Had our offer accepted on a property with 6 week settlement. We then found out the vendor’s company which owned the property, was de-registered therefore hadto go through ASIC. Settlement was extended. Subsequently, this has gone on for over 4 months. Our loan contract has lapsed and we have had two fixed rate increases in that time. The vendor is a solicitor. He has agreed to cover the fixed rate increases andany other increase of .25%. He is now saying that ASIC approval may take a further 3 months. We don’t wont to forfeit thisproperty and as long as we are covered for interest rate increase, will hang in there. However, is this a normal situation for ASIC to take so long to re-register a company or does this guy have a hidden agenda? What would anyone else do in this situation?
Interesting problem?
Have you given ASIC a call to validate what the vendor says? You could explain in broad terms what is going on and they may be able to give you some feedback. Maybe ASIC is investigating the Company! Maybe they need to lodge many years of returns to be re-registered again!
What does your solicitor reckon?
Good luck
When a company is deregistered, all its assets automatically become owned by ASIC.
It takes quite a while to get ASIC approval to reinstate the company or to approve the transfer of the property to you.
I’d suggest you get your hands on the relevant ASIC fact sheets on deregistered companies.
The other thing is – was the company already deregistered when the vendor purported to accept your offer? If so, the contract may be void. You can find this out from an ASIC search.
If you’re dealing with a solicitor, I think you had better go and hire a good solicitor yourself. It’s foolishness to try to get into argy bargy with a solicitor if you don’t have a sufficient legal or business background.
Cheers
Elysium-MDIY Residential Property Settlements in WA – the book coming soon! When I can get my act together…
Thankyou for sound advice Yack and Elysium-M. Very much appreciated.[^]
All the best.
Let us know how it goes.
Cheers
Elysium-MDIY Residential Property Settlements in WA – the book coming soon! When I can get my act together…
Lamotte, an extended settlement can be a good thing! Except if it was going to be nicely cashflow positive of course – then you’ve lost out on that. If that’s the case, perhaps you should discuss your ‘losses’ with the vendor.
If it wasn’t going to be, or is going to be your PPOR, you may have had some increased value in the time, which could be good too.
Cheers
Mel
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