Vendor installed cheaper dish washer than specified in the contract

[davy]

Hi,

This is my first IP, and I have already run into problem with the vendor before the settlement.

Under the contract, the vendor agreed to include a dish washer FISHER & PAYKEL - DD603SS RRP $1886.

But recently, I visited the property and asked the vendor what dish washer did he installed? He asked to see and I found out that it is SIMPSON - 52B850WH RRP$1019.

I was not happy with it so I asked him to either replace it with the correct one or compensate me with $700.

The agent just called me this morning to say that the vendor will not replace or compensate. If I am not happy with it, he will terminate the contract and put it back on the market. He said that I got for a very good price and if he put it back on the market he will likely to get it for $20,000 extra.

Just wondering whether anyone can advise on if I want to sue the vendor for dishonoring the contract whether I can get compensated for the lost that I went through.

I have purchased the property of-the-plan and have put a 5% deposit since beginning of last year.


Thanks inadvance for your helps.

Davy

 

[asy]

Hi Davy,

Which state are you in???

If the contract has been signed by the vendor, unless he has put some kind of special ''out clause'' in the contract, the vendor is bound by it.

I would very strongly recommend you take this one to your solicitor and get them involved. I would think that you will be able to delay settlement until you are happy that all the conditions of the contract have been met.

hope this helps.

asy

 

[davy]

Thank you Asy.

I have just found out from my conveyancer that the vendor cannot
just terminate the contract. Confirming what you have just said.

I am from Victoria.

Davy

 

[Peter_Tersteeg]

I know someone who negotiated some extra features as part of an off the plan settlement. The vendor wanted an extra $5000 for the changes, although the purchaser never informed them of the extra cost, they just said they'd do it. The $5000 is in a trust account waiting for them to come to an agreement.

You may not be able to delay settlement over such a small item. You can probably get your solicitor to hold $1886 in a trust account (so the vendor doesn't get it at settlement). When they install the correct dishwasher and remove the incorrect one, they will get the final amount.

 

[asy]

Originally posted by davy
Thank you Asy.

I have just found out from my conveyancer that the vendor cannot
just terminate the contract. Confirming what you have just said.

I am from Victoria.

Davy

Great Davy!

PT is right, you won't be able to delay or stop settlement on such a small issue, but you will be able to have the amount in dispute held pending resolution of the issue.

Thanks for telling us where you (and the property!) are, it's much easier knowing, as all states are a little differrent, and that's why I didn't put this info in my first post.

The agent was trying to bluff you into accepting the contract as it is, don't let them. Stand your ground and it will all end fine!

asy

 

[davy]

I have been thinking about PT's comments.

It seems that I will be on the loosing end if the settlement cannot be delayed. Let say that $1886 is in a trust account and the settlement has been completed but the vendor refuse to give me the key to the property. I have to pay interest on the 100% loan but have no access to the property and therefore cannot rent it out. Currently, the interest on my 5% deposit is not much but the interest the vendor has on his loan is more. So if I can delay the settlement, I think eventually he will give in.

I think the vendor is trying to force me to terminate the contract so that he can resell it for a better price. When I put the deposit one year ago, the vendor was worry that he could not sell. So he just wanted to sign me up first. But now that he has sold the other two properties for quite a good price. He probably regretted that he has sold this property to me.

If I agree to the termination of the contract, can I claim compensation? Not really sure I want to do this knowing how dishonest this vendor is.


Davy

 

[geoffw]

It sounds as if a termination of the contract would not be a good thing. I would not go down that path.

Talk to your solicitor.

If that's the only discrepancy in the contract, it MAY not be worth pursuing.

But it may indicate that there are other discrepancies as well. Check out everything!

 

[bundy1964]

Originally posted by davy
I have been thinking about PT's comments.

It seems that I will be on the loosing end if the settlement cannot be delayed. Let say that $1886 is in a trust account and the settlement has been completed but the vendor refuse to give me the key to the property. I have to pay interest on the 100% loan but have no access to the property and therefore cannot rent it out. Currently, the interest on my 5% deposit is not much but the interest the vendor has on his loan is more. So if I can delay the settlement, I think eventually he will give in.

Hi Davy

If the vendor doesn't give you the keys at settlement I think he would be in deep ****

I would think consumer affairs would love him

bundy

 

[davy]

Just want to thank you all for the advice.

Finally the settlement came last Friday after a long wait due to vendor had problem with title registration and his bank lost the title just a few days before the settlement.

The vendor kept inststed that he would not replace the dish washer and would not pay the difference.
Checking with my lawyer but she suggested that the term in the contract was not strong enough to force the vendor to comply.

A day before the settlement my conveyant got my approval to delay the settlement until the matter was settled. The vendor was panicking and eventually agreed to my term.

It was a long fight. But finally I won the battle.

Cheers

 

[BUNDY]

Well done Davy, good to see you stuck to your guns until the final hour.

Great to see a win.

BUNDY