Hi i have recently sold my property the contract went unconditional yesterday as the purchasers were meant to pay the depoist 10% but they did not! . Can someone tells me what happens if it gets to the settlement date and the purchasers still have not paid ? Because the contract is unconditional does that mean they own the property without paying a cent ? My layer tells me i cannot get out of the contract even thought the purchasers have not paid for the property this seems wrong to me , how can someone not pay for a house and yet now they own it! Any legal advise for my situation would be appreciated
What state?
If NSW, then under the standard contract the seller can terminate it if the deposit is not paid (cl 2.5). But the contract would still be binding.
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
state is Victoria , i have done alot research over net last few hours and found alot info suggesting that i can get out of the contract as the sellers have defaulted on the contract by not paying the deposit i found info here http://www.davekanizay.com/?p=220
"If a deposit or any part of the deposit is not paid on the day it is due, then the Vendor is entitled to immediately terminate the Contract without notice."
So i dont know why my lawyer would not tell me that , he made it out to me that i could not get out of the contract once it goes unconditional but i am pretty sure i can now …. i think i just got really bad advise from lawyer which freaked me out
You will have to read your own contract to see what the terms are. This term could have been changed. (unlikely)
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
(Terry, correct me if I'm wrong)..
A contract is only unconditional after all the terms have been satisfied. If the deposit was a term in the contract that hasn't been satisfied, then the contract can't be unconditional yet. Check the wording on the contract.
Tyson, even if the contract is binding, regardless of the deposit situation, your solicitor cannot settle the property until all conditions have been met eg payment of deposit & balance and any other special conditions which may apply.
You would not sign the transfer form until you know they have met the conditions of the deposit.
If the property goes the whole period to settlement and the buyer does not fork out all of the funds, then your solicitor will have to issue a notice to complete before you can repudiate the contract.
thanks for all the information guys , as it turns out my situation is ok , the purchasers came good with the deposit this morning….
I think the contract would be still binding in NSW on the seller. I would have to look at the terms again and haven't got one handy..
Good Tyson – better late than never!
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
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