Conditions not met before deadline to go unconditional

[Rayandstew]

Hi there -

We are in a bit of a dilemma and unfortunately, we don't think we have the best of lawyers to help us!

We have made a conditional offer on a property in January! The contract is about to expire 30th April, and as far as we know, the seller wants us to go unconditional on that date even though the conditions have not been met. There is only one condition - The house gets code of compliance!

Seller is 80% there, council have been round, ticked off most of the boxes and it is about to get the code, however not by next Wednesday
The seller has been a bit dodgy (we think) by relisting it on Trade me again, just a week out from us going unconditional. We feel that she is getting ready to resell at a higher price if we don't go unconditional so we are feeling a bit pressured as we (and the bank) want the code granted before we go unconditional. But we don't want to lose the home.

We have put a caveat on the property, but fear that is not enough to actually seal the deal.

So our questions is, if we don't go unconditional, can seller walk away from deal, pay back the money from the caveat and just resell to another buyer at a higher price? Leaving us (nearly 5 months down the track) without a home to go to?

Thanks in advance, really could do with some good, sound advice

[Rayandstew]

Or....could we go unconditional on the 30th April, because the code of compliance is nearly 80% there, but hold back say $50K on settlement day until the code has actually been issued and we have the paperwork in our hands??

[Davo36]

Basically you either have to buy it or not.

You are trying to have a bob each way.

You now know the seller will not fulfil their condition. So you just have to decide whether you want to let it go, or buy it and do the rest of the work yourself. I don't see any way for you to buy the house at your agreed price and force them to get the CCC.

Unless the condition says something like "The vendor shall take all steps possible to ..." and you can prove they haven't. But even this will be very tricky.

[grip]

1) Assume vendor will not get the CCC in time.
2) work out costs of getting this yourself. And whether there are in fact issues arising and not council delays.
3) proceed (or not)

Obviously prices have gone up since January so I imagine the vendor would prefer someone else comes along with a higher offer.

Do note once you go unconditional you have to settle in full. You have no grounds to hold cash back as you knew CCC wasn't in place when you went unconditional.

[speights boy]

Do note once you go unconditional you have to settle in full. You have no grounds to hold cash back as you knew CCC wasn't in place when you went unconditional.

Does the caveat alter things at all ?

[Leftette]

I would buy it on the basis that you sound like you REALLY want it, and that you say it's 80% there and will be achieved, just not by the 30th. If you're that confident (assuming the remaining items on the Council's list are minor) then why would you not, all things being equal?

[speights boy]

Is there a bank involved, and are they all OK with buying as it stands ?

[Leftette]

You'll also need to inform insurance company - who should be ok with it, but they will want to know otherwise it would be an excuse not to pay. There are some on here who don't accept that it is a risk, but my opinion is why give the insurance people an excuse?

[Nice]

If the Bank wants the conditions met, there is very little chance they will budge from that; so if you agree to go unconditional, where you going to finance it from ? Quite simple stuff really, the bank will take all the emotion out of it for you.

[grip]

If the Bank wants the conditions met, there is very little chance they will budge from that; so if you agree to go unconditional, where you going to finance it from ? Quite simple stuff really, the bank will take all the emotion out of it for you.

I think you can defer settlement date to allow for the time required to get the CCC in order to satisfy the bank.
From OP's comments it seems it's almost there, and there could be an element of the vendor dragging her feet in order to force the OP to withdraw.

[grip]

Does the caveat alter things at all ?

I don't know what legal right you have to enforce this caveat post-unconditional date as I'm unsure of the terms of the deal.
If I was the vendor I would say sure I don't have the right to sell to another party pre-unconditional date, BUT you allowed the offer to lapse, therefore the caveat doesn't apply now.

[John the builder]

ring council and find out how likely getting the other 20% 'there' is?

sometimes producer statements are required an hard to get

how old is the house and what is the cladding?

[speights boy]

rayandstew.
The 30th has come and gone.....what happened ?