Purchaser killing deal

[Sunfish]

I'm reluctant to jump in here and certainly not going to mention protocol but I would think the selling agent should continue to achieve a sale to whomever he/she can find. If the price achieved is equal to or above the contracted price you keep the deposit and all's well.

If you do not achieve the price the defaulter is then, legally at least, bound to make up the shortfall. It's a private decision of yours just how far you pursue this.

If settlement is past due, put it back on the market.

 

[geoffw]

I don't know about WA, but in NSW, as I understand, if the purchaser pulled out of a contract, they would be liable for 10% of the purchase cost- regardless of the size of the deposit.

But I think the REA takes his commission out of that sale, as well as the subsequent sale.

 

[wealthyjay]

Yes, the defaulter is legally liable for any shortfall and/or damages. However, from my recent experiences its not so easy to exercise your legal "rights".

 

[Dazz]

However, from my recent experiences its not so easy to exercise your legal "rights".

Exactly....and this is my only point.

It only takes 10 minutes and one letter, all at very little cost to enunciate your 'rights'.

However, if the opposing party to the Contract tells you to go jam it up where the sun don't shine, it takes many years and buku $ to enforce or exercise those 'rights'.....and even then it may come down to the civil mag or judge hearing the matter.....and then of course if they have deeper pockets than you, they simply start the appeal process all the way up to the High Court if they wish to spend the dollars and time screwing you to the wall.


The vast majority of people are happy to recommend the first step....but if it descends into the legal vortex, almost all sane people would not pursue it, on the grounds of stress and money and time.....in that order.

 

[Pushka]

I don't know about WA, but in NSW, as I understand, if the purchaser pulled out of a contract, they would be liable for 10% of the purchase cost- regardless of the size of the deposit.

But I think the REA takes his commission out of that sale, as well as the subsequent sale.

Yup, the REA guy will get their money regardless..I think it is in the contract perhaps - their job is to get the sale contract signed by both parties and perhaps there is no requirement on them to ensure that settlement occurs - especially if there is no subject to finance conditions?

 

[Savanna100]

I think if it was me, I'd cut my losses, pocket the deposit and instruct my RE Agent to find a new purchaser and sell it all over again. You may well make even more next time around.

Just my opinion

 

[wealthyjay]

I think if it was me, I'd cut my losses, pocket the deposit and instruct my RE Agent to find a new purchaser and sell it all over again. You may well make even more next time around.

Just my opinion

Almost at this point. will see what the outcome of the latest round and will go from there.

 

[Savanna100]

I suppose this reinforces the importance of taking as much deposit as you are legally allowed to, imagine if you had agreed to something less than the maximum.

 

[wealthyjay]

After lots of posturing, swearing, and associated carry on we have finally settled!

I think they have finally accepted that their position was untenable and really couldn'targue the point anymore, and we didn't back down from our position that we have done all that we could do.

So now we can move on and live with a little more dignity, and possibly humility from the experience.

 

[sunshine]

Congratulations Wealthyay. You fought a long hard battle and emerged much stronger.

Well done for holding on.


Sunshine

 

[wylie]

Well done. It must be a relief for you.

Hope all settles well.

Wylie

 

[Celeste]

Excellant! Hope all goes well from here.

 

[wealthyjay]

Thanks guys. Its a huge relief and now we can move on.

Wife is not convinced its all over until the money is in the bank

 

[Pushka]

Great relief no doubt! I am sure the money is about to hit your bank account.

 

[Dis]

Congrats!

With regard to some of the issues brought up in this thread, I thought you may like to read the following article which states:

"Of course most agents’ listing agreements provide that full commission (you betcha!) is payable if the deposit is forfeited. So a seller can lose a sale, while the agent still gets paid. "

http://www.lawyersconveyancing.com.au/news/087_low_deposit.asp

 

[BayView]

Congrats!

