I cannot pull out now. I cannot get my 10% deposit back if to do so according to the sale contract. Obviously only one option left for me: wait and see. This is torture
Bought property which is unable to settled
- Thread starter newinvestor07
- Start date
I cannot pull out now. I cannot get my 10% deposit back if to do so according to the sale contract. Obviously only one option left for me: wait and see. This is torture
I don't understand why if the vendor is unable to settle in accordance with the contract. Usually "time is of the essence". What is the settlement date on the contract?I cannot pull out now. I cannot get my 10% deposit back if to do so according to the sale contract. Obviously only one option left for me: wait and see. This is torture
I don't understand why if the vendor is unable to settle in accordance with the contract. Usually "time is of the essence". What is the settlement date on the contract?
i totally agree.
surely if settlement has not/cannot be achieved the contract is not valid?
it sounds as if you are house sitting rather than renting?
not under a residential tenancy agreement and no security of tenure?
how has your deposit?
i suppose it suits to have the property occupied for security reasons perhaps?
sorry but a lot of this just does not sound right.
good luck but if it were me i would not be going any further with this situation.
is your legal advice totally independent of the selling agent?
who has said you cannot have your deposit returned?
who suggested you live there rent free?
once again good luck.
regards
I paid 10% to agent when I signed the sale contract. The settlement date was 28th August. We've had insurance for this property and commenced before the settlement date. I am not sure if it is still valid in my situation if something happened to this property.
NO, it is from my solicitor.
I thought if I asked my deposit back, I will be the one to pull off the contract. I even did ask for it.
We were renting before buying this property, and we already told the agent we were moving out on 30th.August as our settlement date was 28th Aug. It was too late to tell the rental agent that we were not moving out by the time we knew that the settlement was unable to take place on time, as new tenant was ready to move in on 30th August, the same day we moved out. My solicitor arranged an agreement for us to sign, then we moved in for rental free. My solicitor told us the settlement delayed only 7-10 days. However.....
I don't understand it. You mean you should ask my deposit back and move out. What disadvantage if I continued to stay here? Should I start to look for another property while I am living here? So I don't need to move twice again.
Thanks for the support
Vivian
Then keep waiting ..
You are living rent free in the house you have bought that hasn't settled?
Vivian
I've only just come across your post but wanted to let you know my BF was in the same position earlier this year.
He had an offer accepted on his first house and a settlement date was arranged at 60 days later to allow the correct amount of notice to be given to the tennants. The tennants left on or around the correct date but there was no sign of settlement happening.
BF had given notice at his rented premises in the meantime and had to move out. In the meantime, as the tennants had vacated, local vandals stole about $10k worth of items from the outside of the house including rainwater tank, pavers, parts of pergola, tv aerial etc.
He advised the real estate agent and his conveyancer wrote a letter to the vendor's solicitor for either 1. to drop the price of the house or 2. fix the damage.
Settlement still wasn't happening and his rented premises had been promised to new tennants. Luckily the PMs for that property allowed him to stay as the 2 weeks holding deposit from the new tennants hadn't been paid.
Fast forward to a few more weeks of waiting and no answers. Property prices had gone up now and he could no longer afford any of the houses on the market (western sydney).
He then found out that the vendor owed around $60k more to the bank than the property was selling for. The vendor had falsely thought they could claim on their mortgage insurance or that the bank would give them a loan for the outstanding amount.
The vendor offered for BF to move into the house and pay rent which I firmly suggested would not happen, as what would happen if the house didn't settle and the bank sold it from under him. Better to stay in the current rented premises.
BF had finally had enough and wanted his deposit back. As the settlement date had come and gone, his conveyancor sent a letter of completion to the vendor's solicitor giving them 10 days to settle otherwise he could rescind and gain his deposit back but would still lose on pest, building and conveyancor fees.
Fast forward to the last day of the notice of completion and his conveyancor calls at 3pm to say phone call was received from vendor's solicitor asking for an extension of 1 week as bank has agreed to release the property. I suggested he get his in writing from the vendor's solicitor before agreeing. He decided to proceed with the property as there was nothing else around at that time that he could afford on his own. He was later on told that his notice of completion was able to be used as bargaining power to get the bank to make the decision.
The owner started fixing all of the missing items, BF moved in that night (a week prior to settlement) with the new 50kg rottie x great dane bought to protect the house. The property settled as per above.
All in all it was an extremely stressful period of time and BF has said he doesn't want to buy again. That's ok, I'll do the buying and he can just sign his name heheh).
I hope the above saga helps you as I couldn't find much information out as not many people have been through it.
BF has now made a $40k paper profit on a $190k house so far from what we can see. He is currently renovating and hopes to either sell or access the equity in the future to move up to his dream house on the hawkesbury.
I've only just come across your post but wanted to let you know my BF was in the same position earlier this year.
He had an offer accepted on his first house and a settlement date was arranged at 60 days later to allow the correct amount of notice to be given to the tennants. The tennants left on or around the correct date but there was no sign of settlement happening.
