forfeit of deposit???

[Melbournian]

i would just make an agreement with the vendor that he provide alternate means of accommodation, storage expense etc.

i remember as a vendor doing this and making an offer to pay for accommodation for my purchaser as i delayed it by 1 month. it's not a big drama i would think. just make sure all the correspondance is done through your solicitors.

 

[lizzie]

Okay - let me see if I get this straight.

You're buying a property that is tenanted but the contract says vacant possession. Tenant won't be out until (say) 6 weeks after settlement date.

You start out ranting about pulling out of the contract because you are annoyed ... but then change tack to imply you still want the property - you just want to extract the maximum amount of money out of the vendor as possible, just to be an utter *******. Not good karma.

So, assuming you don't pull out, you have two options:

- delay settlement until vacant possession is available, with vendor paying penalties as per contract. In NSW it's 10%pa after the initial 14 day notice is sent.

- settle with tenants in place and extract them yourself, whilst taking the rent.

Then you go on to say that you are trying to sell your own home - so obviously haven't "sold" or exchanged contracts on that ... so what's the hurry? A delay of the new home settlement (with contracted penalties) allows you extra selling time for current house. That's a plus IMO.

Personally I'd destress and take the first option.

Why would you demand compensation for accomodation/storage that you don't need because you haven't sold your own home yet? I don't get that. That's just being nasty for the sake of being nasty.

Unless the new property isn't in the same city. Do you have to move to a different city to start a new job or something? Then, yes, accomodation would be something to put to the vendor.

And why have you (apparently) got a huge bill from your solicitor for dealing with this? What did he do, under your instruction, to incur this cost?

Vendors solicitor contacts yours and say "oops" ... your solicitor contacts you and says "oops, here are your options" ... you tell solicitor your preferred option, which he tells vendors solicitor. End of story. Half an hour at the most ... or if he's like my conveyancer, it's a set fee so costs nothing extra.

Did you spent ages on the phone with him having a massive "life isn't fair" whinge, charged in 7min increments ... ?

I don't get what all the stress and threats and VCAT's are about ... chill and be logical.

 

[tobe]

Why would his solicitor want to work for free? It is not the solicitor's fault that the vendor has rented the property after exchange.

And, Melbourne, are you using a solicitor or a conveyancer? You say both in your posts.

It was being a little bit naughty with that suggestion, as its obviously not realistic a reward to justify the expense of the battle, to either the client or solicitor.

 

[Terry_w]

I agree wit Lizzie. The purchaser's solicitor wouldn't have had to do much extra work at all - maybe a few phone calls.

 

[melbourne]

Okay - let me see if I get this straight.

You're buying a property that is tenanted but the contract says vacant possession. Tenant won't be out until (say) 6 weeks after settlement date.

You start out ranting about pulling out of the contract because you are annoyed ... but then change tack to imply you still want the property - you just want to extract the maximum amount of money out of the vendor as possible, just to be an utter *******. Not good karma.

So, assuming you don't pull out, you have two options:

- delay settlement until vacant possession is available, with vendor paying penalties as per contract. In NSW it's 10%pa after the initial 14 day notice is sent.

- settle with tenants in place and extract them yourself, whilst taking the rent.

Then you go on to say that you are trying to sell your own home - so obviously haven't "sold" or exchanged contracts on that ... so what's the hurry? A delay of the new home settlement (with contracted penalties) allows you extra selling time for current house. That's a plus IMO.

Personally I'd destress and take the first option.

Why would you demand compensation for accomodation/storage that you don't need because you haven't sold your own home yet? I don't get that. That's just being nasty for the sake of being nasty.

Unless the new property isn't in the same city. Do you have to move to a different city to start a new job or something? Then, yes, accomodation would be something to put to the vendor.

And why have you (apparently) got a huge bill from your solicitor for dealing with this? What did he do, under your instruction, to incur this cost?

Vendors solicitor contacts yours and say "oops" ... your solicitor contacts you and says "oops, here are your options" ... you tell solicitor your preferred option, which he tells vendors solicitor. End of story. Half an hour at the most ... or if he's like my conveyancer, it's a set fee so costs nothing extra.

Did you spent ages on the phone with him having a massive "life isn't fair" whinge, charged in 7min increments ... ?

I don't get what all the stress and threats and VCAT's are about ... chill and be logical.

i had to contact a solicitor to know where we were standing law wise. He charged me $500 for 4 emails and a "opinion". i dont think its fair being that he didn't advise of any fees & $500 for that is overpriced.

