what do i do?? please help

[RE rocks]

I finalised a property with the settlement date on 28/05 in chelsea.

The contract said vacant possession. There are still tenants in there who are paying a rent of $300 per week for a 4 bedroom 2 bathroom( dont know when was it last reviewed)

I offered tenants to continue if they want to but pay $400 per week. They said no to this. I contacted couple of local agents in that area and they said they could get me $425-$450 per week @ 5% agent fee.

What are my rights???

If i have them for $350 per week my holding cost goes over the roof. The contratc of sale says vacant possession.

The exisitng tenant ( who is actually the RE agent) who sold me the property is emotionally blackmailing me. ( Soft stories here n there).

What do i do? how quickly can i get them out. i am scared that he might damage the property before 28/05..

your help would be appreciated.

 

[JoshyBoi]

Disclaimer: I'm not in Vic so don't know the law...

but if the contract says vacant possession that's what you get...

I'm suss on the fat that the agent is also the tenant...alarm bells going off...also he's paying 25%+ below market rent? sheesh...you did your research before you bought this place? You didn't overpay through some form of emotional blackmail??

 

[Pa1nter]

Surely there is some inside trading going on?
Is there an RE available to comment?

 

[Sheryn]

I finalised a property with the settlement date on 28/05 in chelsea.

The contract said vacant possession. There are still tenants in there who are paying a rent of $300 per week for a 4 bedroom 2 bathroom( dont know when was it last reviewed)

I offered tenants to continue if they want to but pay $400 per week. They said no to this. I contacted couple of local agents in that area and they said they could get me $425-$450 per week @ 5% agent fee.

What are my rights???

If i have them for $350 per week my holding cost goes over the roof. The contratc of sale says vacant possession.

The exisitng tenant ( who is actually the RE agent) who sold me the property is emotionally blackmailing me. ( Soft stories here n there).

What do i do? how quickly can i get them out. i am scared that he might damage the property before 28/05..

your help would be appreciated.

Settlement does not occur on the 28th May unless you have vacant possession, your solicitor talks to Vendor's solicitor.

Don't settle until you have vacant possession.
Simple tenant is a problem now they will be in problem if you settle with them in.


Regards
Sheryn

 

[craigb]

as sheryn said x 2, simple dont settle.

 

[meconium]

Agreed, they are playing games with you. If not vacant, don't settle and make a point of threatening to sue for damages.

 

[RE rocks]

Reply dont know how to quote

appreciate all your responses and i'm glad that there are people to help.

"I'm suss on the fat that the agent is also the tenant...alarm bells going off...also he's paying 25%+ below market rent? sheesh...you did your research before you bought this place? You didn't overpay through some form of emotional blackmail??"

I thought of the same. It's actually agents wife with 3 kids who are renting... i know he is lucky that the current owner has not put his rent up for whatever reasons but the market rent of Chelsea is around that mark. No i paid below the median price...

Surely there is some inside trading going on?
Is there an RE available to comment?

There is no inside trading i have spoken to RE agent few times to negotiate on the rent and sign a new lease with lodging bond etc. He said i dont have any bond or anything....

Settlement does not occur on the 28th May unless you have vacant possession, your solicitor talks to Vendor's solicitor.

Don't settle until you have vacant possession.
Simple tenant is a problem now they will be in problem if you settle with them in.

i agree its the tenant. he knows that i am being kind an offering him $400 a wekk as oppose to $450 but he doesnt want to pay over $350. he wants to take advantage of my kindness. i would hate to kick them out coz there kids are in year 12 and i understand how hard it'll be for them. But he doesnt want to negotiate.... i am worried he might damage the house...

Do i talk to the owners i.e ask this agent to give him their contact details. i dont have their rental history either...

 

[pully]

if your contract states vacant possession it clearly means tenants are not to be in the property, or anyone else for that matter?

if the vendor cannot meet that condition, vacant possession, then the contract is null and void.

settlement will not proceed.

do not negotiate, if you are happy with the original contract and conditions.

better to have a clean slate and manage the property as you wish and your terms.

it sounds a mess.

 

[RE rocks]

if your contract states vacant possession it clearly means tenants are not to be in the property, or anyone else for that matter?

if the vendor cannot meet that condition, vacant possession, then the contract is null and void.

settlement will not proceed.

do not negotiate, if you are happy with the original contract and conditions.

better to have a clean slate and manage the property as you wish and your terms.

it sounds a mess.

