Finance rejected, legal implications..

[Bigtone]

Good morning all

We are indeed very much appreciated for all your valuable comments about our demise so far and hope we heard about this forum much earlier before landing ourselves in deep sea...

We are at present in contact with another broker in search for another finance option however, the possibility of notifying the builder/solicitor of a failed deal is quite high up on our priority scale and have been expecting the initial deposit of $22K to be long gone when/if the second broker comes bank null & all.

Having said that, let us share our side of story as a learning curve with all u guys: (as some of you guys have guessed it correctly)

Off the plan
Apartment accommodation (and never mentioned about student accommodation at sign off and only be told at a later stage)
Rental guarantee

RE agent never returns phone calls despite numerous attempts.

First broker: we reckon is working on high commission from only a few institutions and only being told that after the application has gone in that big 4 aren't doing the student accommodation IPA loan from July 2010 and no one else will...... the rest you guys know from the beginning!

So we wanted to seek a 2nd attempt as a "responsible" buyers from another institution and if that fails then we have no choice but to nicely inform the vendor about our situation then let them keep the money..... hopefully nothing more.

We know that we are fighting a losing battle but at least we have given it a good try.

Pearl

if u can get out of contract for non disclosure do so, i have done this a couple of times when it turned out things were deliberately left OuT of section 32

if u cant get out of it now u know the type of property it is why settle? lose the $22k and move on
buy something else with the rest of ur cash

u will be far better off long term than buying this money pit

 

[cadence]

Pearl, if it really not ever mentioned to you that the unit is for student accommodation only before you signed the contract and the contract does not disclose this, you have a very strong case to rescind the contract (get out and not having to pay builder any money).

You can easily argue that's a very important piece of information, if you were told, may have influenced your decision not to enter into the contract in the first place. He's also in breach of section 52 of the Trade PRactices Act re misleading and deceptive conduct, and there's another provision re 'unconscionable conduct'. THese are very wide provisions and drafted with a view to protect us consumers.

Given the amount involved, most judges in the lower courts will be sympathetic towards your situation. His lawyer would be well of this and will advise builder to settle (eg: might let you out and return your deposit, or keep 10% but no more) ........

Good luck to you! Keep us posted on how you go and hope it all works out for you!

 

[MC1]

Hope it's not 18 square metres!!!

The Y-man

exactly ......

 

[Peter_Tersteeg]

An appartment of this size can be financed as mentioned. There's a couple of mainstream lenders who can do it and a few smaller ones. I'd anticipate an LVR of 60% however.

As others have indicated, I'd consider finding a way out of the deal, these don't make the best investments and are often overpriced.

 

[Pearl]

Dear All

Having a break away to gain some fresh thoughts and again us sisters are really appreciative of all your comments so far.....

Spoken to their lawyer: using those big legal jargons and starting a light threat of suing your bum off etc. (are they really going to screw 200K out from us...)

We have now our lawyer in place ready for the long haul and hopefully is not painful (financially) exit and will keep u guys updated.

Pearl

 

[deejay]

Many places have public interest law bodies and community legal centres that will take cases that might set a precedent that is helpful to the wider community. If there is no existing precedent about the materiality of "studeng accommodation" you might be able to get someone to take it up.

 

[Pearl]

thank you deejay and we are now keeping all angles focused and my sis is just worrying about legal implications as she is just so young and a harsh reality is a bit much for her to take. She understands & accepted the assumption that she has lost all her money and hope to move on and be smarter next time.