There were 683 auctions this last weekend. The REIV expects more than 2,100 auctions in the next two weekends before the AFL Grand Final …….. bring it on !
Conveyancing | Right Choice Conveyancing
Selling your home and you have built a new home or done building works on the property less than 6 and a half years ago as an Owner Builder ? ( you didn’t use a registered builder)
You will need to provide a current Owner Builder Report in your Section 32 Vendors Disclosure Statement.
We had a situation recently where a client sold her property and did not disclose there had been owner builder works done in the preceding 6 and a half years. She did obtain a permit for the works and as works were quite minor, she didn’t think it was really necessary to advise us due to the nature of the renovations she had done. She also thought, as they were completed nearly six years ago it was not worth mentioning to us and it not was it worth the expense to obtain a report.
So when preparing her Section 32 Vendors Statement, we asked her the question “ have you done any building works or renovations in the past 6.5 years “ Her answer was “ no” .
She sold the property and purchased another property with the intension of settlement both on the same date.
Before settlement, the Purchaser who bought her property made enquiries with the council and found that she had obtained a permit for those works as an owner Builder and that she had never obtained a final inspection . The fact that she was an owner builder and did not provide an owner builder report in her Vendors Disclosure Statement attached to the Contract for her sale, made her Section 32 Statement defective and provided the Purchaser grounds to pull out of the Contract. The Purchasers ended up delaying settlement with threats that they were reserving their rights to end the Contract.
In the meantime, with her sale settlement being delayed, she was not able to settle her Purchase settlement, as she was waiting on the proceeds from her sale. She then was in breach of her Contract for her new property. On top of this, she accrued penalty interest for each day that she went over the settlement date and was in dire risk of losing the deposit she had paid towards her Purchase.
The Team at Right Choice Negotiated with the Purchasers representative and found a resolution which satisfied the Purchaser and also liaised with the representative for the Vendor in her Purchase settlement and found a resolution for them too. Settlement was about 6 weeks late and although it did cost our client extra in her Conveyancing costs and penalty interest was charged by the Vendor that she was purchasing from we were able to settle and save her deposit from being lost……………..it could have been a lot worse.
Moto of this story ……………….. Cutting costs could potentially cost you so much more!
Situation now solved and everybody is happy J
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The current Melbourne property market provides us with close to Ideal conditions for investing in property. If you are looking to invest in property and you don’t know where to start, we can help by putting you in touch with a property and wealth advisor who has assisted many of our clients. Why keep putting it off ….. give Karen a call at our office and start securing your future.