It is no doubt a mess. They have a dog as well and i hate to have pets in the house... would they do all the cleaning before they vacate.... i am seriously worried that he will cause damage to the property....

i will contact my solicitor tommor

 

[Propertunity]

Settlement does not occur on the 28th May unless you have vacant possession, your solicitor talks to Vendor's solicitor.
Don't settle until you have vacant possession.

Sheryn is correct. It really is not your probelm at all. It is the vendor's problem. They sold with vacant possession. It is up to the vendor to deliver what they sold - or you simply don't settle.

It is also up to the vendor to hand over the property in essentially the same condition as it was when you inspected it at the time you signed up to buy it. It is up to the vendor to deliver it in that condition - or you simply don't settle.

 

[RE rocks]

Sheryn is correct. It really is not your probelm at all. It is the vendor's problem. They sold with vacant possession. It is up to the vendor to deliver what they sold - or you simply don't settle.

It is also up to the vendor to hand over the property in essentially the same condition as it was when you inspected it at the time you signed up to buy it. It is up to the vendor to deliver it in that condition - or you simply don't settle.

but how do we make sure its the same condition... how to prove that there was no problems with the fence or marks on the wall etc

 

[womble66]

but how do we make sure its the same condition... how to prove that there was no problems with the fence or marks on the wall etc

I am in the same process and for me I will be doing an inspection pre settlement (sameday or day before) and if the property is not in the same condiction as it was when I inspected pre exchange I will be instructing my solicitor not to settle for the stated reasons.

Again its the vendors issue then to address my issues and for the solictiors to negoiate through to settlement.

A pre-purchase building inspection may assist verify your findings and also any photos that may be available (which is easy for me as my partner is a bit snap happy).

I think its not to much of a worry as you can use the settlement process to your favour to ensure that your issues are addressed.

Cheers.

 

[schweedy]

Sounds a bit on the dodgy side to me. I'd be holding off settlement until vacant.

Then it will be up to the managing PM to make sure the house is in the state it was in when the tenants move out (that is up to the RE/Owners discretion).

I've taken possession of what seemed ok houses, only to get them in a total state upon settlement. Not damages, but as sold, not up to rental standards etc. So a thorough clean is in order.

I have several friends who rent, and with the contant turn over over the past few years, many are getting keys for houses that obviously haven't been checked/cleaned prior, and then its a nightmare to sort out.

There are things that stand out.....NO BOND??? wtf. Now if you take them on as tenants, you can make them pay a bond (had this issue with tenants of ours, refusing to pay the bond, pm sorted that out quick smart), but thats still no guarentee they wont trash the place upon leaving.
I'd still be going for the hold out until the place is vacant, book settlement for a day or two after the tenants are out and do inspection once vacant. You can always reopen the negotiations if things aren't right, but if your getting a bargain, it may not matter a few dollars here and there, just to get it vacant and settled. Thus getting a higher rental return as well.

 

[Fourex]

I have been in your shoes in the past, phoned agent on day of settlement to book a time to collect keys only to be informed unable to collect keys due to tenants unable to move out for another couple of weeks. Our solicitor advised their solicitor settlement will be put on hold until vacant and a settlement inspection taken place after they have vacated the property. Do not know how they did it but the owner had them out and property clean and tidy within 48 hours, amazing what some people can do when you hold back payment.

I don't think I would let your tenant stay on, even if they came to the party with a higher rent, being a RE agent seems like he may know all the tricks of how to work the system and I would be thinking could be a hassle in the long term.

Cheers,

Fourex.

 

[RE rocks]

I have been in your shoes in the past, phoned agent on day of settlement to book a time to collect keys only to be informed unable to collect keys due to tenants unable to move out for another couple of weeks. Our solicitor advised their solicitor settlement will be put on hold until vacant and a settlement inspection taken place after they have vacated the property. Do not know how they did it but the owner had them out and property clean and tidy within 48 hours, amazing what some people can do when you hold back payment.

I don't think I would let your tenant stay on, even if they came to the party with a higher rent, being a RE agent seems like he may know all the tricks of how to work the system and I would be thinking could be a hassle in the long term.

Cheers,

Fourex.

You guys are simply amazing. It's so good to know that there are so many people ready to help you. My only stress was the damage to the property. I hate to say that some of the REA are so nasty. He gave me a call and started yelling that i cant do this. He has a family.. gimmie at least a 6-month lease for 370 a week. i'll pay you cash in hand... blah blah..... The way he pressurised me was unreal. i felt like i was the tenant for once. Guess after reading all these messages from some of great SS forum supporters i'll try and be strong else REA will run all over me

my wife is stressing about what will he do with the house once i tell him tomorrow that you need to vacate... do i deal with him or the owner or my solicitor???

when do i get my landlord insurance just in case he decides to rip apart all the venetian blinds....