If i could get money out of the vendor why wouldn't I???? they made a huge mistake and i want them to pay for it. they'd do the same with us. Plus, i need cash for renos and the solicitor of course.

 

[Aaron_C]

melbourne,

You have to understand how contract law works. In property law you can only enforce specific performance - i.e. force the seller to complete the contract as agreed. You are also entitled to obtain damages (i.e. money) for any loss you have incurred due to the vendor's stuff-up. So you may have a case to claim back any extra legal costs and/or rental you have lost due to the inconvenience.

 

[Terry_w]

$500 is a fair bit. What was he quoting you originally?

 

[pennyk]

i had to contact a solicitor to know where we were standing law wise. He charged me $500 for 4 emails and a "opinion". i dont think its fair being that he didn't advise of any fees & $500 for that is overpriced.

If i could get money out of the vendor why wouldn't I???? they made a huge mistake and i want them to pay for it. they'd do the same with us. Plus, i need cash for renos and the solicitor of course.

Is this $500 in addition to your normal conveyancing legal fees? If so, then I agree that you are being overcharged.
In my experience, solicitors will charge a fairly much fixed rate plus disbursements for either selling or buying, and all of this extra work is incorporated into that rate.

 

[Sunfish]

Seems to me your beef is with the solicitor, not the vendor.

 

[melbourne]

$500 is a fair bit. What was he quoting you originally?

he didnt quote: i sent him an email about my situation asking for advice.
Before the advice was given, no fees were discussed. We exchnaged 4 emails and his "opinion" was sent.

then after 3 days, i receive an invoice for $500.

 

[melbourne]

Is this $500 in addition to your normal conveyancing legal fees? If so, then I agree that you are being overcharged.
In my experience, solicitors will charge a fairly much fixed rate plus disbursements for either selling or buying, and all of this extra work is incorporated into that rate.

yes its in addition but he's a different person, hes not my conveyancer.

 

[Collector]

Why didn't you ask your conveyancer for advice - do you not trust your conveyancer?

 

[melbourne]

Why didn't you ask your conveyancer for advice - do you not trust your conveyancer?

ididnt ask my convayancer because i just dont trust her, thats right

 

[pennyk]

yes its in addition but he's a different person, hes not my conveyancer.

I guess that is your challenge.... You have sought separate legal advice from him, so I think you now have to pay for that. $500 is probably not an unreasonable amount for a separate legal consultation. They probably should have given you a quote/ idea about costs.... but I dont think you have much of of a leg to stand on to not pay for that legal advice.

Its a shame that you dont trust your conveyancer enough to have them manage the whole process. It probably would have gone much more smoothly if they had managed the issue (and certainly cost you less). My suggestion is to find someone next time that you would trust to manage the complete purchase/ selling process. there is invariably a complication in the process of buying and selling property, and its good to know that you have a team in place who can deal with those issues.

 

[Terry_w]

That is reasonable then - if it is a separate lawyer.

That is why, i think, it is best to use a lawyer rather than a conveyancer - just in case you need extra advice down the track.

 

[lizzie]

ididnt ask my convayancer because i just dont trust her, thats right

That's a pity - my conveyancer knows more about buying and selling property than any solicitor I know, because that is all he does, and all he has done for 20+ years.

As a separate entity (your solicitor), I'd say the fee is fair.

 

[NedKelly]

So having got a legal opinion why are you asking Somersoft members what to do? What advice did you get from the solicitor?

 

[melbourne]

So having got a legal opinion why are you asking Somersoft members what to do? What advice did you get from the solicitor?

because the guy im about to pay $500 said the deposit will be forfeit and as far as i know, "forfeit" means losing the deposit. But he was wrong.

 

[Melbournian]

i would just leave it with the convenyancer.

i always use lawyers to do the talking and fighting. $200-300 more but covers all the unnecessary due diligence checks and stress as it is a fixed price.

but seeing you were upset that the tenants were still in till settlement - it would be unreasonable to cancel the contract of sale because of that - i would just ask for compensation and it would also be hard to justify payment of $500 just because you wanted a 2nd opinion. things you could ask for are accommodation costs storage costs etc as those were some of the costs i have dealt with from buyers.

 

[NedKelly]

because the guy im about to pay $500 said the deposit will be forfeit and as far as i know, "forfeit" means losing the deposit. But he was wrong.

I am not sure he is wrong. As has been said before, you haven't reached settlement yet so if you pull out now I think you would definitely forfeit your deposit. And as Aaron_C has said, in property law you can only enforce specific performance - i.e. force the seller to complete the contract as agreed. You would then be entitled to sue for damages but you can't just pull out and expect to get you deposit back.