BF had given notice at his rented premises in the meantime and had to move out. In the meantime, as the tennants had vacated, local vandals stole about $10k worth of items from the outside of the house including rainwater tank, pavers, parts of pergola, tv aerial etc.
He advised the real estate agent and his conveyancer wrote a letter to the vendor's solicitor for either 1. to drop the price of the house or 2. fix the damage.
Settlement still wasn't happening and his rented premises had been promised to new tennants. Luckily the PMs for that property allowed him to stay as the 2 weeks holding deposit from the new tennants hadn't been paid.
Fast forward to a few more weeks of waiting and no answers. Property prices had gone up now and he could no longer afford any of the houses on the market (western sydney).
He then found out that the vendor owed around $60k more to the bank than the property was selling for. The vendor had falsely thought they could claim on their mortgage insurance or that the bank would give them a loan for the outstanding amount.
The vendor offered for BF to move into the house and pay rent which I firmly suggested would not happen, as what would happen if the house didn't settle and the bank sold it from under him. Better to stay in the current rented premises.
BF had finally had enough and wanted his deposit back. As the settlement date had come and gone, his conveyancor sent a letter of completion to the vendor's solicitor giving them 10 days to settle otherwise he could rescind and gain his deposit back but would still lose on pest, building and conveyancor fees.
Fast forward to the last day of the notice of completion and his conveyancor calls at 3pm to say phone call was received from vendor's solicitor asking for an extension of 1 week as bank has agreed to release the property. I suggested he get his in writing from the vendor's solicitor before agreeing. He decided to proceed with the property as there was nothing else around at that time that he could afford on his own. He was later on told that his notice of completion was able to be used as bargaining power to get the bank to make the decision.
The owner started fixing all of the missing items, BF moved in that night (a week prior to settlement) with the new 50kg rottie x great dane bought to protect the house. The property settled as per above.
All in all it was an extremely stressful period of time and BF has said he doesn't want to buy again. That's ok, I'll do the buying and he can just sign his name heheh).
I hope the above saga helps you as I couldn't find much information out as not many people have been through it.
BF has now made a $40k paper profit on a $190k house so far from what we can see. He is currently renovating and hopes to either sell or access the equity in the future to move up to his dream house on the hawkesbury.
Hi Sharon, thank you so much for your time and your support. Thank you all for the supports. I have not come to the forum until today as I get some news/progress which I want to share with you and get your guys' some ideas:
The situation is more clear: Vendor had loan to bank (first mortgagee), second and third mortgagee. The three mortgagees was connected to the same title--this property we bought. The sale price is not enough to cover the above 3 loans. The vendor still remained "missing"-not contact with his solicitor. We have been living here for 2 month.
The second mortgagee's solicitor wrote a letter to the real estate agent that they wanted to increase price by 23K to cover the debts, and if purchasers (we) disagree they will let us vacate or obtain a possession order from court and seek payment for cost. The real estate agent showed us the letter and he said the bank agreed with price. The agent pushed us to agree the new price and sign a new contract. I am so upset as I feel I have been pushed to increase the price to pay off the vendor's debt. We didn't agree or sign anything. I am so confused now:
1. Does the second mortgagee has right to take over this case, and get possession order from court?
2. Should the bank have a official letter document to inform that the property is on mortgagee now?
3. Anyone know what is procedure if the bank/mortgagees wanted to go for auction for mortgagee sale? How long do they give the notice to vacate the property? (the agent told us one month)
4. I informed my solicitor the above situation. She didn't answer my question straight, instead she asked me if I wanted to accept the price, and if so she will organise to get the mortgagees to agree the price before we sign new contract with real estate agent. I don't know what to do. I know the property price has increased a bit since we've bought this one, and there is no one we can buy by the original price. But I am 100% happy with this property, so I feel awful to be forced to give away of 23K...
I don't know if I explained clearly. I could not get out of the mess, esp emotionally.
Any suggestions? or anything I should be aware of ? I wish someone can tell me what to do as I have trapped. I so regreted to move in the property....
The situation is more clear: Vendor had loan to bank (first mortgagee), second and third mortgagee. The three mortgagees was connected to the same title--this property we bought. The sale price is not enough to cover the above 3 loans. The vendor still remained "missing"-not contact with his solicitor. We have been living here for 2 month.
The second mortgagee's solicitor wrote a letter to the real estate agent that they wanted to increase price by 23K to cover the debts, and if purchasers (we) disagree they will let us vacate or obtain a possession order from court and seek payment for cost. The real estate agent showed us the letter and he said the bank agreed with price. The agent pushed us to agree the new price and sign a new contract. I am so upset as I feel I have been pushed to increase the price to pay off the vendor's debt. We didn't agree or sign anything. I am so confused now:
1. Does the second mortgagee has right to take over this case, and get possession order from court?
2. Should the bank have a official letter document to inform that the property is on mortgagee now?
3. Anyone know what is procedure if the bank/mortgagees wanted to go for auction for mortgagee sale? How long do they give the notice to vacate the property? (the agent told us one month)
4. I informed my solicitor the above situation. She didn't answer my question straight, instead she asked me if I wanted to accept the price, and if so she will organise to get the mortgagees to agree the price before we sign new contract with real estate agent. I don't know what to do. I know the property price has increased a bit since we've bought this one, and there is no one we can buy by the original price. But I am 100% happy with this property, so I feel awful to be forced to give away of 23K...
