Owner took out the bond prior to settlement without letting us know

luckily I've got landlord insurance but it only cover me up to 10 weeks rent.

I haven't formally notify my insurance company because I don't want to affect my premiums in the future as I'll need to disclose I've made claims for the last 2 years and this is not my only IP, it will have a domino's effect in terms of cost for my other IP's insurance in the long run.

My best bet right now is the owner realize he has done something really stupid and just pay back the bond so I can use it to cover the rental lost and move on.
 
I'd still make sure you're doing everything you can to get the tenant out, make sure it's all done by the regulations 100%.

The longer they're in there the more potential for it to KEEP on affecting your income.
 
Like Lil, I'm not sure why you're having trouble evicting; you don't have to speak directly with them, or get them to agree to be evicted, just serve all notices as per the legislation.
 
luckily I've got landlord insurance but it only cover me up to 10 weeks rent.

I haven't formally notify my insurance company because I don't want to affect my premiums in the future as I'll need to disclose I've made claims for the last 2 years and this is not my only IP, it will have a domino's effect in terms of cost for my other IP's insurance in the long run.

My best bet right now is the owner realize he has done something really stupid and just pay back the bond so I can use it to cover the rental lost and move on.

If he is behind by $1.5K I doubt you will have him give you the bond to lodge.

I'd say you have no hope of being covered by insurance in the circumstances. You are hiding the fact from the insurer that there is a problem. I reckon they will decline any claim.

I'd also just get him out, using appropriate notices and I would at least pursue the vendor for releasing the bond early.

Good luck.
 
yea the problem with them is my agent has been trying to contact them to notify them to evict, however, every time the agent went there its only the daughter answer the door and never receive any yes or no to the eviction notice, my solicitor tell me that this might be a bit tough because the tenants might be already on the black list (it was privately leased with the previous owner).

I might be over worried but we will see, I've spoken to the agent again this morning and she tell me she hasn't receive any feedback or contact from the tenants, she has however, handed in the eviction notice to them yesterday and they have 7 days to move out, if after 7 days they are still there we will be calling QCAT.
 
yea the problem with them is my agent has been trying to contact them to notify them to evict, however, every time the agent went there its only the daughter answer the door and never receive any yes or no to the eviction notice, my solicitor tell me that this might be a bit tough because the tenants might be already on the black list (it was privately leased with the previous owner).

I might be over worried but we will see, I've spoken to the agent again this morning and she tell me she hasn't receive any feedback or contact from the tenants, she has however, handed in the eviction notice to them yesterday and they have 7 days to move out, if after 7 days they are still there we will be calling QCAT.

I doubt it matters a jot whether the daughter says "yes or no" to the eviction notice. It needs to be served to the address, and is not up for debate by whoever answers the door. It could go in the letterbox (guessing the rules are similar here as in other states).

Your agent sounds like she doesn't have much clue how to deal with this.
 
If he is behind by $1.5K I doubt you will have him give you the bond to lodge.

I'd say you have no hope of being covered by insurance in the circumstances. You are hiding the fact from the insurer that there is a problem. I reckon they will decline any claim.

I'd also just get him out, using appropriate notices and I would at least pursue the vendor for releasing the bond early.

Good luck.

Yea generally I would do that but the previous owner took the bonds prior to my settlement....so there are no bond held at all........
 
My best bet right now is the owner realize he has done something really stupid and just pay back the bond so I can use it to cover the rental lost and move on.

Sorry. I misread your comment and thought you meant you wanted the tenant to lodge a fresh bond. I realise now you are hoping the vendor to pay you back. I think that line is worth pursuing, but don't spend any money on it. That is why I thought maybe your solicitor may do your a favour or charge just a little for writing a letter on solicitor letterhead. It could work if they are told legally they have done the wrong thing. Might scare them into giving it back. If you don't pay anything for the letter, you have lost nothing.
 
In the Contract of Sale, is an Item in the Schedule under "Matters Affecting Property". This is where the tenancy details are listed. These include rent paid,, as well as bond paid. I assume that if those items were completed, then any change should have been notified, as set out in the contract, and your solicitors should have approached the sellers solicitor about "adjustment" details just prior to settlement and the change should then have become obvious. Read you Schedule and Clause 2.6 of your Contract as it will help explain how things should have occurred.
 
