On sell before settlement

[pward]

I have purchased a property & am looking at on selling it on to my brother on the same day as I settle with my vendor, how is this done in a legal view? does the money go from my brother to my lawyer then on to my vendor lawyer? Any feedback would be appreciated

[Dean@Massiveaction]

Your lawyer will sort it, it's called a double settlement.
Just FYI if your brother is getting finance no bank in the country will finance double settlements at the moment. If the vendors name is not on the title, they will decline finance. So you may have to settle it yourself then sell it to your brother the following week

[ecoeco]

Your lawyer will sort it, it's called a double settlement.
Just FYI if your brother is getting finance no bank in the country will finance double settlements at the moment. If the vendors name is not on the title, they will decline finance. So you may have to settle it yourself then sell it to your brother the following week

What makes you say that? I settled a property that was bought as a double settlement (via a property finder) on 30 Jan. Finance was from BNZ - no problem at all.

[Dean@Massiveaction]

Maybe non broker banks are different or you got approved prior to the change. It's currently a big problem. Non broker banks might be more lenient. If BNZ will do it then great.
It has only recently changed so check with this one and definitely use BNZ again.

[pward]

Anyway I can on sell it to him with out actually getting the finance & settling myself?

[Dean@Massiveaction]

Yes absolutely, just make sure he can settle. It's common, no problem.

[wildthing]

As long as you are certain he can, and will, settle.

[ecoeco]

Maybe non broker banks are different or you got approved prior to the change. It's currently a big problem. Non broker banks might be more lenient. If BNZ will do it then great.
It has only recently changed so check with this one and definitely use BNZ again.

Thanks for that - good to know. Finance was approved in Dec, so I guess this was before the change.

Pward, this is common but you need to be careful you don't end up having to settle if your brother can't get finance.

[motivated]

Onsold one where NZ home loans were the funder for the end purchaser ( Sept 2008 )
Why dont you just assign the contract and save all the extra legal cost involved in double settlement

[pward]

thanks for that! When he applies for the pre approval would he submitt both sale & purchase agreements to the bank or just the one between him & myself?

[pward]

What do you mean by assign the contract Motivated?

[motivated]

If you assign there is no need to have a second contract--your brother takes over your contract--you may need a document between you and your brother recording that he is taking over your contract-- as the bank may want to see evidence that you have assigned the contract

[Dean@Massiveaction]

He's only buying it from you so he only uses his S&P. Good point, assigning the property is easier.

[fpl]

Maybe non broker banks are different or you got approved prior to the change. It's currently a big problem. Non broker banks might be more lenient. If BNZ will do it then great.
It has only recently changed so check with this one and definitely use BNZ again.

What makes you claim that? How many times have you seen a decline letter from a lender with the reason given "double settlement"?

If the deal is presented truthfully there should be no problem at all. (Assuming everything else stack up)

[Stevegoodey]

I've done a couple of double settlements since December and I haven't had any problems with the banks.