I sold my land.
Subject to finance by the 19th Feb 2010, settlement to take place 6th March 2010.
4 days before settlement(02/03/10), my conveyancer calls me to tell me that she just received a fax dated 25th Feb stating that the purchasers application for finance has been declined!!!
Up until the 19th Feb, we heard nothing from anyone so everyone assumed all was going to plan.
Starting 21st Feb, we started to make big expenses as after the settlement, we would be able to pay off these expenses.
Upon receiving the decline fax, my conveyancer calls agent to ask if he has the deposit of 500. He says he only has the 0 and has been trying to get them to pay the rest but to no avail!!!
Who’s at fault? Who can i sue for my deposit and the extra expenses i had incurred due to the delay in settlement? Does the conveyancer have to chase up the deposit? Does the agent have to chase up the deposit?
Are you thinking about selling your home yourself? then
I suggest that you obtain an understanding of real estate contract law for Victoria.
Had you exchanged contracts – that is the purchaser had obtained unconditional finance approval and your property passed all necessary pest and building inspections? Once this is done, contracts are signed and exchanged.
If this hasn’t been done, you have no legal rights to compensation. The real estate agent would have been taken a holding deposit only, until exchange of contracts which probably was conditional that the deal was subject to the purchaser obtaining finance., at which time, the purchaser would have paid the full deposit. There is no date by which the subject to finance clause will expire. This means that until the purchaser has unconditional approval for finance, there is no deal.
It sounds like you have jumped the gun and anticpated the sale, before contracts were offical.
If this is the case, and you have incurred expenses, you have caused your own problem and cannot expect to sue anybody.