Rescinding Contract - Can I claim expenses?

[Flossy]

I am in the process of rescinding the contract for my first IP. This link is to my previous post when this was looking likely.
http://somersoft.com/forums/showthread.php?t=95290

1/ There are outstanding sewer and water works for the subdivisions to be completed. These works could come in at between $20,000 & $50,000 according to a plumber experienced in this area. The water authority has made numerous requests over several years which have been ignored, for the vendor to be rectify these issues.
2/ The electricity meter is on another building with no right of access so the buildings owner is within their rights to ask for a right of access and charge up to $15,000 for it.
3/ Minor works undertaken by the vendor's real estate agent and added to the purchase price have not been completed.​

Am I likely to be able to claim my expenses as damages from the vendor? The vendor, their solicitor and I believe the selling agent were aware of the issues and tried to conceal them.

If the subdivision was non complying or incomplete, why didn't the documents in the contract give this away and should the conveyancer have picked it up? I read the contract but I don't remember the details and a lot of the diagrams and statements I was not able to understand, beyond pinpointing my land and various easements, streets etc.

Has anyone had experience rescinding and getting expenses as well as the deposit returned?

I have a solicitor looking over the details but awaiting more information from my conveyancer.

Thanks all,

 

[thatbum]

Has anyone had experience rescinding and getting expenses as well as the deposit returned?

Even if someone else had a similar experience, this sort of thing is way too technical to get anything meaningful from it.

This is where you rely on the advice from your solicitor, and probably ignore everyone else's uneducated opinions or commentary.

How much extra costs are you seeking exactly?

 

[Flossy]

Vendor paying purchasers out of pocket expenses.

I was wondering if it has ever happened or am I dreaming.

I'm claiming over $10,000 which is the cost to date of finding the property, finance and conveyancing. I don't know what the legal costs will be yet but intend to claim that.

 

[Terry_w]

It is unlikely. You should ask though.

If you are contemplating court action save your money up first.

$10k is a very large amount, what did you do a development feasibility study or something?

 

[Flossy]

Hello Terry,

$10,000 includes the Buying Agent and the Mortgage Broker, Pest and Building Inspections and Conveyancing.
These are costs I will have again, if and when I am confident enough to try again so I feel it is reasonable for the vendor to reimburse me.
I wanted to buy around Newcastle but don't live in NSW so will probably want a buying agent to do the running around again.

Cheers,

 

[Terry_w]

OOOw.

$10k for buyers agent. These costs won't be tax deductible either.

 

[marg4000]

Will you have to pay the buyer's agent if the property does not settle?

Should the buyer's agent have picked up the problems?
Marg

 

[Propertunity]

Will you have to pay the buyer's agent if the property does not settle?

All reputable BAs I know, get paid on unconditional exchange, rather than settlement, however, in Flossy's case, if she was unsuccessful in a claim against against the vendor, would offer their services free of charge to secure another property (since what has happended to Flossy, is no fault of her own).

Should the buyer's agent have picked up the problems? Marg

From my reading of Flossy's situation, these problems only surfaced during the final part of the conveyancing process - just before settlement was due. There is no way any of these issues would be known until, in this case, the conveyancer called the utility companies to get a final account for the settlement cheques to be drawn - and that looks like when it started to come to light.

It is "vendor disclosure" now in NSW not "buyer beware" anymore, but if the vendor does not disclose, then this is an example of what can happen, unfortunately.

 

[Flossy]

Buyers Agent

Hello Marg,

I had to pay the buyers agent on exchange of contracts.

Possibly he should have noticed irregularities such as no electricity meter on the house and no water meter at the street. The fact that there is a water meter at the house could be deceptive unless you know that water meters are required to be at the street. Possibly he should have know this.
My daughter picked up that all 3 electricity meters were on the adjacent house and none on the house we were buying.

Cheers,

 

[Flossy]

From my reading of Flossy's situation, these problems only surfaced during the final part of the conveyancing process - just before settlement was due. There is no way any of these issues would be known until, in this case, the conveyancer called the utility companies to get a final account for the settlement cheques to be drawn - and that looks like when it started to come to light.

It is "vendor disclosure" now in NSW not "buyer beware" anymore, but if the vendor does not disclose, then this is an example of what can happen, unfortunately.

Exactly right, the issues came to light when we requested a final account from the water corporation.
The electricity aurthority claims no interest in where electricity meters are but my conveyancer was very interested for the above mentioned reasons.

Thanks,

P.S. I am changing my name!

 

[Flossy]

All reputable BAs I know, get paid on unconditional exchange, rather than settlement, however, in Flossy's case, if she was unsuccessful in a claim against against the vendor, would offer their services free of charge to secure another property (since what has happended to Flossy, is no fault of her own).

If it comes to that, it would be much appreciated but the outcome we are looking for is for the 'non disclosing', to put it politely, vendor to pay me for the buyers agent and the mortgage broker fees. It only seems fair that they should not be out of pocket for their wasted time but I'm not sure fair counts in property law.

Cheers,

 

[Flossy]

Building Inspection

Also, this line of discussion has made me wonder if the building inspection should have picked up the odd water meter placement, lack of an electricity meter or sewer connection?

 

[Propertunity]

Also, this line of discussion has made me wonder if the building inspection should have picked up the odd water meter placement, lack of an electricity meter or sewer connection?

I think you'll find most building reports write themselves out of (disclaim) anything to do with electrical, plumbing, air-conditioning, asbestos, mould, ceiling joists covered by insulation, etc etc.

 

[Flossy]

All reputable BAs I know, get paid on unconditional exchange, rather than settlement, however, in Flossy's case, if she was unsuccessful in a claim against against the vendor, would offer their services free of charge to secure another property (since what has happended to Flossy, is no fault of her own).

Further to this, Alan at Propertunity worked his bum off, for no addtional charge, finding another suitable property for me to buy. He even bid for me at the auction and did the final inspection.