Cancel the uncoditional contract - Urgent

[TheAnalyst]

Dear All,

I would like to terminate an unconditional contract because of high mortgage discharge fee by the infamous investment bank here.

What the implications I would have? what can the buyer sue me?

Urgent Advice please

 

[Ausprop]

presumably you are talking about a WA property? read the fine print in the joint form...it's all there. you can't get out of it but will they bother to pursue you throught the courts??

 

[TheAnalyst]

presumably you are talking about a WA property? read the fine print in the joint form...it's all there. you can't get out of it but will they bother to pursue you throught the courts??

Thanks Ausprop. I read the fine prints - 24.14-14.16. What damages can they sue me if I refund the deposit and pest inspection?

 

[Ausprop]

you need a lawyer

for them to seek specific performance would be $100k in the supreme court, so is unlikely

damages - I dunno. would be hard to prove the proeprty has gone up in value?

your infamous lender wants to close its loan book I believe. out of interest, could you tell them you are indifferent about closing the mortgage so if they want you off their books you are prepared to pay half the exit fee, and then advise of their answer? I have been wonderign what they would say

 

[Ausprop]

I wonder also if they could leave a caveat on your property forever preventing you from selling it? Their equitable interest is clear

 

[TheAnalyst]

I wonder also if they could leave a caveat on your property forever preventing you from selling it? Their equitable interest is clear

They can buy in the future I decide to sell. I do not have problem they put whatever on. I really what other implications I would have. I could not find anything saying I must sell otherwise the police will do that.

 

[Ausprop]

24.15 (b)

buyer may affirm contract and seek specific performance and seek damages in addition or instead of

 

[TheAnalyst]

you need a lawyer

for them to seek specific performance would be $100k in the supreme court, so is unlikely

damages - I dunno. would be hard to prove the proeprty has gone up in value?

your infamous lender wants to close its loan book I believe. out of interest, could you tell them you are indifferent about closing the mortgage so if they want you off their books you are prepared to pay half the exit fee, and then advise of their answer? I have been wonderign what they would say

They agreed me to substitute a property for the loan. But they sent to QBE for approval and was rejected. I only have few moths for 3y limit. But this bank is too greedy (I paid them 10.9% last year on interest). Obviously as you said - QBE wants closed the book, the greedy bank wanted to take a share of my money. I do nto want to take them to court to get money back. I did not sell to the buyer a high price. So I do notcare they buy or not. They knew they would nto get a lot of interest on my loan rather than take a big chunck of sale (about $10k fee)

 

[Ausprop]

They can buy in the future I decide to sell. I do not have problem they put whatever on. I really what other implications I would have. I could not find anything saying I must sell otherwise the police will do that.

selling in 10 years at todays price...not good!

when they lodge the caveat they will lodge the contract of sale with DLI as evidence of their interest

indeed many buyers do this as a matter of course when buyign property

 

[TheAnalyst]

24.15 (b)

buyer may affirm contract and seek specific performance and seek damages in addition or instead of

I saw - what specific performance they can claim? damages? That is what I want to know a bit.

To make myself a bit hassle free, I am thinking of letting the contract run. If they can not settle on the agreed settlement date, then I terminate the contract

 

[TheAnalyst]

selling in 10 years at todays price...not good!

when they lodge the caveat they will lodge the contract of sale with DLI as evidence of their interest

indeed many buyers do this as a matter of course when buyign property

I do not know about I could be locked the price. I do not know and I will seek legal advice tomorrow. They have to buy at the market price if they want to.

 

[Ausprop]

get the advice is the best bet. EOD you have sold it for x... that's what a contract is for. What falls out of the tree if you walk on your part is just the commercial reality of the situation.

 

[TheAnalyst]

get the advice is the best bet. EOD you have sold it for x... that's what a contract is for. What falls out of the tree if you walk on your part is just the commercial reality of the situation.

I did not want to sell it but the buyer chased me. I do not know anyone has done it before.

 

[joanmc]

I did not want to sell it but the buyer chased me. I do not know anyone has done it before.

Just curious...If you didn't want to sell it why did you sign an unconditional contract?

 

[Perp]

With regard to damages: they *could* sue you for quite a lot, but they probably won't because of the prohibitive cost to them. If they bought your house for $500K, and equivalent properties have gone up to $600K in the meantime, they could sue you for the $100K difference that they've had to pay due to your breach. This would, however, be quite difficult and expensive to prove to a Court's satisfaction.

what specific performance they can claim? damages? That is what I want to know a bit.

"Specific performance" isn't damages, it means they can ask the Court to enforce the contract as written, ie Get the Court to transfer ownership of the property to them, on the terms contained in the contract, despite your objection to fulfilling your end of the contract. Yes, this is possible, but quite rare - it usually gets to the point where the vendor sees they're going to lose and proceeds with the transfer, because if it got to a point where the Court enforces specific performance, you'd probably lose the property and have to pay the buyer's legal costs, and possibly any damages relating to the delay.