Hi, We bought a property off the plan that is now due for settlement. With the current market all propertys are lower in value causing us difficulty in getting finance. Could the following be a loophole to get us out of contract without paing the deposit out.
A letter from our agent to our solicitor (our agent referred us to this solicitor) said that we ” were obtaining a Bank Guarantee from their Bank Commonwealth for the full amount of the 10% deposit. ………………… I have not written the contract subject to finance because S and R are obtaining their Bank Guarantee from Commonwealth Bank who will only provide the Bank Guarantee to them if their enquiries indicate that S & R…… can service a loan to purchase the apartment at …….. when settlement falls due.The Bank Guarantee application is as good as a finance application.”
We never went through the Commonwealth Bank to get the deposit we had to get a deposit bond. Is there any way out of this at all. Thank youhi stitched. was the contract subject to finance?
have you sought legal advice from a legal advisor NOT associated with the marketers/sellers?
is the deposit amount the only risk for you?
how much has the price dropped?
if you were to do it again i expect you would seek independent legal advice? using the sellers/agent advisor would for me be a conflict of interest.
good luck regards.
this has been a huge learning curve!!
The real estate is a friend of ours didn't put subject to finance cause she said why bother buying the place then! She did state in contract she referred us to the legal advisors and why she did she said was because they had dealt with a number of people buying from the same property so all searches required had already been done. Sounded fine At the time.
We r currently waiting to see what our broker can do for us re finance we may just have to walk away better to lose the deposit than risk other properties we hold. Price was 372K with furniture package valuation 330. But even 2 other properties we have we thought the valuations would have been higher.
We are also in negotiations to reduce the original price due to poor valuation price. If we decide to walk away then I will get independant legal advice to see if we have any recourse.
the agent was not a friend in my opinion and has acted unethically and probably worse!
off the plan has had a lot of bad press and no wonder. i hope things improve for you.
regards.Actually I am also considering my options. As the FHOG finishes and if I sign the contract now – what would be the implications on the valuation of an Off the Plan property? I have been looking for properties in the Parramatta region and most are inflated by upto 50-60k! What should I do? The 24k is a great way to get into the market, however if the Bank doesn't value the property to be what we are paying then we are in trouble! :S
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