Kay, thank’s for the contact – I’m talking to the Jenmens now – and they’re very helpful.
What I feel really angry about is that Central Equity lied to me about taking back the flat (at no cost to me) if I could not complete. (and obviously I cannot complete as the valuation came in so much lower and at such short notice I cannot find the additional funds) – also the b*****ds at CE told me 3 weeks ago that all valuations were coming in at the purchase price or above!
I have also heard that many people are in the same situation and some are just having to walk away and loose their deposit (CE must be raking it in)
Some valuations are coming in at over 40% less!!
I would love to know if anyone has any ideas what I can do – as I’m about one month away from loosing my deposit (20 years saving!!)
Thanks for all your help [confused2]
jhighlo,
Neil Jenman’s a helpful man, and a nice one to boot, I think. I am not sure what the mechanisms/process is that they’ll be using to assist you, but as you probably know, the wheels of the legal system can be slooow. I would suggest keeping in touch with Jenman, and asking for some kind of time indication as to how long it might take.
I know that some legal loopholes were removed for people sueing on OTP’s, but you may be in with a case, depending on your circumstances. The Trade Practices Act does prohibit misleading and deceptive conduct, and would override any other policy… but it’s a matter of proving that the conduct was misleading etc… And, as others have discussed on here, if the valuer can demonstrate that the valuation given was based upon appropriate measures… well.. they may just argue the market has changed- and for OTP’s in inner-city areas, no doubt it has.
Meantime, give your solicitor a call and get his or her opinion also- one can’t have too many opinions on these things, I think.
kay henry
Thanks again,
Anyway I contact my soliciter about my situation. eg CE lying to me that I could pull out of the sale, and the “possible” overvaluation, and all the other misinformation and this was the response.
“1. Any representation made to you by an agent of Central Equity as to the value of the property at the time you signed the Contract of Sale (or indeed after you have signed the Contract of Sale) does not unfortunately give you any action against the agent for the subsequent decrease in the value of the property. In this regard, please refer to Special Condition 1.8 of the Contract of Sale which basically states that you cannot rely on ‘any promise, representation, warranty or undertaking’ given by any other (ie. the selling agent) prior to the signing of the Contract.”
.. so basically CE can say what they like to sell you the flat, then when they’re dangling the 100+ page contract under your nose and saying sign it, sign it you’re expected to read all these clauses
(which would have taken me a month and probably then I would not have understood it all). This surely can’t be legal.Then I wondered why my soliciter was not being helpful. Then it dawned on me that the were recommended by Central Equity!
I guess its just hard to see you life saving go down the drain from this scam – and there is nothing you can do about it!
Found this interesting article about property scams to depress me even more: (CE get a few mentions) http://www.abc.net.au/4corners/content/2003/20030421_tall_stories/int_ryder.htm
Then the second part of the soliciters email made sense (when I mentioned I was having trouble getting finance – due to the drop in valuation)
“The property market in Melbourne has certainly flattened and it could be that the lenders you have approached are being over cautious in regards to their valuation. Our Principal Solicitor, ********, suggests that you try and get another valuation done by a different valuer, or alternatively consider a less conservative lender. We can provide the contact details of alternative mortgage brokers if you so require.”
Encouraging me to go with a company that will comply with the overvaluations Ahhhhh!
It’s like the whole of Melbourne is in this conspiracy!
Is this all Legal?
Originally posted by jhighlo2001:“The property market in Melbourne has certainly flattened and it could be that the lenders you have approached are being over cautious in regards to their valuation. Our Principal Solicitor, ********, suggests that you try and get another valuation done by a different valuer, or alternatively consider a less conservative lender. We can provide the contact details of alternative mortgage brokers if you so require.”
Encouraging me to go with a company that will comply with the overvaluations Ahhhhh!
Is this all Legal?
jhighlo2001,
I think you might like to re-read this proposal/suggestion, as to me, it implies nothing untoward; that is, is does NOT suggest you approach a company that will give “overvaluations” at all!!! Conservative and overvalued have two very different meanings, and what is being suggested here is that you “shop around” as some lenders are more stringent as opposed to others who are less so. The propostion made herein is not in the slightest “illegal” and appears to offer professional, ethical and sound advice.
Jo
P.S. Sorry I thought I’d better edit my comment, as for the rest of your circumstances, yes I agree, you’ve had a rough trott and there has been some shonky business in operation, but in reference to the abovementioned paragraph, I can’t read anything sinister in it. Acey is right, as nasty as it is, it is all a learning experience; hopefully next time you’ll be better equipped. All the best.
jhighlo2001,
In this instance you got burnt – and learnt a lot.
Unfortunately sometimes you just have to put these things down as a learning experience & move forward.
Many people do fall for these scams – very few ever visit a property forum. You have at least, begun educating yourself & that will greatly improve your ability to succeed as an investor in the future.
Terry Ryder has some great books out as well that you should look up at your local library – and maybe it would be worth your while contacting him direct. The current affairs programmes may also be an avenue for you – not so much for compensation, but to ensure that other people don’t follow your footsteps unknowingly.
At the end of the day it’s not all of Melbourne against you, it’s simply a few people at a few companies who engage in unethical behaviour. Now you’ve learn how to recognise them & will be more cautious in your due diligence in future.
If you want to contact a very good valuer in Melbourne directly & get valuation info ‘from the horse’s mouth’ pop over to Somersoft & look up RightValue. He’s a very experienced valuer in Melbourne & via emails or phone can probably give you an idea about whether you have a conservative valuer or if it’s the solicitor who is stringing you along.
Cheers,
Aceyducey
In theory, there is no difference between theory and practice. But, in practice, there is.– Jan L.A. van de Snepscheut
jhighlo,
Whilst the contract may be long- 100 pages or whatever, that’s what your solicitor is paid to do- check it out thoroughly and find any problems in it. If you were unduly influenced to not get your own legal advice, then you may have a case against them.
Once a contract is signed (and given that you had independent legal advice), an out could be that the contract was “unconscionable” but you would have to prove considerable disadvantage personally (such as illiteracy, mental health issues or some such thing), or that the contract was grossly unfair.
Still, there are some people who have been able to get out of these contracts. With the assistance of Jenman and your solicitor, you may even be able to negotiate yourself an out- although I reckon that would be via private mediation or something- and mediatoins are less successful when there’s a power imbalance). But with a mediation, the results are kept private, whereas if the company allowed you an out through the courts, in some sort of civil claim, it would set a public precedent- something which I think the company would be reluctant to have occur.
kay henry
I am another taken in by the great Aussie criminal building crowd. I am completing in the next week and have learnt 2 things as a result.
1. Its best not to look at the site http://www.domain.com.au
2. In future I will be staying well away from anything Australian.
I appreciate like the others that we have only ourselves to blame and can only hope that the renatl market holds and that the units can be rented.
At least I’ve saved something, that is my visa application as I shall not now be even be thinking of applying to live in such a country that works in such a way.
Hello
I work at Channel 9, pm me if you like and I’ll put you in touch with A Current Affair (I work in news… separate office altogether)
Cheers
rHi Redweb944
Perhaps before you criticise Australia and “anything Australian” as you say, you might have the courtesy to write into your Member Profile exactly where you live. It appears from your post that you don’t have the wonderful good fortune to have permission to live permanently in this fantastic country that I for one, hold very near and dear. Hope you find happiness somewhere else.
cheers
thecrestthecrest | Tony Neale - Statewide Motel Brokers
http://www.statewidemotelbrokers.com.au
Email Me | Phone Meselling motels in NSW
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