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Hi all - a bit of advice would be appreciated here. I agreed with my parents to purchase their property, so that they could free up some equity, continue to live there, and be able to pass it down to their grandchildren one day.
I thought this would be a simple transaction but not so! Six months later and still no settlement...
Here's what we are attempting to do for a property with ratings valuation of $800K:
I buy a half share for $300K - parents now mortgage free
Parents gift remaining half to my family trust
Parents remain in house (nothing changes here)
Beforehand my parents and I had discussed it reasonably well, they knew what the transaction meant, and I warned them that their lawyer would try to talk them out of it, which he did - but they were fully informed and still wanted to go ahead with the sale.
ANYWAY... Six months down the track and still no settlement! I've had one mortgage preapproval fall over, had to apply for finance again and now the bank is slowing things down even more because each of our lawyers keep trying to change little details every other week and they're understandably getting pissed off.
I considered changing lawyers a while ago but was afraid of the costs I would incur - well the increases in the mortgage interest rates alone since March mean that I've already lost God knows how much anyway... I thought we had finally nailed it last week (a signed S and P off to the bank to enable release of bank documents) but now the Bank has come back questioning a clause that my parents lawyer inserted which states they can live in the property rent free until death (obviously that clause never addressed what might happen in the event of a mortgagee sale grrrr).
I suspect that my lawyer is simply disorganised and that my parent's lawyer is deliberately being difficult because he doesn't agree with the purchase - but six months?? Any suggestions here? I have no idea what the legal fees are going to be for both of us, and I'm not looking forward to finding out.
Thanks in advance.
I thought this would be a simple transaction but not so! Six months later and still no settlement...
Here's what we are attempting to do for a property with ratings valuation of $800K:
I buy a half share for $300K - parents now mortgage free
Parents gift remaining half to my family trust
Parents remain in house (nothing changes here)
Beforehand my parents and I had discussed it reasonably well, they knew what the transaction meant, and I warned them that their lawyer would try to talk them out of it, which he did - but they were fully informed and still wanted to go ahead with the sale.
ANYWAY... Six months down the track and still no settlement! I've had one mortgage preapproval fall over, had to apply for finance again and now the bank is slowing things down even more because each of our lawyers keep trying to change little details every other week and they're understandably getting pissed off.
I considered changing lawyers a while ago but was afraid of the costs I would incur - well the increases in the mortgage interest rates alone since March mean that I've already lost God knows how much anyway... I thought we had finally nailed it last week (a signed S and P off to the bank to enable release of bank documents) but now the Bank has come back questioning a clause that my parents lawyer inserted which states they can live in the property rent free until death (obviously that clause never addressed what might happen in the event of a mortgagee sale grrrr).
I suspect that my lawyer is simply disorganised and that my parent's lawyer is deliberately being difficult because he doesn't agree with the purchase - but six months?? Any suggestions here? I have no idea what the legal fees are going to be for both of us, and I'm not looking forward to finding out.
Thanks in advance.
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