Purchaser NOT serious about settling the property --Your Advice Pls

[Blackdiamond]

I believe that the purchaser of my property is not serious about setting the property. Initially On settlement date, the Purchaser requested for seven days
extension to complete the settlement, Once we reached the 7th day the purchaser lawyer mentioned that the purchaser is unable to settle the property and we served 12 working day's notice to complete the settlement. On 12th day the purchaser lawyer is requesting to extend the time to get the finance sorted.

I am not sure now if the purchaser is really serious about the settlement and what are my rights here as a vendor. I am paying lot of interest on my mortgage because of the delay in the settlement. Please advice what are my rights ...Just to let you know this was NOT a private sale. It has gone through real estate agent and proper S&P.

[donna]

Hi Blackdiamond,

Read this discussion - it's a similar situation to yours.

cheers,

Donna

[McDuck]

I believe that the purchaser of my property is not serious about setting the property. Initially On settlement date, the Purchaser requested for seven days
extension to complete the settlement, Once we reached the 7th day the purchaser lawyer mentioned that the purchaser is unable to settle the property and we served 12 working day's notice to complete the settlement. On 12th day the purchaser lawyer is requesting to extend the time to get the finance sorted.

I am not sure now if the purchaser is really serious about the settlement and what are my rights here as a vendor. I am paying lot of interest on my mortgage because of the delay in the settlement. Please advice what are my rights ...Just to let you know this was NOT a private sale. It has gone through real estate agent and proper S&P.

How is your monthly cashflow?
How long are you able to survive paying the mortgage?
Remember, you probably will have made huge capital gains on the property already.
Are you in the process of settling on another house?

[Blackdiamond]

First of all Thanks to Donna & McDuck for the reply.

In terms of McDuck queries ,my reply is as follows.1,2) I can survive couple of months in terms of monthly cash flow and paying the mortgage. 3)The capital gain is on the paper till i get the money in hand/bank, it needs property to be settled.4) I am not in the process of buying or selling any other property.

I know the purchaser is paying the interest till he settles the property (this is on the paper and nothing is coming out of his pocket now) and he does not have to worry anything until the settlement date and he could take two years paying the interest and not settling (just for argument sake)---what is there in law for this situation . The S&P is a legal binding, I think it will not easy for Buyers and sellers to get out of that without settling, but what about the clever people like him???

Taking into account the uncertainty of the settlement, if I resell the property in the current market the purchaser has to pay the price difference and other losses. My query is --Has anyone had experience this situation and what is the legality in this, what is involved in getting the price difference and other damages from the first purchaser. Even if i go reselling the property i am not going to cancel the current S&P with the current purchaser until the property is sold .


Your advice in this matter is highly appreciate.

[donna]

Hi Blackdiamond,

In the other discussion - I have asked 'Lauren' who has experience with a similar situation for her thoughts. Plus there is this post - which is a link to a law firm outlining 3 options for you.

cheers,

Donna

[Blackdiamond]

Thanks Donna, i have seen the post of Franklin Law dt 2017 with the options. I was interested in people (Sellers) experience so that i can have an understanding of their experience under this situation. I thought this might be common situations where property is purchased and the purchaser is unable to settle because of various reasons.

Do you know any good lawyer who specialize in dealing with failed property settlement and recovery cost.

Thanks again for your time.