Hi guys,
To cut story short I had my offer accepted last week on this property I quite like. The contract has been signed by me and the vendor, I put the usual conditions such as finance, LIM and builders report but vendor didnt.
The following day the real estate agent I was dealing with rang me up and and said that the vendor mortgagee will not provide a discharge of the mortgage because my offer apparently is insufficient to clear their mortgage.
So I went to ASB and talked to my personal banker regarding this situation and he told me that if theres a signed contract for a property the have to be released to the buyer and if the amount of sale does not clear the whole existing mortgage the remaining of the balance will be an unsecured loan against the seller.
So I rang up my solicitor and told him what my personal banker told be but he disagreed. He said, " The mortgagee is only obliged to release the mortgage when they are repaid in full. If they are not to be repaid in full then their agreement to release the mortgage and provide a discharge of that mortgage would be by negotiation. There is no obligation on the mortgagee to take personal loans to cover any outstanding debt".
I really dont want to re-negotiate on the purchase price since I dont think its my problem that the vendor accepted my offer and did not aware of the amount still owing to the bank.
So guys where do I exactly stand at the moment and say if the vendor's mortgagee still will not provide a discharge of the mortgage can I take the vendor to court and ask for conpensation since they have been wasting my time ?
Looking forward to hear back from you guys
Thanks
Ronny T
To cut story short I had my offer accepted last week on this property I quite like. The contract has been signed by me and the vendor, I put the usual conditions such as finance, LIM and builders report but vendor didnt.
The following day the real estate agent I was dealing with rang me up and and said that the vendor mortgagee will not provide a discharge of the mortgage because my offer apparently is insufficient to clear their mortgage.
So I went to ASB and talked to my personal banker regarding this situation and he told me that if theres a signed contract for a property the have to be released to the buyer and if the amount of sale does not clear the whole existing mortgage the remaining of the balance will be an unsecured loan against the seller.
So I rang up my solicitor and told him what my personal banker told be but he disagreed. He said, " The mortgagee is only obliged to release the mortgage when they are repaid in full. If they are not to be repaid in full then their agreement to release the mortgage and provide a discharge of that mortgage would be by negotiation. There is no obligation on the mortgagee to take personal loans to cover any outstanding debt".
I really dont want to re-negotiate on the purchase price since I dont think its my problem that the vendor accepted my offer and did not aware of the amount still owing to the bank.
So guys where do I exactly stand at the moment and say if the vendor's mortgagee still will not provide a discharge of the mortgage can I take the vendor to court and ask for conpensation since they have been wasting my time ?
Looking forward to hear back from you guys
Thanks
Ronny T
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