etc.
It shouldn't have any effect on your broker, and your solicitor should have the same amount of work either way, so I am not sure why they can't settle – but you have agreed to 8 weeks, so it is up to the other party.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Thanks for the response. Yes, you're right, my solicitor is on holiday until 12-Jan and perhaps there'll be a lot of work when his office re-opens.
The vendor has agreed to mid-Feb settlement in the contract, but I've asked my solicitor to request for an earlier settlement. I was told that we can always bring forward the settlement date. If we insist to bring the settlement date forward, how can I be sure that my bank would have the money ready at settlement? Otherwise, I'll have to pay a daily penalty, isn't it?
If your loan is fully approved and you have signed all documents and sent them back, then your bank should be ready to settle within a few days – although they usually want to allow around 10 days.
If your solicitor is back, then there should be no problem as long as the other party agrees.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Thanks again for your advice, Terryw. You've been very helpful.
Hi all,
I was supposed to have my settlement date brought forward but my solicitor informed me that the vendor's bank isn't ready for settlement. Is it possible for a vendor's bank not to be ready for settlement? Wouldn't the vendor prefer to receive money earlier?
Thanks.
xya,
The vendor probably would want the money early, but their bank would want a few more days interest too. There could be reasons why they are not ready such as not getting a discharge form signed by the vendor, not getting valuations done quick enough if the vendor has other loans cross collateralised etc.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Thanks for the explanation, Terryw.
You must be logged in to reply to this topic. If you don't have an account, you can register here.