Good Solicitor

Sorry. I misread your comment and thought you meant you wanted the tenant to lodge a fresh bond. I realise now you are hoping the vendor to pay you back. I think that line is worth pursuing, but don't spend any money on it. That is why I thought maybe your solicitor may do your a favour or charge just a little for writing a letter on solicitor letterhead. It could work if they are told legally they have done the wrong thing. Might scare them into giving it back. If you don't pay anything for the letter, you have lost nothing.

Well so far my solicitor haven't disclose if this is going to cost me anything, but generally he is very nice, me and my brother all up bought about 10 IPs and we used him every time, I've also referred friends to him before.

last time I was so close in closing the deal and I pulled out because of the inspection report and he didn't charge me anything. we will see how it goes.
 
Good advise

In the Contract of Sale, is an Item in the Schedule under "Matters Affecting Property". This is where the tenancy details are listed. These include rent paid,, as well as bond paid. I assume that if those items were completed, then any change should have been notified, as set out in the contract, and your solicitors should have approached the sellers solicitor about "adjustment" details just prior to settlement and the change should then have become obvious. Read you Schedule and Clause 2.6 of your Contract as it will help explain how things should have occurred.

Hi Pete,

That's a very good advise, I'm jumping onto my contract right now to find the clause. thanks heaps!
 
Appreciated

In the Contract of Sale, is an Item in the Schedule under "Matters Affecting Property". This is where the tenancy details are listed. These include rent paid,, as well as bond paid. I assume that if those items were completed, then any change should have been notified, as set out in the contract, and your solicitors should have approached the sellers solicitor about "adjustment" details just prior to settlement and the change should then have become obvious. Read you Schedule and Clause 2.6 of your Contract as it will help explain how things should have occurred.

Thanks for the advise Pete, yes I found it and it clearly stated that there are bonds held, now I can use this clause to go against the owner to recover the lost. thank you so much :)
 
Have you notified your landlord Insurance company?, this may come into play if you need to make a claim.

Typically if the rental was in arrears on the day that coverage started, lost rent is not covered. You have to clear all arrears before coverage for non-payment starts.
 
Typically if the rental was in arrears on the day that coverage started, lost rent is not covered. You have to clear all arrears before coverage for non-payment starts.

But I only been notify after i purchase the insurance and the owner has privately settled this matter with the tenant (by finalizing the bond prior to contract settlement).

and the tenants did pay me rent when i first took over, they started to short pay after 1 month....
 
Hi

I am no expert in this area.

However I would be questioning the solicitor that you used when you purchased the property. They should have attended to this as part of the conveyancing process and made sure that the bond was transferred from the previous vendor to you considering that a tenant was in the property.

Regards,

alicudi
 
First read the lease, check what last minute changes the previous owner made with the tenant. Hopefully if it's now the same PM so they should know of any changes made to the document and if they were aware of a sale in progress should have alerted someone or been suspicious of last minute changes. At Tribunal/Qcat etc demand rent arrears, bond, cite all breaches, ask for all orders even if it totals 15 orders. Tribunal should help. However, tenant has done this in cahoots with the previous owner so perhaps the tenant did not breach the lease at the time. Tenant can deny knowledge of where the sale process was up to. Now you need to enforce the conditions of the lease but first see what's in it.
Good luck
Cheers
crest133
 
If buying a property with a tenant in place, might there be a case for advising the bond authority, with a view to avoiding the issues detailed above?
 
Hi guys thanks for all the feedback above.

I'm now looking to lodging a formal complain against the seller's solicitor for misleading information in our communications and also any other government body I can contact to sue the seller breaching the Sale of Contract?

I understand the bond does not belongs to me but because I'm under the idea that there are bonds in place hence I've signed the contract with the existing tenant in place (otherwise I'll request vacant possession), but now that the tenant is owing me rent and I cannot recover my lost due to the misleading contract terms.

Any help from you guys would be greatly appreciated, I've done some research and apparently I can go to Legal Services Commission to complain about the un-professional act from the solicitor but how can I go about suing the owner for breaching the contract?

Cheers,

Terrence
 
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