Oh F… Dear

Oh… dear!!!!  (Not what I really said)

So after just pushing publish on my post yesterday (From old to new) I got a phone call from our Conveyancer. In that post I mentioned how I was waiting to hear from our Conveyancer so I knew what cheques I needed to draw for our settlement tomorrow.

I had spent the day baby sitting my gorgeous five month old nephew Patrick and sneaking in a quick blog post while he was happily playing on the carpet. My gorgeous sister in law had just returned from the hairdressers and was preparing Patrick’s afternoon feed when my phone rang. It was our Conveyancer. Hallelujah!!! She was a day early and it looked like I was going to have all of today to nick around and organise what needed to be done.

As soon as I heard her voice though my excitement quickly died away. Something was up. Something really bad was up.

Her words to me:

“Settlement has been cancelled”

Ohhhh….. FDear!!!!!

She went on to garble all this legal babble at me and all I can remember is my mind spinning and wondering what the hell we were going to do. The removalists were booked, we had Friday afternoon off work and Monday which gave us three and a half days to move in. The electricity and gas were all set to be connected and so was the internet. I also remember her briefly mentioning license agreement, breach of contract, default notice, extra fees and court. That was pretty much all I heard.

Once she had finished she was waiting for me to say something, all I managed was a “What does all that mean?”

She went on to explain that our Vendors, the people we were buying the house off, had bought another house and because of the way their finance was structured, their bank required both settlements to happen on the same day. The house they had bought was unable to be settled on Friday which then meant that our settlement couldn’t go through either. She also explained that she had no idea when settlement would go through as they hadn’t specified it at all.

She then started giving me our options.

We could serve a default notice on the Vendors as they were in breach of the contract. This would mean they would have 14 days to complete the contract or we could walk away from the house. It would cost them $440 plus any out of pocket expenses we would incur  as a result of the delayed settlement. Also, if it ended up in court then we would need to have been seen as doing everything necessary to keep the contract alive. The idea of court freaked me out a little, I mean seriously, all we want is the keys to our new home. We don’t want to walk away from it or end up in some nasty court battle that could go on for years and cost us a small fortune!

The other option was that the vendors were willing to let us have a License Agreement on the proviso that our conveyancer prepared the document at our expense.

Hold up, What? You delay our settlement and then want us to wear the costs?

Our conveyancer went on to explain what a License Agreement was. It’s an agreement that allows us to move into the property tomorrow even without settlement going through. It means that we take possession of the house as originally planned, and everything I had organised for the move would stay the same. The only difference is, we wouldn’t have paid for the house yet and nor would we be paying rent.

I was quite sketchy of the idea at first until our conveyancer explained this happens all the time and that as long as we had insurance on the place (Which we already do) then she could write up the agreement and sign it on our behalf and it would business as usual for us.

She also explained that because it wasn’t our fault settlement was delayed, she could write to the vendor’s conveyancer and inform them that we would take the License Agreement if the Vendors wore the cost of the preparation (Which is $250) or we would issue a default notice which would cost them $440.

By this stage my mind was spinning too much but I was too happy that there was a possibility we could still move in tomorrow as planned. We kind of know the Vendors, Anthony went to school with the wife, she was in his younger sisters year level, so we didn’t want it to get nasty. We just wanted the keys!

We decided that we would take the License Agreement and wear the cost of it ourselves to keep the peace and ensure we could move in tomorrow. It will also cost us extra now for the extra time our conveyancer has to put in reorganising settlement. All up it will be around an extra $400 we are out of pocket but hey, if we get the keys tomorrow I don’t care! It also means that we don’t actually start paying our mortgage until settlement does go through so by the time it does we may have saved $400ish out of payments anyway.

Crisis averted!! 

After a few calming glasses of wine last night we are now on track to do our final inspection on the property tonight with the real estate agent and will be all set to move into our new house tomorrow, that we haven’t paid for!

Now, let’s just all cross our fingers that nothing else unexpected happens and we can live happily ever after!

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Comments

  1. Kristin says:

    Oh noooo, how stressful!! I’m sure it all will work out for you, but I’ll keep my fingers crossed nevertheless.

  2. Oh no!! That’s like the worst settlement story I’ve heard!! It sounds like everything worked out ok though in the end.

    • Oh yeah, it was pretty shattering! Thank god we are in now and Settlement happened yesterday. Just about to do a follow up post =)

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