I don't know if I explained clearly. I could not get out of the mess, esp emotionally.
Any suggestions? or anything I should be aware of ? I wish someone can tell me what to do as I have trapped. I so regreted to move in the property....
so the agent wants you to pay another $23000 to secure this property?
as i said previously this is a very unsatisfactory situation you find yourself in.
what does your independent legal advice say?
i would want a more secure outcome than this messing about.
plenty other properties out there and peace of mind.
i would move on and get deposit back and put this experience down to just that.
good luck.
regards.
as i said previously this is a very unsatisfactory situation you find yourself in.
what does your independent legal advice say?
i would want a more secure outcome than this messing about.
plenty other properties out there and peace of mind.
i would move on and get deposit back and put this experience down to just that.
good luck.
regards.
Hi Pully,
I totally agree with you, but I have to look for property to rent first, then look for new property to buy. By thinking about moving, my head already is getting bigger. On the other hand, the properties' price has been incresing. It is hard to know in the following few month. If I didn't moved in, I might run away from this long time ago.
Thanks
viv
Yes, even I am sure if I can secure this property by paying more $23K, what about the third mortgagee disagreed the price as there is no sufficient amount left for the third one? I think that the property finally will go to mortgagee auction if I did not pay enough money to pay off all the debt. I don't understand how it works.
Hi Pully, do you mean my solicitor? My solicitor did not give me any advice at the moment. she said that I either offer/agree the price, then she can help with getting all the mortgagees' agreement if I really want the property or I vacate and bid on the mortgagee auction. I am looking for a better solution without moving out. It seems the only option is to agree with the price offered...
Any more ideas please????????????????????
i feel for you and your situation but believe you are being backed into a corner especially as you say you feel you have no options.
if this property could not be settled or unable to be settled then you have not actually bought it have you?
mortgagee sales at auction sometimes do not achieve an optimal outcome for the vendor.
in your situation you are potentially vulnerable to having to pay more than you need and it is a concern that more demands are being asked now, as you stated.
i understand you want to stay and do not want to move.
i do not know what you signed to stay in the property and you said it was rent free? was there any time frame?
it does not sound as if this would be covered by the residential tenancy act?
someone who is an expert in property legal transactions is needed to advocate on your behalf by the sounds of this tale of woe?
it does not sound as if your interests are being protected.
good luck. seek professional advice.
if this property could not be settled or unable to be settled then you have not actually bought it have you?
mortgagee sales at auction sometimes do not achieve an optimal outcome for the vendor.
in your situation you are potentially vulnerable to having to pay more than you need and it is a concern that more demands are being asked now, as you stated.
i understand you want to stay and do not want to move.
i do not know what you signed to stay in the property and you said it was rent free? was there any time frame?
it does not sound as if this would be covered by the residential tenancy act?
someone who is an expert in property legal transactions is needed to advocate on your behalf by the sounds of this tale of woe?
it does not sound as if your interests are being protected.
good luck. seek professional advice.
Hi Pully,
Thanks so much for your understanding and support.
We signed a licent agreement which organaised by my solicitor when my solicitor told us that the settlement was going to be done in 7-10 days...
Vivian
I'm very confused about whether an unconditional contract to purchase existed. In any case, it doesn't sound like your solicitor is promoting your right to settle at the previously agreed price. Is this because your solicitor:
a) doesn't think you had an unconditional contract that you're able to enforce (at the original price)?
or
b) thinks it's too expensive/difficult to enforce your rights?
I'm hoping it's not because c) your solicitor doesn't know your rights...
Knowledge is power. You need to get clear answers to these questions:
1) Do I have an unconditional contract to purchase the property (at that lower price)?
2) If I do have an unconditional contract, am I able to push for "specific performance"? (ie settlement as per the contract)
If you didn't have an unconditional contract - and I'm suspecting that you didn't, there was undoubtedly some "get out" clause for the lenders in there - then I'm afraid you'll have little option but to pay the higher amount or move on.
Out of curiosity, did you run the contract past your solicitor for advice prior to moving in?
a) doesn't think you had an unconditional contract that you're able to enforce (at the original price)?
or
b) thinks it's too expensive/difficult to enforce your rights?
I'm hoping it's not because c) your solicitor doesn't know your rights...
Knowledge is power. You need to get clear answers to these questions:
1) Do I have an unconditional contract to purchase the property (at that lower price)?
2) If I do have an unconditional contract, am I able to push for "specific performance"? (ie settlement as per the contract)
If you didn't have an unconditional contract - and I'm suspecting that you didn't, there was undoubtedly some "get out" clause for the lenders in there - then I'm afraid you'll have little option but to pay the higher amount or move on.
Out of curiosity, did you run the contract past your solicitor for advice prior to moving in?
Similar threads
