Contracts apparently exchanged but not sent?

[tpw]

Hi,

I bought a unit in mid-December and the agent confirmed that the contract has been exchanged and the deposit already banked into the agent's trust account.

My solicitor enquired about the signed contract just before the Christmas holidays and was told it was in the mail. Then my solicitor went off for holidays and returned last week, and didn't get the contract. When the solicitor asked the vendor's solicitor again, he was told that the vendor has changed solicitor. The new solicitor was supposed to follow-up on Friday but no word yet. Why did the vendor's original solicitor lied about sending the contract out back in December?

With settlement coming up in later this month, I'm not even sure if the property has exchanged legally or is there some games played by the vendor or agent.

What should I do? I'm getting quite frustrated with this delay and wouldn't mind pulling out of the purchase if I could get my deposit + interest back.

Thanks.

 

[Terry_w]

If you don't have a signed contract you cannot enforce it. Who did the exchange?

Best to speak to your own solicitor.

 

[Propertunity]

......I'm getting quite frustrated with this delay and wouldn't mind pulling out of the purchase if I could get my deposit + interest back.

....and you won't be getting any interest. (Trust Accounts don't pay interest)

 

[tpw]

If you don't have a signed contract you cannot enforce it. Who did the exchange?

Best to speak to your own solicitor.

We have already signed the contract and the agent did the exchange. However, this agent seems less reliable than the ones that we have dealt with for other properties, so we are not sure if she has done her job properly. Anyway, she confirmed the property has been exchanged.

My solicitor seems to think there's not much to worry about but we didn't want to be hit by any surprises.

Propertunity, I thought trust account pays interest. I get my share of the interest from deposits paid to trust accounts in other property purchases.

 

[cu@thetop]

Propertunity, I thought trust account pays interest. I get my share of the interest from deposits paid to trust accounts in other property purchases.

Maybe off the plan or long settlement dates where you have signed an authority but no usually on a simple buy with 1 month settle.

 

[Aaron_C]

Trust accounts dont pay interest because they are a special bank product for solicitors/REAs.

 

[ozmale42]

Propertunity, I thought trust account pays interest. I get my share of the interest from deposits paid to trust accounts in other property purchases.

Only if you and the vendor agree to have the funds deposited into an interest bearing trust account , known as a "controlled monies account" . At settlement the interest is generally split 50/50 between purchaser and vendor.

I'm in a law firm and this is quite common, particularly for large commercial transactions, but not so much for resi.

 

[Terry_w]

Deposits can be invested and interest split between the parties. Wouldn't be worth the bother for a 42 day settlement though.

 

[tpw]

Thanks for all the response. Anyway, we finally got the contracts properly exchanged. After speaking to my solicitor, we suspect that the agent may not be doing her job well, ie. was using the contract I signed to give the vendor to sign, hence, only having 1 contract for a long time.