Vendor won't allow access to property until deposit is released!

Hi All,

A friend has bought a property recently and he asked the selling agent to seek permission of the vendor for access to property for quantity surveyor, building inspector and property manager (to provide rental appraisals), and for himself to have another look at the property. However, the vendor refused saying his lawyer said no access to property should be allowed until the 10% deposit is released. Is this normal???
 
Where is the 10% at the moment - presumably in the lawyer or land agent's trust fund? In which case it's not really an issue. It doesn't get released until after settlement and if the vendor sticks to his guns, he may prevent the purchaser from being able to finance and therefore settle the property.

Sounds like the lawyer is possibly being a bit gung ho in protecting his/her client.
Probably time for the two parties to talk nice and the purchaser to indemnify the vendor against any damage caused by the access.
 
The solicitor is preventing access for a bulding inspection? I would call the agent and explain that I won't buy without such a report and am starting to think the owner has something to hide. Looks like the owner is jeopardising the agents commission.....

I am sure he will get things back on track. This is certainly pretty unusual behaviour in my experience.

I hope it all works out well.

Cheers,
 
Maybe the vendor is getting confused about the advice received from their solicitor and thinks you are requesting early access. Have your solicitor contact their solicitor directly to sort out the misunderstanding.

If it is not a misunderstanding consider walking as there may be serious problems they do not want you to know about.
 
Thank you, guys, for your replies.

The 10% deposit was paid by our friend into the selling agent's trust account. Our friend's solicitor has been away. Our friend thinks the vendor was being legalistic and maybe greedy as he said no access until the deposit was released. From our understanding is that the deposit would not be released until settlement when the 90% balance is paid. So, we think this vendor is greedy and wanted our friend to release the 10% deposit early. Our friend said he would not cooperate and would speak to his solicitor this week about it. Our friend did not know if it was the vendor who was being difficult or the vendor's solicitor. He wanted to speak to the vendor directly but the selling agent would not give him the contact details! Our friend was very annoyed and wanted to threaten to pull out of the deal but the contract has already been signed and deposit paid. His solicitor is yet to review the contract. The selling agent was not very sympathetic to our friend's request regarding access - maybe like Simon said, our friend began to think that the vendor might have something to hide. Will let you know what his solicitor says this week regarding this unusual situation. We have not come across vendors who behave like this.
 
WHERE ARE YOU!?!?!

Everyone, please, the laws are differrent in all the states, when you have legal questions like this, please advise which state's law they relate to!!!!!

asy :D
 
YOur friend is entitled to reasonable access.

If the agent can't arrange this (which will be the case if the vendor is being belligerent) get their solicitor to issue an entry notice.

SHouldn't be a problem.

Also, the deposit can be released prior to settlement, but the property has to have gone unconditional, and fulfilled several other requirements.

HAve a look at This SEARCH, there are lots of posts on deposit releases.

Hope this helps.

asy :D
 
update - should have access condition with contract

Thanks, asy, for the link. It was very useful and I told my friend about a few pointers in there.

Just to update on what my friend's solicitor said - buyer is entitled to one access (pre-settlement inspection) during the 5 days before settlement. My friend should have a condition inserted when he signed the contract asking vendor to allow reasonable access before settlement for particular purposes such as building inspection, valuer, quantity surveyor, property manager showing potential tenants. Now that the vendor has become belligerent, it is too late to do this. So, he will only get the pre-settlement inspection! I guess I have learned a tip here too - if in doubt about the goodwill of the vendor regarding access, then put the request in writing when the offer is made.
 
Unless the law has changed since I did Real Estate Law, your friend is entitled to as many inspections as she likes during 'reasonable hours' in the week prior to settlement...

However, next time, specific clauses are a good idea. Get a word doc list of reasonable clauses, get your solicitor to check them, and load them onto a little memory drive. That way, when you get to the agents, you can have them run the file up onto their computer and delete any you don't want. Have them print it out and attach to the contract.

Looks cool too.. hehe

asy :D
 
Good idea you have suggested, asy - have all the clauses in a stick drive and give them to the agents for insert in the contract as required. My friend was told by the selling agent that he would only have one access before settlement - as a courtesy of the vendor!!!, and he should not considered it as his right or entitlement. I think it is a load of ....
 
G'day Babushka,

My friend was told by the selling agent that he would only have one access before settlement - as a courtesy of the vendor!!!, and he should not considered it as his right or entitlement. I think it is a load of ....
And I'm with you !!! I've never had this kind of hassle in the past, and would be wanting to kick some serious butt if a vendor had THIS kind of attitude. And the RE agent, well, I HAVE to wonder if they are "related" to the vendor, and is helping to hide something !!!!

This sounds so weird !!!! Does your friend have any "out" left????

Regards,
 
Sounds seriously dodgy to me.

I'd be taking the view that unless unlimited reasonable inspections are permitted then the contract to purchase will fail. Thats it, be ready to walk . . .

Might teach the vendor/agent a lesson,

Ian
 
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