Hi all,
Im due to settle on a property tomorrow at 11:30 but apparently the vendors are not ready as the bank has lost the title. Since their bank and my bank are both the same bank, Ive been told that I can settle without the title and that the bank can put something in writing agreeing to locate the title or obtain a new one after settlement. Is this true? Has anyone had any experience with this? Is there any other options besides waiting till the bank locate the title? My conveyencer said that they had the same issue a few months ago with the same bank and it took 5 weeks for them to locate the title and settle. Any downsides to settling without the title?
All input appreciated.
Thanks in advance.
Hi
Not sure which state you are in but maybe contact another solicitor for a second opinion? or the REIQ or similar in your state for advice perhaps?If it goes bad..who is at loss..you or the seller..who would pay insurances if anything happened to the property ie WHEN does it become yours..on title, or date of contract? I have worked in Real estate (administration) in qld and there was NO WAY we would ever give out keys to new owners until we had confirmation from BOTH solicitors that ownership had changed hands…ie..the settlement had happened AFTER all monies had been paid over, then the title handed over also. A fine line I would say..but if were me..I would want to know 100% that it was MY property when I paid all my money over. Hope that helps. SOrry cant recall finer details but those contacts would be sure to know the bottom line surely. If the bank say is ok..maybe get them to sign a stat dec perhaps. I am also a JP and you would have a legal binding at least if went bad. Also would be a sign of good faith..but if they wouldnt do that…ask yourself why not?
Good luck!HI again
Forgot one other comment…on the contract..what does it say about the transfer of title being necessary for settlement? Check the fine print..then maybe a new contract signed or altered as worst scenario PRIOR to handing over the dollars??
lopetha wrote:Hi all,Im due to settle on a property tomorrow at 11:30 but apparently the vendors are not ready as the bank has lost the title. Since their bank and my bank are both the same bank, Ive been told that I can settle without the title and that the bank can put something in writing agreeing to locate the title or obtain a new one after settlement. Is this true? Has anyone had any experience with this? Is there any other options besides waiting till the bank locate the title? My conveyencer said that they had the same issue a few months ago with the same bank and it took 5 weeks for them to locate the title and settle. Any downsides to settling without the title?
All input appreciated.
Thanks in advance.
Is it essential that you settle tomorrow? If it's an IP then just delay the settlement until they locate the title and everything can be done as it should be. Would you really trust a bank? If it's going to be your PPOR or for some other reason you need to settle then you may decide to take the chance, but these things seem to have a way of going pear shaped.
Sandy vg, makes a good point in seeking a second opinion from a legal body if you are not getting sound advice from your conveyancer ….. find a solicitor with property experience and pay a few dollars to find out exactly where you stand.
Martin
It is an IP so no real urgency to settle today. I spoke to the conveyancer and the last time this happened settlement was delayed for 5-6 weeks. What if I decide not to settle and wait for the bank to get the title deeds? Can the vendor cancel the contract or anything? Ive already forked out the money for the deposit and also for the bank fees, stamp duty etc so am losing out the interest I could have been saving on my other loan.
I think the issue is more with the Vendor than you as the purchaser.
As a buyer you have the same right as the seller when it comes to Settlement and if they cannot produce the Title Deed then you can look to sue for Specific Performance.
Tell them you will be charging a default interest rate as per the Terms fo the Contract. (In most States the default rate is shown on the purchase contract or if not the Standard Law Society Rate applies). Do not settle without a Title and seek compensation for your incoenience or loss.
I cannot believe your Solicitor os not putting them on notice on this one.
Richard Taylor | Australia's leading private lender
Luckily I got a call not so long ago saying that the vendors bank has located the titles and settlement will go ahead today.
Thanks for all the input guys. Much appreciated.
now that is the best solution
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