Hi folks
Recently come across a deal where the property is marketed 10-15% less than market value. I did not get catch by paying a 0.25 for cooling down period. Indeed, I have the contract well examined and fully verified the title holder (a company)and strata and find that the property title holder is in very bad financial condition and owning council and strate over a year of fee. The property also refinanced to the max. I did not take the advantage to push further down the price but proceed to see whether we can close the deal. However, with all other terms settled, the vendor raised a new term which insisting on release of my deposit for their use and my solicitor found out that they really have the plan to retransfer the deposit to a 3rd party. It is all but a schema! I told the vendor to get lost and wish them luck to find another unaware buyer!
Hiu
I don’t understand what the scam is here? Can you explain further why if the deposit is transferred to a 3rd party you can’t settle on the property.
Twice now when dealing with distressed vendors we have had to release the deposit early. Once was so their bank would release the mortgage and the other time was so the vendors wife could get an operation. Both properties continued to settlement with no problems and the deposit I presume was given to a 3rd party.
What if the title holder, which is a company, file a bankrupt during the settlement period? I would allow the release to the title holder, a person, given my favourable terms, who simply like to use the released deposit for their new home purchase.
I wish I have better luck next time.Hiu
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