Recommended strategy for my situation

Hello everyone,

Greetings!

Here’s the story. I am involved in a complicated deal. I bought a vacant land off the plan a couple of months ago. And the first mistake I made is I didn’t read the contract carefully and pick up the special conditions. Basically I didn’t realize the land is off the plan. The proposed subdivision was to cut about 10% of the current lot and add that up to the adjoining lot, so that one more lot can reach the minimum subdivision size. Anyway I only bought the post-subdivided lot, the 90% part. I didn’t know that subdivision hasn’t completed yet.

In the special condition, there’s a clause says vendor may rescind the contract if the subdivision is not done after 100 days. My settlement is 100 days as well, and the settlement date was yesterday. On Monday, my lawyer received a letter from vendor’s lawyer, saying Vendor is not gonna proceed with the subdivision any more and they allow me to settle with the whole land, but will be entitled to do the proposed subdivision after the settlement.

We notified my bank/mortgagee and the bank disagreed with this. Because they don’t want to give me the money and received the title for whole lot now, and later be changed to a smaller piece. That’d certainly hurt bank’s interest.

We passed on the info to the vendor’s lawyer. They express they understand the bank’s position and would come up with some options for me.

We were thinking of giving some more time for vendor to complete the subdivision if the council is still working on it. I called the council yesterday and find out the application is refused, due to not align with suburb characters. And I guess there’s no point of doing that.

So here I am. My bank is not giving me money due to the unacceptable post settle sub. The vendor don’t want to give up the 10% of the land even if the proposed sub is refused atm. And I, for the worst, can certainly tell the vendor to rescind the contract and walk away.

However, with the hope to all the experts in this forum, I wonder if there’s any strategy you can come up with to close this deal. I imagine the bottom line of vendor is either keep their right to the 10% lot, or some money compensation and give me the whole land.

Please feel free to advice!

Cheers