Paying Cash for Property after Agreed Settlement Period after Auction?

Pepperchicken on 19/08/2024 - 09:34
Last edited 19/08/2024 - 17:08 by 1 other user

Hi all, I recently bid at an auction, it passed in and I won due to my shorter settlement period (45days).

I needed a LVR of ~40% then. However few days after I signed the contract, Family has offered to cover the 40%, and I essentially do not need a loan.

Now that I have the cash to settle even faster, would it be worth it to ask the Vendor for a discount? I haven't spoken to my solicitor, so not too sure if there are any implications since the contract is signed with the stipulated settlement date and price.

What do the community think?

Cheers

EDIT : It seems many of you are thinking I am asking for a cash discount lol. It is more the fact the earlier settlement than agreed.

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  SydneySchnorrer on 21/08/2024 - 07:57

  Put the offer to them, if they don't accept you've still go your funds on deposit earning and you're still getting 45 days capital growth in the property.

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  ttt888 on 21/08/2024 - 14:12

  -2

  LOL OP thinks he is buying from victoria market or back alley chinese restaurant… I pay cash you give discount? Crazy to even think of this when comes to property purchase. Just crazy.

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    Pepperchicken on 21/08/2024 - 14:14

    Please read the post before jumping to conclusions

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      ttt888 on 21/08/2024 - 14:40

      -2

      But why haven't you corrected your post? "would it be worth it to ask the Vendor for a discount?" you still have this on your post.

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        Pepperchicken on 21/08/2024 - 14:44

        Discount due to earlier settlement, not because of cash.
        Did you read the whole post even with the EDIT???

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          ttt888 on 21/08/2024 - 15:11

          @Pepperchicken: ok then my post still applies. especially is only 45 days which is standard… most cases minimum is 30 days… since conveyancer need to plan settlement and vendor may still need his bank involved and need to book a date…

          However I'm very interested since you are paying cash… Will be transfer the full amt to your conveyancer few days prior to settlement? Usually this is quite scary you have no bank involve on your end.

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            Pepperchicken on 21/08/2024 - 15:34

            +1

            @ttt888: Yes solicitor has advised that full amount should be in their account 2 days before settlement.
            My plan is to consolidate the funds in CBA, and go to a branch to do a single transfer, after confirming Solicitor's bank details via phone call

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              ttt888 on 21/08/2024 - 15:39

              @Pepperchicken: So you mentioned solicitor not a conveyancer. In theory solicitor should have the std insurance protection up to 2 million? eg. if he/she decided to run away with your deposit or lost it due to hack in that 2 days etc. etc. Did you ask about that?

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                Pepperchicken on 21/08/2024 - 15:47

                @ttt888: Thanks for that, I did not know about that.
                The solicitor was referred to me by a mutual friend, and they have an office etc. Very unlikely something shady to happen

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                  ttt888 on 21/08/2024 - 15:48

                  @Pepperchicken: Edit: Actually I'm wrong, google seems to say conveyancer today also must carry professional indemnity insurance of 2 million.

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  Brainwhacker on 21/08/2024 - 16:50

  OP - no harm in asking for early settlement discount , this will depend on the circumstances of the seller,

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  xavster on 21/08/2024 - 20:54

  Hi,

  Doesn't hurt to ask, I've had to request contract changes before. The process is for the seller (with agreement from the buyer) to rescind the contract and then issue a new contract.

  There is legal cost here ~1-1.5k which the seller will probably pass onto you since you're the one asking for it.

  In any case, you should be asking your conveyancer these questions as they know the details of the deal more than a bunch of randos on ozbargain.

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  82norm on 23/08/2024 - 07:34

  The vendor maybe waiting on another property before they can vacate, so earlier settlement may not work for them, unless you make some provision for them to stay until X date, even after you hand over the “cash”.

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