Deceitful REA - First home Experience Ruined.

[xQuIz8]

Thanks for everyone's comments. But I really hope people will learn from this. As naive and careless I may blame myself to be, this could really happen to first timers in the market. I've read all about not trusting REAs and that they're not working for us, but the vendor etc. But when it comes to the real thing, I just didnt see it that way. "Des" seemed nice and helpful. I treated him like a friend. My partner & I even bought a Moet Chandon (which is now sitting in our fridge) few months back in hoping to present it to "Des" on settlement date just to show our appreciation. I know this sounds silly, but again, I have no one to blame but myself.

I dont know if I'm going to court.. Perhaps like most say, a legal letter first. God knows if he's reading this thread too. But out of curiosity, I've got a question for all those law-savvy people out there. If I were to publicly disclose the real identity of "Des", would it be unlawful ? I can't be careful enough these days..

 

[marg4000]

Please don't complicate matters by naming "Des" OR his firm. And I really hope that Des is not his real name.

I understand your feelings of betrayal from someone you trusted, but as previously said, at the end of the day it is what is in the contract that you signed that matters. AND you will incur legal expenses, which will be in the thousands if you choose to go to court. If you did win (and that is by no means certain), payment would probably not even cover your legal expenses. Your lawyer will want to fight it, it is in HIS interests to do so as he is running a legal business.

But certainly complain to the Dept of Fair Trading in your state, your local member of Parliament (State), the RE authority in your state, and feel free to tell as many people as you want - but NOT in writing or to this forum.

Then let it go.... Look at it as a lesson in life that will protect you in years to come.

Assure your tenants that you will release them from the lease as soon as they can find another rental, and with rentals increasing at all times it will be in their interests to find another place sooner rather than later. Don't forget to give the relevant notice to quit prior to lease expiry with plenty of time over and above statutory levels.
Marg

 

[evand]

If it did get to court (which is unlikely) TOP should be awarded damages + costs, which is a standard outcome. And the result his/her solicitor would be trying to achieve. In this case i'd say a good chance of being successful.

As i said, a written contract means squat if there is circumstances which affect the signing of that contract. Verbal or otherwise.

Whats wrong with trying to take this scum bag to the cleaners? Plenty wrong with just accepting it.

AND you will incur legal expenses, which will be in the thousands if you choose to go to court.

 

[wylie]

Maybe you might tip in a few dollars towards the legal fees evand?

And people are not saying that letting it pass is "right" but chasing it up through the courts might not be the best way of doing things. It could make it that much worse and that much more painful on the hip pocket.

 

[BayView]

First of all, this behaviour is the type that gives all agents a bad name. It seems you have tried REIV and they are no help to you.

Having seen the lease contract, didn't that ring alarm bells, that it ended in May '09? Did you not check to see if it was signed? If it wasn't signed, then the agent should have shown you the earlier contract that had rolled into a month by month basis.

The time you said in the letter to give notice as to whether you stay in your old place has passed. What did you tell them?

I don't know the rules exactly, but it can still be your PPOR as long as you move in within a certain time frame. Somebody will know that time frame, but you may not have to pay CGT when you sell. It will also affect whether you pay PPOR stamp duty or the higher IP stamp duty.

What a mess.

Have you heard back from the tenants?

Let's get one thing straight; ALL agents have a bad name, but there are few out there that are not the norm.

It's their own fault for not cleaning up their own house, and they can't whinge when everyone slags them. If you complain to the REIV about the behavior of an agent; nothing happens. The only time there is any sort of action is when the case hits the media, and they are forced to show some form of activity.

When they start getting serious about getting rid of this sort of behavior once and for all, then they may be justified when they whine about how they are perceived.

Until then; they deserve EVERYTHING they get.

If it is your PPoR, you can evict the tenants with 60 days notice if you are planning to move in. If they are on a periodical lease it is 120 days notice.

 

[ffc1883_1996]

If it is your PPoR, you can evict the tenants with 60 days notice if you are planning to move in.

The 60 day PPOR rule only applies if the clause was noted on the lease in the first place (I bet it wasn't).

The 120 day "vacate for no specific reason" clause may be the only option.

 

[Perp]

The 120 day "vacate for no specific reason" clause may be the only option.

Crikey! 120 days! I had no idea such a long notice was required in Victoria. QLD's just about to increase it to 60 days.

 

[Lamingtons]

It looks to be in Melbourne and I bought a place with an existing tenancy contract that would expire in March, I think i settled in September.
I rang Office of fair trading about providing 120/60 days notice that i wanted to move in.
They said that I cannot vacate them using the 120/60 days notice unless of course they are in arrears for rent. So in this case they can and looks like they want to stay until May. They don't want to leave so don't have to leave. The 60 days notice that you want to move in is before the expiration of their contract. So if it was May 2009, provide 60 days notice before their lease expires.

 

[rastus2]

My partner and I have recently signed a contract of sale for a property in Aug 08. We purchased it in good will thinking we'd be able to move in as our first home in Dec 08. The REA told us that the tenants in the property are on a month by month basis and no contract was actually in place. Long story cut short, turns out that the REA deceived us into purchasing the property despite knowing that there will be problems getting them out before settlement and that they actually do have a contract in place.
Now, we will have to rent out the property till May 09 before we can move in.

Below is a letter that I've sent to the tenants as a last resort explaining our situation in detail, hoping that they will symphatize us.

---.

sorry.... Does not compute !!


I thought you said it was a first home experience ... my maths is not great, but seems like it's 4th home to me.

Did I mis read your post below ?
from here



xQuIz8
Member

Join Date: Nov 2007
Location: Melbourne, VIC
Posts: 59

I wouldn't recommend near the casino, or in Southbank, or in the CBD, or Docklands. Those places are awash with stock and lack decent amenities.
QUOTE]

I'm sorry but this is utter... nvm
Yes, there are many apartments around, yes thats true. THats just because the land is too expensive to just build a a couple of houses on it !
Lack of decent amenities... gosh .. . . . . .. . sigh... nvm
You're more experienced than myself..so I'll just zip it up.

Anyways,

I have a 3 units in the CBD.

1 : Bought 2005 at 330k, just revalued 2 months ago at 450k 6%yield
2 : Bought 2004 at 400k, '' at 620k 5.9% yield
3 : Bought 2006 at 420k, '' at 500k 6.7%yeild

The apartments are in Southbank, Docklands and St Kilda.

Low Capital Gain..? I dont know, but to me its quite decent.

Advice though is to buy at the right unit at the right location in the right building. Dont buy an apmt in Docklands without the water views. Dont buy apmts in CBD or surrounding suburbs with a blockout view / with bad fittings.

Look for quality, position and of course, the view.
------------------------------

 

[lizzie]

I thought you said it was a first home experience ... my maths is not great, but seems like it's 4th home to me.

maybe first ppor ...

 

[marg4000]

This post is NOT for people to symphatize me. I just dont want first timers like myself to fall into the same position as me.

I have just re-read these emails and they certainly appears to come from someone making their first purchase. Although the posts don't make that claim, the above quote definitely supports it.

Clearly not from the previous thread mentioned by Rastus2 regarding several IPs, which would make for quite an experienced buyer.

?????????

Marg