 

[The Y-man]

my wife is stressing about what will he do with the house once i tell him tomorrow that you need to vacate... do i deal with him or the owner or my solicitor???
...

Unless the place is in the condition you viewed it in, don't settle. Check the property several days prior to setlement.

If the tenants are still there, as others have said, this violates contract conditions and you can either hold off settlement or even back out.

If the place is vacant but a mess, your solicitors will negotiate a fair restitution adjustment at settlement as long as you let them know.

Someone in my office had to delay settlement for a whole 6 months while they waited for the tenants to leave. Then they broke windows on the way out - but all ended well. Vendor paid for a thorough professional cleanout (twice actually) and repairs.

Chin up. All part of the game.

The Y-man

 

[Buddybee]

Stick with the advice that's been offered - contact your solicitor and tell them to impress on the vendor's solicitor the clause of VACANT possession. You may need to explain the details to ensure the message that your not going to settle until the property is empty as per the contract.

I'd also start looking for a PM. It may take a week or 2 to sort that out, and once arranged, depending on your contract of sale start advertising to minimise vacancy. To impress the point with the current tennant that you are not going to be messed with have the PM contact him to see if he'd like to put in an application. That way the emotion is removed from you and your wife, and the correct process for finding a tennant can commence. If the tennant contacts you, you just need to tell him that you've appointed a PM to manage the rental process, and ensure adequate checks and balances are in place (bond, rental history etc) and pass on your PM's contact number.

If you need help on selecting a PM, why not ask the wonderful folks here on SS if they can recommend a PM in Chelsea. From the number of Chelsea threads in the search results I'm sure you'll be able to find a good PM - either that or there is a number of SS's who are unhappy with their PM's.

If you are concerned about damage unfortunately there is nothing you can do until the final inspection. Just make sure you have adequate insurance on the building and contents NOW incase something does go wrong.

Cheers
Buddybee

 

[pully]

as has been said you have no problem.

the vendor does.

no vacant possession no sale.

make that clear and you will be able to move on.

no need for landlord insurance as you do not own the property, and may never.

it is concerning that you are worried about how the agent will react??

as said the property needs to be in the condition that you agreed on when you signed to buy.

plenty of property out there. this sounds too messy and time consuming.

vacant possession or no deal simple? the ball is in your court.

 

[rugrat]

I'll just repeat everyone else in the hope it sinks in:

DO NOT SETTLE!!! Unless the vendor is able to meet the terms of vacant possession, do not settle. It will be the vendor's problem to evict the tenant (taking them to tribunnal if need be), but that is not a problem you want, particularly with this tenant by the sounds of it.

Even if this tenant agreed to an increase in rent to FULL market value, I would still boot them out, they will be a headache. Don't feel sorry for them, he is a REA I am sure he can find some other LL to swindle. He has a dog, so what. Same with the kid in year 12, not your problem.

Believe it or not I am actually a very empathic person, I have worked to defend tenants rights as an advocate, so far you have not given me any real reason for this guys behaviour, or why he should not be evicted.

DO NOT SETTLE, without vacant possession.

 

[RE rocks]

I'll just repeat everyone else in the hope it sinks in:

DO NOT SETTLE!!! Unless the vendor is able to meet the terms of vacant possession, do not settle. It will be the vendor's problem to evict the tenant (taking them to tribunnal if need be), but that is not a problem you want, particularly with this tenant by the sounds of it.

Even if this tenant agreed to an increase in rent to FULL market value, I would still boot them out, they will be a headache. Don't feel sorry for them, he is a REA I am sure he can find some other LL to swindle. He has a dog, so what. Same with the kid in year 12, not your problem.

Believe it or not I am actually a very empathic person, I have worked to defend tenants rights as an advocate, so far you have not given me any real reason for this guys behaviour, or why he should not be evicted.

DO NOT SETTLE, without vacant possession.

it's sinking in really well. Not without so much support. I'll put my emotions in my back pocket and think financially.

I know some of you would call me stupid. i got recommended a solicitor by this REA. Hopefully by law she will work for me... Sunny oak convencying,....

My wife has finally agreed do not rent a REA. I am sorry if there are any REA out here. it's not directed to everyone but majority

So what should i do first thing tomm morning??? i am very scared with this agent.