Moneybox Deposit Timing Issue
The individual is in the process of purchasing a house in Western Australia and has engaged a solicitor to manage the legal aspects of the transaction. There is a timing issue with part of the deposit held in two Moneybox accounts, as these accounts were opened less than a year ago. The withdrawal date from these accounts is set for late June, which avoids a penalty. However, there is a possibility that the solicitor might require the funds before this date after completing necessary searches. The individual is looking into options to potentially delay the final transaction date to synchronize with the withdrawal date.
Questions about this case
These answers have been verified by a lawyer in the LEAP networkIs there a way to delay the final transaction date until late June to align with the Moneybox account withdrawal date?
To delay the final transaction date until late June, coordination with your conveyancing solicitor is necessary to negotiate a revised completion date with the seller. This often requires mutual agreement between both parties. Explaining your situation regarding the Moneybox account to the seller and their solicitor, highlighting that aligning the completion date with your withdrawal date will facilitate a smooth financial transaction, can be helpful. Also, reviewing the sale contract for flexibility regarding completion dates can be beneficial.
What are the potential legal implications if funds in our Moneybox accounts are not accessible before the withdrawal date?
If access to the funds in your Moneybox accounts is not possible before the withdrawal date, it could delay the completion of the property purchase, possibly resulting in a breach of contract with the seller if the funds are not available on the agreed completion date. This might lead to penalties or the loss of your deposit. Ensuring clarity on the completion timeline with your conveyancer is crucial.
What options do we have if the seller is not willing to adjust the transaction timeline to accommodate our Moneybox withdrawal schedule?
If the seller is reluctant to adjust the timeline, exploring bridging finance to cover the gap until your Moneybox funds are available could be an option. This is a short-term loan designed to address funding gaps. Additionally, negotiating with the seller for possible concessions or adjustments in other terms may compensate for the inconvenience.
Are there any contractual clauses we can include to protect ourselves in case the funds are not available on the expected date?
To protect against potential unavailability of funds on the expected date, negotiating to include a "conditional on funds availability" clause in your contract is advisable. This allows for flexibility if delays occur. A "long stop completion date" can also be included, providing a final date by which completion must happen.
How will the timing of our funds impact the exchange of contracts and completion of the property purchase?
The timing of your funds will significantly impact the exchange of contracts and completion. Typically, the exchange requires a deposit to be paid, and if funds are unavailable by this stage, it could delay the exchange. Any delay in accessing the funds could result in contractual breaches.
