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  1. #1

    Default On sell before settlement

    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

  2. #2
    Join Date
    Jun 2005
    Location
    auckland New Zealand
    Posts
    5,236

    Default

    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

  3. #3
    Join Date
    Dec 2008
    Location
    Wellington
    Posts
    76

    Default

    Quote Originally Posted by pooomba View Post
    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.

  4. #4
    Join Date
    Jun 2005
    Location
    auckland New Zealand
    Posts
    5,236

    Default

    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.

  5. #5

    Default

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

  6. #6
    Join Date
    Jun 2005
    Location
    auckland New Zealand
    Posts
    5,236

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

  7. #7

    Default

    As long as you are certain he can, and will, settle.
    'Never let the wild bastards grind you down'. Winston Churchill.

  8. #8
    Join Date
    Dec 2008
    Location
    Wellington
    Posts
    76

    Default

    Quote Originally Posted by pooomba View Post
    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.

  9. #9
    Join Date
    Oct 2007
    Posts
    360

    Default

    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
    Last edited by SuperDad; 10-02-2009 at 06:07 AM. Reason: Removed wayward smiley

  10. #10

    Default

    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?


 

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