And the original loan interest would generally be deductible – but only on the lowest loan balance. So if the loan reduced lower than $300,000 and you topped it off with redraw then the interest on this second part would not be deductible

It is interesting because agents doesn't usually get paid their commission until settlement.

Freddie, how did you find this property and was it marketed this way from the start?

This will offer virtually no asset protection at all.

possibly

Ah, give em a new deposit book to make it easier to pay the rent!

I think you should find out where that money is located asap. Who did you pay it to and what does the contract say about the deposit.

You may be able to terminate the contract, or rescind it, and get back that deposit.. Have a close read of the whole contract and see what you can find.

Did the lawyer explain about priorities and that your interest would be secondary to any mortgage? You might have a claim against the lawyer – don't worry this is what they are insured for.

I assume both mortgages were in place before you placed your caveat? (otherwise they probably couldn't have mortgaged). Di you lodge a caveat immediately on exchange of contracts?

When you say you have a licence agreement – what does this cover and did you also have a contract of sale for the land?

What state is the property?

Sorry Freddie. Don't think you can do much. Probably best to seek legal advice, and take it from there.

Maybe best to stop paying the vendor now. Write to them and ask them to provide a pay out figure and ask them how much is owing secured on the property – not that they will tell you the truth.

Doesn't sound good.

The bank will call in the guarantee for the business – if they actually owe money, it could be undrawn (unlikely!)

If the business failed then they are likely to be in trouble. Even if the are not pursued for company debts they will be for this loan. They are probably unlikely to have the cash to pay for it. Depending on their financial situation they may default on the loan for the property too. If they have other assets they may use these to stay afloat or pay out the overdraft.

If not then the bank will likely sell the house to recover their debts. You could be first in line to buy but the bank will want the full amount owed to them plus costs.

The bank's claim on the house will take priority over your claim I am afraid.

The vendors won't stop settlement, but their lenders will if they have used the property as security with a mortgage.

A mortgage lodged before a caveat usually takes priority.

Is the property owned b the company?