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Patrick H.
Patrick H., Lawyer
Category: Australia Law
Satisfied Customers: 5422
Experience:  Dip Law LPAB - Sydney based lawyer
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I agreed to a court order that a person to own half a property

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I agreed to a court order that a person to own half a property that i purchase in 2007 in my name. In 2011 I realized that business has slowed considerably and I put the property up for sale, to prevent bankruptcy. The person has put a caveat on the property to prevent me from selling. Another court order was to have the property sold at auction. I thought it was a good idea and agreed. The auction did not meet the reserve and the real estate put a contract on the property for $68000. and sent to both solicitors. I went to my solicitor to sign the contract and their was a second contract for half and my solicitor advised me to sign that second contract , which was in the other persons sons name. So i did. It was an unconditional contract and was suppose to settle on the 9th July. They have asked me for a 2 week extension to get finance. I do not think a 19 year old boy who cannot show 2 years financials get a loan. I maybe wrong. Should i ask for a new contract or give him the extension.
Hello and thank you for your question.

Unless you have an alternate buyer lined up, or for some reason no longer wish to sell, then likely you should agree to the extension in the hope the purchaser can complete.

The fact the purchaser may be only 19 is really irrelevant. Whether he can raise the finance is not determined by his age, and likely his parents or some other entity is backing him in this purchase and it is simply a question between him and the bank as to whether he can raise the funds.

Two week delays in raising the funds are not unusual in any event.

If you do refuse to grant the extension you can in principle claim part of the deposit but only to three extent you can demonstrate a loss resulting from the purchasers default, and may then have to again incur the expense of finding a new purchaser.

I trust the above assists your understanding.

Please rate my answer so I can be paid for my time and effort.



Customer: replied 4 years ago.

you told me nothing that i don't already know. I feel that a extension is a condition.

Unfortunately, I can only answer the questions I am asked and cannot anticipate what a customer may or may not know.

That said you have said that you feel the extension is a condition. Legally speaking it is not a condition at all, and you are not obliged to grant an extension on an unconditional contract, however, as per my previous advice, in practice it is usually best to be willing to grant a modest extension in order to secure the sale. It may be frustrating, but delays in finalising finance are common and provided the delay is not great, it is rarely commercially sensible to simply terminate the contract over a minor delay.

Of course if you are unwilling to let this co owner's family member simply defer the contract you could try make your agreement to an extension conditional upon their agreeing to pay interest on the money you should have received for the extension period, but with interest rates so low, and the likelihood of legal costs attaching to any such agreement, it may not be worthwhile pursing such.

I trust the above assists your understanding.

As I have tried to assist you and it appears I have answered your question comprehensively. It is only fair that you now rate my answer so that I can be paid, by Just Answer, for my time and effort. I am only paid if you rate my answer positively.

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Thanks in advance,

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