With regard to some of the issues brought up in this thread, I thought you may like to read the following article which states:

"Of course most agents’ listing agreements provide that full commission (you betcha!) is payable if the deposit is forfeited. So a seller can lose a sale, while the agent still gets paid. "

http://www.lawyersconveyancing.com.au/news/087_low_deposit.asp

The Real Estate industry has set up all their Contracts to suit them first, everyone else second (or; not at all).
Clauses like this can simply be deleted from the Sale Authority Contract by putting a big black line through it.
Of course, it has to be done before the Authority is signed, and the Agent has to agree. If they don't there are plenty of other agents. They are pretty much all the same
Usually they do agree, but don't like it and will try to talk you out of it.
I have done this, as well as other clauses I didn't like.
For example; their commission. I cross out the percentage etc and put in a fixed dollar amount. Mind you; I haven't done much selling in recent years so it is not a regular occurrence, but you can do it.
But you need to be upfront with the agent when you call them to ask if they would be interested in selling your property (they never say no), and for a fixed amount (listen to the pause over the phone, then the reasons why not will flood out the phone receiver). Some will say no, some will say yes.
Now, I appreciate the "get what you pay for" idealism from some posters about this point, but I was an agent for a time, and I can promise you; most agents are doing the same work (or lack of) for everyone. They work a little harder if the sale looks like being a definite and in a short space of time, but other than that, they are busy and have lots of stock to sell - they will sell which ever property they can that gets them a quick commission. So the amount of commission is not that big an incentive; just the volume of them. It's no good to the agent to have a property that will earn them $10k in commission if it's not selling, but a few properties that will definitely sell and only have a $2k commission each are what they will push.
When I first heard of it, I thought that you couldn't change a Contract (in any situation of life), but it is simply words on paper that two parties are yet to agree to and sign, and until they do, there is no Contract.

 

[wealthyjay]

The Real Estate industry has set up all their Contracts to suit them first, everyone else second (or; not at all).
Clauses like this can simply be deleted from the Sale Authority Contract by putting a big black line through it.
Of course, it has to be done before the Authority is signed, and the Agent has to agree. If they don't there are plenty of other agents. They are pretty much all the same
Usually they do agree, but don't like it and will try to talk you out of it.
I have done this, as well as other clauses I didn't like.
For example; their commission. I cross out the percentage etc and put in a fixed dollar amount. Mind you; I haven't done much selling in recent years so it is not a regular occurrence, but you can do it.
But you need to be upfront with the agent when you call them to ask if they would be interested in selling your property (they never say no), and for a fixed amount (listen to the pause over the phone, then the reasons why not will flood out the phone receiver). Some will say no, some will say yes.
Now, I appreciate the "get what you pay for" idealism from some posters about this point, but I was an agent for a time, and I can promise you; most agents are doing the same work (or lack of) for everyone. They work a little harder if the sale looks like being a definite and in a short space of time, but other than that, they are busy and have lots of stock to sell - they will sell which ever property they can that gets them a quick commission. So the amount of commission is not that big an incentive; just the volume of them. It's no good to the agent to have a property that will earn them $10k in commission if it's not selling, but a few properties that will definitely sell and only have a $2k commission each are what they will push.
When I first heard of it, I thought that you couldn't change a Contract (in any situation of life), but it is simply words on paper that two parties are yet to agree to and sign, and until they do, there is no Contract.

Absolutely true. You can do whatever you like to a contract, so long as all parties agree. Just make sure there is no wriggle room in anything you put, trust me on this, al lot of grief we had was due to the slight maneuver room given by the wording of a particular clause.

As for agents fees etc, yes, always negotiate and specify the amount. If they want the business they will negotiate, and most do. In these times agents have grown fat and lazy, so in most cases they aren't worth the sums you pay them IMO. Like anything, negotiate and be willing to get yourself the best deal possible.

BTW the money is in the bank!! So happy, and actually kind of lost now that the struggle is over. Now shopping for a new place, and its kind of weird, but in a good way

 

[Bangers]

I pretty sure that the REA has no rights on the deposit. They are only due payment when settlement is complete. Because until that time he/she has not sold anything.

I don't believe this is true.

Once a contract goes unconditional, the REA is expecting his fee's, which typically is encapsulated in the deposit. So unconditional, and no settlement the dodgy REA will be chasing him moneys.

 

[Celeste]

I don't believe this is true.

Once a contract goes unconditional, the REA is expecting his fee's, which typically is encapsulated in the deposit. So unconditional, and no settlement the dodgy REA will be chasing him moneys.

Ah, one good reason for doing your own settlements and holding the deposit in a trust account, that needs 2 signitures. Even so I will have a read of the contract.

 

[Ausprop]

Ah, one good reason for doing your own settlements and holding the deposit in a trust account, that needs 2 signitures. Even so I will have a read of the contract.

under WA real estate law the agent has no entitlement to the money until the property has settled. A 'dodgy' real estate agent that helped himself t Trust funds prior to that date would last abotu 2 seconds before REBA shut him/her down