Buyer didn't pay deposit so I terminated contract now threatening to sue me

Discussion in 'Legal Issues' started by Renoir, 3rd Apr, 2012.

  1. Terry_w

    Terry_w Member

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    On what basis could she lodge a caveat on their house?
     
  2. NedKelly

    NedKelly Member

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    Not a good idea.
     
  3. kathryn d

    kathryn d Member

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    Same basis the others may be trying to lodge.
     
  4. Terry_w

    Terry_w Member

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    Are you saying she has an equitable interest in his house? On what basis?
     
  5. Terry_w

    Terry_w Member

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    You cannot just lodge a caveat on someone's house. The lodger must have some sort of interest in it.
     
  6. Renoir

    Renoir Member

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    Even though it sometimes seems that people are able to lodge caveats at the drop of a hat, I would never do it, I don't have an interest in his any of his other properties and I certainly don't need or want anymore legal hassles!
     
  7. kathryn d

    kathryn d Member

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    Cause I'm a spiteful B**ch.
    If another person is able to lodge without basis.....
     
  8. Terry_w

    Terry_w Member

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    Luckily that isn't legal basis to allow a caveat to be lodged.

    The purchaser is able to lodge because he/it has an interest in the property. This interest arises because of the exchanged contract of sale.

    The seller has no interest in other property owned by the purchaser so couldn't lodge a caveat even if she wanted to.
     
  9. Aaron_C

    Aaron_C Finance Broker

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    Well they could lodge it but it wouldn't hold up if it was challenged. But it just causes delays which is perhaps the whole objective of it.
     
  10. VYBerlinaV8

    VYBerlinaV8 Member

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    I've just read through the entire thread, and I'd be inclined to follow Evand's advice.
     
  11. Renoir

    Renoir Member

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    Thank you everyone for your advice, I am feeling much more at ease about things now, the guy is just a bully who doesn't want to lose a good deal.

    My solicitor has given me the pep talk that I needed and has convinced me not to let this guy bully me into submission, as that is exactly what he is counting on!

    The deadline to agree to their threats was by end of business Thursday so I will see what this week ahead brings and whether he backs off or whether he follows through on his threats and puts a caveat over the property.

    Only time will tell.

    Thank you all so much for responding, I will let you know how it goes!
     
  12. Renoir

    Renoir Member

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    Unbelieveably this guy just still won't give up!

    Today's letter....The version of events as advised by your clients agent and relayed both to this office and to my client varies from what your client has advised you.

    Then they just asked where I would like to have the legal papers served to as they were going to sue me.


    My solicitors response.....Can you please advise just what legal entity is going to be suing her as the buyer listed on the contract is Smith Family Trust and as a trust is not a legal entity it cannot bring proceedings in any court of law and does not have the right to sue. So I am curious as to who or what legal entity you are proposing is going to sue her or place a caveat on her property?
     
  13. pennyk

    pennyk Member

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    sounds like your solicitor is on the ball.... which is definitely a good thing!

    but so much stress... I hope you are holding up OK. Selling a house is stressful enough without all this other cr*p.

    Hope the buyer sees reason and goes and find somewhere else..... but that they stay a long way away from every else on the forum!! :eek:
     
  14. jaycee

    jaycee Member

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    Agreed....
     
  15. Renoir

    Renoir Member

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    Thanks Penny

    As you say buying or selling is stressful at any time but going through this sort of crap really doesn't help. I've lost a few kilos but that isn't such a bad thing Lol

    I just wanted to let everyone know that there is a really interesting article which someone pm'd me about in the current May 2012, Australian Property Investor magazine, page 73, a very similar scenario however this buyer bounced their deposit check and then tried to claim that a reduced deposit amount was agreed to by the vendor.

    The vendor terminated the contract, kept the deposit and also sued and also got the difference between the original selling price and what they eventually sold for (which was hundreds of thousands of dollars difference) plus interest and costs. The buyer appealed and tried fighting them on many levels but the court sided with the vendor every time and they lost out big time. The vendor was awarded damages of $350 000 + interest and the article in the API magazine says they got costs as well.

    Link to an article about the case is below:

    http://www.reinsw.com.au/Default.aspx?PrintFriendly=True&ArticleID=9717
     
    Last edited: 11th Apr, 2012
  16. Blurbman

    Blurbman Member

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    Hi Renoir,

    Any update on how it's going? Would hate to see a bully get up!
     
  17. fernfurn

    fernfurn Member

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    I would re-email that article on to the agent and their solicitor
     
  18. Melbournian

    Melbournian Member

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    interesting article -thanks for the good read
     
  19. handyandy

    handyandy Member

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    Hi Renoir

    Just reading through this thread and wondering what was the eventual outcome?

    Cheers
     
  20. Renoir

    Renoir Member

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    Hi Handy Andy,

    The guy didn't want to lose the property so he paid the deposit and he agreed to an increase in the purchase price of another $10K (for all the friggen hassle and drama he caused me). Then 24 hours before the settlement date he asked for an extension as he said he didn't have the finance organised (the contract was not even subject to any finance!).

    I denied his request for the extension (I felt that he had had more than enough time as the settlement period was 3 months and he has already caused me enough grief) and I had arranged to purchased a new property and they were all supposed to settle on the same day so delaying the settlement was not an option for me.

    They didn't respond at all after I denied the request for extension and my solicitor thought they weren't going to settle and everything was going to be an absolute mess, but they turned up on time for settlement and it all went through as scheduled much to everyone's relief. My solicitor was totally surprised he really thought they wouldn't show up to the settlement and was preparing me to expect that. But thankfully they did settle. So it was an extremely stressful experience and I did get another $10K out of him for all the hassle but I never, ever want to go through that again! I will not be selling again in a hurry I will be staying put in this house for a long long time to come.

    Oh and he claimed he wasn't aware of all the dirty tactics his solicitor was doing to try and stop me getting out of the contract when he didn't pay the deposit. He reckoned he had no idea that they had threatened to put a caveat over the property etc. I didn't believe for a second, I'm sure he was well aware of all their threats etc but in the end all worked out.

    Karma came back to bite him though when he designed the units he was putting on the block the council resumed part of the land for future road widening, so he lost 3 metres of frontage, I knew nothing about the road widening apparently all that came about just after the settlement. Lol