#RealEstateDilemma š”š° #SettlementIssues š¤
Hey everyone, I need your input on a tough situation I’m facing with my property sale in Sydney’s inner west. Here’s the deal:
– Sold my property for a whopping $4 million at auction
– Buyers from Malaysia have only paid half the deposit and delayed settlement for 7 months
– Now asking for an additional 3 months to secure a home loan
I’m torn between waiting it out or canceling the contract to resell. What would you do in my shoes? Would it be wise to give up that extra $2.5 million or take the risk of reselling at a potentially lower price?
Considering my family situation (wife with a permanent injury and kids entering university soon), I could really use some sound advice. Share your thoughts and any possible solutions you might have! š¤·āāļøš
Looking forward to hearing your insights! š #PropertyAdvice #RealEstateWoes
This probably should have started to deal with this when only 50% of the required deposit was paid. Enforcing the contract, keeping the deposit paid, the amount involved etc you need to engage the services of a lawyer as soon as possible.
Do they meet the foreign buyers regulations?
You need to engage a better lawyer and look to cancel the contract as well as sue them for the difference in the sale price. You have a contract. Why you you let it get to 7 months?
Put the house back up on the market, choose what you want to do with the deposit. But they had their chance.
Money laundering
Ifffff you did crash their contract and relist and sell at market, and kept the original deposit, you’ve still done better than list price alone.Id go back seeking interest on the outstanding amount and not chance waiting for them to wait and still not settle.
I would ask for $500k to extend or put back on market
You have a conveyancing lawyer for this.
How does someone get to the point of owning a property worth $4 million, but still think itās remotely worthwhile coming to a social media platform for advice rather than just going to their highly paid conveyancer??
Humble brag
Did you (via your conveyancer) agree to reduce the deposit by half? Otherwise arenāt they already in breach of the contract?
We recently sold and our lawyer advised against agreeing to the buyer paying anything less than the full deposit beyond the end of the next business day after exchange of contract.
Sounds like they were bidding in Malaysian Ringgits lol. Thinking they got a steal.
This is why conveyancing services exist and charge the money that they do, given that, even if you got perfect advice from strangers on the internet, would require people who understand the law to go ahead and do the law related things
Sounds like they are awaiting a DA or something
Iām a little confused here. Why has nobody queried the fact that they āpaidā $4M for a $1.5M house? None of this makes sense.
They seem to have massively overbid and now canāt pay. The fact that they have delayed for 7 months and now are asking for another 3 to try to secure a loan is comical.
Iāve lived in Japan and if this were Japanese Iād say they donāt want to be the ones to break the contract and would prefer to delay until the end of time rather than do that, But I donāt know Mayalsian culture ā¦. Anyone want to chime in?
Thatās what you get for selling to foreign investors, instead of a local family or someone in aus that needs a home
Your immediate goal should be getting the remainder of the deposit from them and consider that you may never see the full sale price. If the contract falls through, then technically you can sue for the difference between contract and eventual sale prices, but the buyer being overseas casts some doubt on litigation being successfully enforced.
I would let them know that yes you can agree to the three month extension, but that in order for that to happen the remainder of their deposit needs to be paid within 7 days.
If they pay up, but then ask for a further extension, ask them to increase the deposit again as an act of good faith.
I’m not sure on the legalities of holding another auction prior to the original/amended contract being cancelled, but I’d be talking to your agent about planning another one for 14 days after the extension. Caution- there is a risk you’d be required to pay the real estate agent a second set of fees.
Is there any way you can reach out to the second bidder to see if they’re still interested in the property?
Sounds to me like the property isnāt worth $4mil, and they have massively overpaid for whatever reason. The owner has $200k (assuming half of 10% deposit) that you can keep if they break the contract, enforce the contract, they wonāt pay, you relist and get a real value. Move on, donāt waste money on a lawyer to chase extra money you will likely never get from a foreign investor.
Ask for the second half of the deposit that you can keep for them to get that extra 3 months.
WTF…. how are you letting them get away with only paying half the deposit, and delay settlement for this long… when I purchased a (much much cheaper property) there were all sort of penalties should I have needed to delay for even a day or two (last minute issues with my loan). But your contract should have clauses for all this – and not sure how it has gotten this far without them even paying a full deposit. Speak to the professional you are paying to sort this mess out.
Get the lawyers to force them along. Theyāre taking you for a ride. The interest alone is insane on that amount to squander.
You have a house you’re selling for four million bucks and you’re too tight to ask a lawyer this question? š
Iād just worry about getting the whole deposit first.
Grant them the extension on the premis that pay the full 10% deposit.
Or issue them a notice to complete and make the executive decision in another month once they are liable for the penalty interest.