Conveyancing matter. Because to COVID-19, our clients had difficulty acquiring enough finance to complete the purchase of their new home. They faced losing their 10% deposit and incurring bank fees plus a claim for damages by the vendor. Thanks to the fantastic work of Mikaela, our expert conveyancing solicitor, we helped the client complete the purchase and escaped all extra costs.
Client story
Our clients exchanged contracts for the purchase of a property just before COVID-19 made its way to Australia. The clients intended to sell their property and refinance their loan to pay for the new purchase. COVID-19 hit, and they struggled to sell their property for the amount required for their purchase. The client finally sold their property, but we were unable to line the purchase up with the sale, so our clients were stuck having to complete the purchase before having the funds from their sale.
Issues
Our clients did not have sufficient funds – by loan or otherwise – available to them before the purchase settlement date. The vendors issued a notice to complete compelling our client to settle within 14 days. If the clients did not settle within this time, the vendor would have been able to terminate the contract, retain the clients’ 10% deposit and seek damages.
What we did
Mikaela liaised with the clients’ mortgage broker numerous times a day during this 14-day period to arrange a new loan facility that would allow the purchase to proceed. She also liaised with the real estate agent who sold our clients’ property to transfer the deposit monies held by them to our trust account to assist in reducing the required loan amount.
Outcome
We managed to arrange a loan within three weeks. The client was able to move into their dream home, escaped having to pay exorbitant bank fees and did not have to risk forfeiting the 10% deposit or face a claim for damages.
