non settlement

Hi… sounds like a nasty situation.

So you keep the deposit, right? But before you go ahead and sue, make sure there is some bread in the cupboard.

Or perhaps this is a chance for you to lease-option or wrap the property and come to a win-win outcome?

Solve problems and you’ll make cashflow!

Cheers,

Steve McKnight

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Remember that success comes from doing things differently.
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Looks like they’re in the market to buy another house.

Which means they’re going to have to borrow money from the bank.

When you (or your solicitor) send them a letter demanding interest and damages, politely point out to them that if they don’t pay up by the deadline, you will be forced to sue them, and if you were forced to sue them, this may adversely affect their credit rating, because the lawsuit will be on the public record.

This might encourage them to cooperate and honour their contractual obligations (whether to settle on the house or cough up the interest and damages).

Cheers
Elysium-M

There is no law in any Australian State or Territory, as far as I am aware, that requires anyone to pay a minimum amount for a deposit.

The deposit is simply a contractual detail agreed upon by the buyer and the seller. You can offer a $1 deposit, and if the seller accepts your offer, that’s what you have to pay! Of course, you still need to pay the rest of the purchase price at settlement.

Caitlyn, as the seller, you’re entitled to reject an offer if you think the deposit is too small. It’s the same principle as increasing the purchase price – simply cross it off and write in the deposit you want, then get the amendment initialled.

Cheers
Elysium-M

DIY Residential Property Settlements in WA – the book coming soon! When I can get my act together…

This is a tough one!.
Firstly as someone already said you should have got a lot more deposit on a property of that worth, tens of thousands more, if it`s unconditional they shouldn`t have any problem with it!.
I recently bought a house and instructed my solicitor to pull out of it with only a couple of weeks left, but there was a genuine reason why I had every right imo to pull out, the agent told me that the land was res b when it was in fact non urban which I did not find out until close to settlement, I thought long and hard and ended up buying the house.
Reason I mention this story is my solicitor said at the time this had NEVER happened before in his office but it was likely due to the obvious blue by the agent I would likely get all my deposit back.
This is not the case from the sounds of your deal, you should get compensated, maybe not 10% after all that is $80,000, you`ll never get that much, if thier true reason is finance they really need to pay up.
I would get my solicitor to write them a extremely threatening letter, this has an incredible affect at times especially when the party knows they are wrong and these poeple don`t have a leg to stand on.
Get your solicitor to write at the end of the letter a note that a certain amount paid to you (whatever you think is fair but don`t go nuts) will stop any legal action which will be very forcefully applied to get ultimate dollars, I would be very surprised if a cheque is not in the mail very smartly!, this way it costs you next to nothing, 1 letter, and you will salvage enough money to compensate yourself, again don`t make it too much remember the alternative will be drawn out and costly.
Good luck.

Have they agreed to that?, if not I wouldn`t waste time as they may feel they have gotten away with it and may sense that you don`t want a drawn out legal fight.
Good luck, but still, I would get my solicitor to write the letter asap and salvage whatever possible right away, also legally, surely there is a way you could stop them buying another house until the matter is settled.

On the other hand, though, the right (and it is a right) to claim interest and compensation equal to 10% of the purchase price is clearly set out in the contract. This is not a new thing, but something that’s been in standard sale contracts for years.

When the purchasers signed the contract, they agreed to the deal on that basis. And a deal is a deal, isn’t it?

Another way to look at it is that it’s the agreed contractual price for getting out of the sale.

So why should they not be made to honour their contractual obligation?

And if it’s a clear breach of the contract, how can they defend it? Ask your solicitor to seek summary judgment.

If they own a few houses, they’re not going to be foolish enough to get involved in an expensive court battle, which will not only cost a lot of money, but will also hurt their credit rating.

Cheers
Elysium-M

DIY Residential Property Settlements in WA – the book coming soon! When I can get my act together…

As the deal was unconditional, it doesn’t matter what they prove. They can show you ten reject letters from a bank, but it won’t matter. Unconditional means ‘without conditions’. Subject to them obtaining finance is a ‘condition’. They owe you the full 10%. Don’t let them out of it.

Cheers
Mel

Blackmail?, I`m no lawyer but this is not blackmail, yes you would I suppose have to be careful how you word the letter, but there is no intention for you to defraud anyone, or even get the full amount you deserve by law.[]