I have recently sold my home in Sydney Australia, and sold with an extended 12 month settlement.
I am not especially happy with this arrangement, and was bullied by my agent to accept, ie promises of renting out my home and gaining a 5% return in the year. Well, that never happened and i’m now being sent the invoice for the commission ($40’000) to come out of the 5% deposit which was released by the buyer.
My questions are
1. what options do i have in terms of buying another property? i’m currently without a mortgage and the Sydney property market is skyrocketing, Will i have to wait out the 10 months? the market continues to go up and up.
2. Do i have to pay the the commission now? my thoughts are that payment should be made on settlement.
any ideas are much appreciated
1. If you’re relying on the money from the sale of that property to purchase the next then you’ll need to wait a year.
2. It depends on what you agreed to. Have a look over the agreement you signed with the agent.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
you realize by selling with a 12 month settlement…….you probably just gave the buyer a 10%+ discount right?
and yes….its too late to do anything about this.
Settlement time is often a key factor in making a better judgement between two competing offers.
You should have kept times reasonable so you had cash in hand to work with.
30, 60, 90 days and thats it. You want the money that you get in the current market .. not the next.
And thats your current problem .. in a reasonably safe country where 70% of the time there isnt major monthly fluctuations ..
… well there is market action right now.
Always deal with your settlements so you are closer to cash (in other words get paid as soon as possible). Make sure you get your 10% deposit and dont fall for longer term negotiations either on settlement or deposit.
If he cant pay today .. there is a good chance he WONT pay tomorrow.
If the purchaser has not taken a caveat then you may be able to get finance using both properties as security – depends on what you have agreed to. If servicing is an issue then you may be able to use bridging finance as well.
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
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