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Conveyancer-in-charge: Christine Bassett
Christine’s clients purchased unregistered land and simultaneously entered into a building contract to build on the land in July 2021, paying substantial deposits for both the land contract and the building contract. At this time they had obtained a loan preapproval for both the land and building Contracts.
The land registered in October 2022, and the Contract required that settlement occur 21 days after this registration. However, market conditions had changed substantially and the clients preapproval they previously obtained had expired. The clients were now unable to obtain a new loan for both the land and building Contract.
A request was made to the vendor and builder for a mutual rescission of the land and building contracts. This was rejected by the vendor and builder initially. Christine was however able to obtain a release from the building contract for the clients which saved them a significant sum. Christine was also able to secure the clients an extension to the required settlement date for a further month, to allow the clients to secure finance, without penalties which would have ranged upwards of approximately $4,000.
Christine settled the land purchase for the clients and enabled them to secure the land they may have otherwise lost, whilst saving them penalties and further fees in the process.
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