Vendor Renigs On Contract Conditions

Viewing 8 posts - 1 through 8 (of 8 total)

dynamicduo
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@dynamicduo
Join Date: 2002
Post Count: 21
July 24, 2003 - 11:31 am
We recently submitted an offer to purchase which vendor agreed to 3 wks ago..
60 days settlement
$500 deposit
14 days to secure finance from exchange
Our access to clean up between exchange & settle
Agents access to show property to prospective tenants
Vendors have now advised that they will only accept 10% deposit, unless property will be remarketed at a higher price.
If wish to enter premises we must formally request permission in writing and produce proof of public liability insurance over property for $10m.
They refused access for agents until settlement and will now only agree to a 28 day settlement.
Vendor is department of housing and have reniged on all conditions.
The agent has unbelievably offered to fund the balance of the deposit as he is so disappointed about us getting the run around.
The same home has been issued Contract of Sale 3 previous times and fallen through each time due to problems with vendor.
Our question:To pursue this +ve cashflow property (that we have already spend hours on) or flag it??
Brett & Tiff
Elysium-M
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@elysium-m
Join Date: 2003
Post Count: 259
July 24, 2003 - 11:57 am
Duo,
This sounds like a great opportunity to get some free money!
If the Vendor reneges on their contractual obligations, they’ve breached the contract. This could make them liable to pay you damages. And if they sell the property for a higher price while it’s still under contract, you could sue them to get the profit you would have made if you sold the property at that price.
However, whether or not you’re in the box seat or stuffed depends on the exact wording of your contract. I strongly suggest that you march straight into a solicitor’s office to get some preliminary advice on where you stand.
Also, I wouldn’t wait too long before you do something about, it, because you could end up losing your rights.
The bottom line is – don’t let them get away with it! All the best!
Cheers
M
Note: this is not intended to constitute legal advice – you really should go see a lawyer.
westan
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@westan
Join Date: 2002
Post Count: 1,950
July 24, 2003 - 12:32 pm
hi dynamic Duo
i’m not sure whether you had that agreement on the contract, or just verbal, if verbal not in writing you may not be able to do much (i’m not a lawyer).
it is standard practice for min. of housing in Vic, not to allow access to properties before settlement as they don’t have any insurance (which raises another point get insurance). these gov’t departments are often very unflexable, not much you can do. But if you got the property at the right price cop it on the chin and be all set when you take possession, in the big scheme of things you wont be to far behind.
regards westan
Elysium-M
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@elysium-m
Join Date: 2003
Post Count: 259
July 24, 2003 - 5:06 pm
Westan is right – don’t just give up when you’re so close!
dynamicduo
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@dynamicduo
Join Date: 2002
Post Count: 21
July 25, 2003 - 8:57 am
Elysiam & Westan,
thank you for your replies.I don’t think I was clear that we had not yet exchanged but are trying.The vendor agreed to all the conditions at the time of our written offer and now that we are trying to exchange has reneged on all.
3 weeks has lapsed since initial offer due to slow turn arounds with snail mail and the servant in charge is apparently on a power trip.
We went with our instincts and flagged the deal choosing to spend our valuable time on other opportunities,with the lesson that we will encourage vendors of future deals to sign an acceptance of offer & we will be seeking further legal advice on this matter.
Brett[]
Elysium-M
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@elysium-m
Join Date: 2003
Post Count: 259
July 25, 2003 - 9:13 am
Oh well – it’s all a learning experience.
Feel free to ask more questions!
Neal
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@neal
Join Date: 2002
Post Count: 8
July 28, 2003 - 4:26 am
Hey Dynamic Duo
Scary…….. The agent called me about that house after it fell thru for you. Too much similarity Dept Housing etc for it not to be the same house. The agent is great and sounded as upset about it as you do. Just about to offer when discovered it sold over the weekend.
Do you guys do alot of purchasing with $500 down? Would love to chat with you about how you do things if you amenable to it? My partner and I have just started – in the process of completing the purchase of our first property in that town.
BTW agent said the Dept Housing not normally like that, for some reason the public servant must have had a bad day and got a “bee in his bonnet” about something??? Bad luck for both of us.
Neal
dynamicduo
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@dynamicduo
Join Date: 2002
Post Count: 21
July 29, 2003 - 1:17 am
Gday Neal
We have recently exchanged on 4 other properties-all of which were agreeable to the identical terms & conditions mentioned in our original post including $500 down.I would not at all be surprised if the property in question is the same one,after all it is only a small island we inhabit.You are welcome to contact us at [email protected]
Brett