All Topics / Help Needed! / Can a vendor pull out of house sale contract after exchange of signed contracts ??

Viewing 15 posts - 1 through 15 (of 15 total)
  • Profile photo of kevinkkevink
    Member
    @kevink
    Join Date: 2012
    Post Count: 6
    March 31, 2012 - 10:50 am

    Hi All

    I require some general help before i go and appoint a lawyer to deal with this issue>

    I am first home buyer who put a offer of home purchase 4 days ago and it was excepted by vendor and contract of sale has been exchange by both of us via a real estate agent.

    Now the vendor has signed another contract with some other purchaser for either higher value or other benefit reason.

    Do I have any right to STOP this?

    Is the vendor allowed to pull out of a signed contract after exchange of contracts?

    I have paid the initial deposit of $1000 and rest 10% is due to be paid in 2 weeks time and settlement was supposed to be in 45 days.

    Are there any legal consequences for vendor if he doesn't want to sell his property anymore?

    Please advice, any help would be appreciated…..

    Regards,

    Kevin…………

    Profile photo of Aaron_CAaron_C
    Participant
    @aaron_c
    Join Date: 2012
    Post Count: 65
    March 31, 2012 - 12:55 pm

    Get a caveat on the property NOW to stop the sale to the other purchaser. If you prove that you have signed the contract beforehand then you have exclusive right to enforce it.

    Profile photo of sapphire101sapphire101
    Participant
    @sapphire101
    Join Date: 2006
    Post Count: 203
    March 31, 2012 - 10:44 pm

    Lawyer – first thing Monday morning or beforehand depending on your relationship. Was the 2nd contract also signed off with the same agent? the whole thing sounds nasty and hopefully the vendor and agent are in cahoots. Make sure your lawyer specializes in property. It helps.

    Ian
    Block Head

    http://www.theblockblog.com
    Free Property Investment Info, Tools & Resources for Investors with A Sense Of Humour.
    "An Irishman Walked Out Of A Bar ….. naaaa just kidding"

    Profile photo of kevinkkevink
    Member
    @kevink
    Join Date: 2012
    Post Count: 6
    April 1, 2012 - 12:22 am

    Thanks for all the suggestions……Just adding some more points here………

    Property contracts were signed by vendor for two different real estate agents and from whom I got it, had the exclusive right to sell the property………..

    The second real estate agent also had exclusive right to see the property before but he wasn;t able to sell it during that timeframe..

    What happens if vendor back dates the contract for other purchaser who has higher price for the property?

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213
    April 1, 2012 - 6:12 am

    vendor is locked in – possibly to both contracts.
    what state is it in?

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213
    April 1, 2012 - 7:16 am

    aarons idea about the caveat is a good idea too. it will speed up the resolution as they wont be able to settle

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of kevinkkevink
    Member
    @kevink
    Join Date: 2012
    Post Count: 6
    April 1, 2012 - 8:18 am

    Melbourne Victoria

    Profile photo of kevinkkevink
    Member
    @kevink
    Join Date: 2012
    Post Count: 6
    April 1, 2012 - 8:24 am

    I agree with Terryw, the owner seems to be locked……

    Either one of the purchaser has to withdraw the contract or vendor will be sued by either purchaser……

    The only way out for a vendor that I can think of is that If purchaser has signed the contraction with "subject to finanace' and his finance doesn't go through…………This is the only way out for vendor……….

    But I will get a property lawyer to look into the matter and take it from there…………

    For all those who have replied……….Thanks heap and whatever would be the outcome, i will update it here…………..

    Thanks again………..Have a great Easter……………….

    Profile photo of ananddanandd
    Participant
    @anandd
    Join Date: 2012
    Post Count: 58
    April 1, 2012 - 9:17 am

    Oh dear… another classic 'dog-fight' between the real estate agents. I feel soprry for the vendor.

    Go & see a lawyer asap and I can see them lodging a caveat on your behalf.

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213
    April 1, 2012 - 9:20 am

    its likely the vendor will have to pay two lots of commission too

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of ananddanandd
    Participant
    @anandd
    Join Date: 2012
    Post Count: 58
    April 1, 2012 - 9:23 am

    plus the legal fee (Terry you forgot to mention) :)

    Profile photo of kevinkkevink
    Member
    @kevink
    Join Date: 2012
    Post Count: 6
    April 2, 2012 - 3:00 am

    Who should appoint a property lawyer in above case?

    Real estate agent or the purchaser?  Please be aware that the property was sold through a real estate agent. Puchaser doesn't have direct link to vendor.

    Thanks

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213
    April 2, 2012 - 3:01 am

    The purchaser.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of ananddanandd
    Participant
    @anandd
    Join Date: 2012
    Post Count: 58
    April 2, 2012 - 3:05 am

    I agree with Terry and real estate agents will raise their dispute with the vendor separately perhaps a civil court case in this case.

    Profile photo of kevinkkevink
    Member
    @kevink
    Join Date: 2012
    Post Count: 6
    April 2, 2012 - 10:44 am

    Thank you all for your prompt responses….

    Will update you once I have the outcome.

    Cheers

Viewing 15 posts - 1 through 15 (of 15 total)

You must be logged in to reply to this topic. If you don't have an account, you can register here.