If I put 10% deposit down say $40K which goes into a trust a/c and then in 3 months before settlement sell it for $480K. The new buyer puts in $48K now and balance at settlement. Question is how do I get my profit $480-400 = $80K when the new buyer is only putting in $48K now and balance at settlement ?
Unfortunately you cannot get your profit until settlement. And you will not be able to get your deposit back until the property settles too.
Terryw
Discover Home Loans
North Sydney
[email protected]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
so that means the developers solictor could be holding three or foure deposits on each unit ?
No mcollins. The developer’s solicitor will be holding your deposit, and your solicitor/real estate agent will be holding your buyers deposit.
Cheers
Mel>>so that means the developers solictor could be holding three or four deposits on each unit ?<<
WWWWhat ? Are you selling one and the same property several times ?
I suggest that next time you put a condition into your contract of sale which states that the deposit is to be released to you upon exchange.
The buyer’s solicitor will probably jump up or down because his imagination is creating big mishaps in his mind.
You need to disclose in the contract anyway that, despite the fact that you are selling the property, you aren’t the actual owner yet anyway so it is a small step from there to get them to accept that you have already paid a deposit yourself.
If the buyer’s solicitor still objects, tell the buyer that you will only proceed on the basis of that condition being part of the contract and to tell his solicitor to either accept that condition or else go away.
You may also point out that you don’t want the point raised with your solicitor (thus probably increasing your bill) and if the buyer’s solicitor does so that in that case the deal is off.
You must of course be reasonable and provide evidence that you have actually paid a deposit yourself already.
A bit of posturing will go a long way and make things a bit more interesting.
Pisces133
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