want to get back at dodgy agent

H

HelenS

hello soon-to-be-billionaires,
we have put an offer on a house and it has been accepted by vendor. Then, we tried to negotiate a price reduction based on really, really bad building report.
On Sunday, the vendor agreed to give us a discount; however, they have changed their minds today and rejected our offer.
When I started to look at real estate sites again, I saw that the property is still being advertised for sale and there were no "Under contract" note on it.
That and the rejection of our offer make us suspect that agent kept showing people through the property and was taking an offers while the house was under our contract.
Now, the question is, how can we check all this out and take some legal steps to fix this agent misbehavior?

P.S. the agency is some kind of Jenman approved crap
 
Hiya

Until a contract is unconditional, most agents will still show the property and not take it "off the market"

While none of us like that as a buyer, its commercial reality.

ta
rolf
 
Is there a legal requirement to post 'under contract'? There is no requirement for the vendor to reduce their price based on a bad building report; there is simply the availability for you to back out of the contract (assuming you put 'subject to satisfactory building report' in the contract). And given that you no longer wish to pay the contract amount, doesnt that suggest the contract is no longer valid anyway? In which case, if I was a seller I would be asking the agent to keep advertising it until I got the contract price. Sorry, but I don't think this is dodgy.

When we purchased our PPOR, we had a signed contract, with no conditions or 'subject to' clauses; yet the Agent still had an open inspection on the next day. And we didnt think that was a problem as the cooling off period was still active.
 
From what I understand agents do not show properties once it is under contract, I think one even told me it's illegal. :confused:

They usually continue advertising and taking details though until the property gos unconditional.
 
Agents used to often keep showing and get a "backup" contract in case the first one fell over. It was not done sneakily, so I assume it was okay to do.
 
I bought my IP via a backup contract. Obviously the agent was showing us through despite a conditional contract. The agent then got a second backup contract in case ours fell through, so they must have continued to show people though. What is the problem with this? Did your contract specify that they can't take more people through? Sounds like you are directing your frustration about them not accepting a reduced price towards the agent, which is silly as they haven't done anything wrong.
 
Sorry, Helen, but I'm not sure exactly which part of this you think reflects badly on the agent. Which part exactly are you unhappy about? The agent is allowed to accept "back-up offers" whilst your contract is conditional, and really should do so, to protect the vendor's interests.

Do you want the property at the price agreed prior to the building inspection or not?

If yes, then surely you can still go ahead with the purchase. Or has your time available to go unconditional expired? If so, then your reluctance to go unconditional at the agreed price may have cost you the purchase.

If no, then the vendor's under no obligation to drop the price, and surely your only disappointment in this case is that the vendor wants more than you're willing to pay, which has nothing to do with the agent.

I think perhaps you really wanted this property, and underestimated how much competition there was from other buyers, and now you're annoyed with yourself for not just proceeding at the previously agreed price. If so, I sympathise because it's a difficult lesson to miss out on your dream home, but you can't blame the agent for that.

If you really want a property as your home and there's competition to buy it, you have to pay the price and be decisive and aggressive in going after it, or risk missing out.

I hope you can either come to an agreement with the vendor of this property, or find another home that's right for you.
 
I don’t see what the problem is either. There is no legal requirement that the agent stop showing the property after it’s gone under contract. If you’d gone through with the offer, no harm done. If your contract fell over (as it may well do) then the agent has potential back-up buyers in the wings. The agent works for the sellers. As your own case has shown, just because a property is under contract doesn’t mean a transaction will take place. If I was the seller, I would ask the agent to keep showing people through.
Alex
 
did the vendor agree to the reduction in price in writing or just verbally?

There is no legal requirement to stop showing a property whilst under contract...in fact a good agent will continue to promote the property at least until its unconditional. Many agencies now days are taught not put an "under contract" sign up until the property is unconditional.

A smart agent would advise the buyers of this as it puts some pressure on the buyer to complete the conditions as soon as possible, but again the legality is not an issue...remember the agent is legally required to obtain the best possible result for the SELLER, so that would indicate they are to do as much as they can to secure a result for them.

If you were attempting to renegotiate, then there is a point that the contract becomes null and void - check the legalities of that. However, if your contract amendment was not agreed to in writing you may have a problem.

sorry...
 
ozperp said:
Sorry, Helen, but I'm not sure exactly which part of this you think reflects badly on the agent.
Click to expand...

this is the response we received from our conveyancer

We advise the agent could be in breach of his duty and professional code of conduct if he marketed the property while the contract is still in force.
Click to expand...

I really intend to go through with it when I find out what exactly was violated by showing people through "under contract" property, and get the agent's license suspended if this is what should be done in this case.
No one, and I mean no one, has the right to break the law no matter what his/her intentions are.
Sorry, sellers that were hoping for a price rise in here, I am just trying to follow the regulations.
 
HelenS said:
I really intend to go through with it when I find out what exactly was violated by showing people through "under contract" property, and get the agent's license suspended if this is what should be done in this case.
No one, and I mean no one, has the right to break the law no matter what his/her intentions are.
Sorry, sellers that were hoping for a price rise in here, I am just trying to follow the regulations.
Click to expand...

Do you really think it's worth it? Better to use your energy to finding another property, no? If you're going to get this worked up every time an agent does something dodgy, property is probably not the right game for you.
Alex
 
Urban Cowboy has explained how it is normal to get back up contracts. In Queensland these back up contracts cannot come into force unless your contract falls through for some reason. Once a contract is signed by both parties, you are safe as long as you do all that is required in the time limits required. Nobody else can gazump you after the contract is signed by both parties.

Is your solicitor a Queensland one?
 
urban cowboy said:
did the vendor agree to the reduction in price in writing or just verbally?
Click to expand...
yes, they agreed on price reduction in writing and has instructed their solicitor accordingly.

We did not try to push them into poverty; the house has significant structural faults and we only demanded price reduced by the sum required by underpinning contractors.
In fact, I doubt it will pass any proper building inspection as the slab has sagged by 10cm.
 
wylie said:
Urban Cowboy has explained how it is normal to get back up contracts. In Queensland these back up contracts cannot come into force unless your contract falls through for some reason. Once a contract is signed by both parties, the agent cannot gazump your contract.

Is your solicitor a Queensland one?
Click to expand...
No, Victoria, AKA "the place to be". Actually, after comparing stamp duties in different states the former is doubtful.
 
alexlee said:
Do you really think it's worth it? Better to use your energy to finding another property, no? If you're going to get this worked up every time an agent does something dodgy, property is probably not the right game for you.
Alex
Click to expand...
I don't think writing a couple of appropriate letters/faxes demand that much of my energy
 
Helen

hi Helen,

Cannot disagree with you more, if I was the owner of the property I would want the agent to keep advertising my property until it was unconditional.

Should your offer had gone unconditional then you would have owned the property, all offers after yours was accepted would have been back up offers.

The only thing that seems wrong in this story is your attitude Helen! I have a feeling that you would disagree with this also.
 
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