We just purchased a property and in our contract we asked for vacant possesion. We have settled on this property and the tenants are still in the property (won’t leave) and are not willing to pay rent. We want to renovate this property in January! What can we do and what rights do we have? Has anyone else had this happened to them?
Thanks
ChrisChris,
You said you put in the vacant possesion being one of the conditions prior to the settlement. How come it’s still been settled with the tenants in it. I think initialy the onus should be to the vendor. what did you solicitor have to say?
cheers.
We are waiting for our solicitors to re-open after Christmas so we can speak with them.
Thankschris, this has never happenned to me, if i want vacant possession i get it.
it is not that hard..ie. don’t settle until it is.
horse may have bolted for you, but the question is still why?
cheers
brahms
Purveyor of Fine Finances
aka Mortgage Broker BrisbaneWhy didn’t you do a presettlement inspection ? You could have delayed settlement until the tenants were out.
We learn through our biggest mistakes. Lets look at how to fix it.
You’ll need to firstly give the tenant written notice to vacate and if this is not successful take legal action in the Magistrates Court via a minor debt claim. This process takes time though.
Good luckAJBS
Chris
i am with learn& share the responsibility lies with the Vendor to comply with the Terms of the Contract.
You should consider taking action against the Vendor under Specific Performance and see whether this gets him up and running.
Having settled it is of course harder and more costly to enforce and as Alison mentions you should have organised a pre-settlement inspection.
Which State are you talking about.?
Richard Taylor
Residential & Commercial Finance Broker
Ph: 07 3720 1888
[email protected]Richard Taylor | Australia's leading private lender
The property is located in NSW.
[evil4] Know any knuckle-dragging-club-weilding goons looking for some fun??[satan]
One of my friends neighbour bought and spread sugar all over the yard of the person they didn’t like, with interesting results, hehehe. NOT that I am advocating this sort of thing.
Hey, if the tennants are refusing to pay the rent, does that make them squatters?
Cheers
C@34Our greatest weakness lies in giving up. The most certain way to succeed is to always try something one more time.
– Thomas EdisonDon’t let reality be the benchmark for your Dreams
Chris,
I agree with all of the above, a pre-settlement inspection should have been done and the real estate agent should have advised that the tenants haven’t vacated.
What was your solicitor doing…they should have picked this up.
You will now have to go through the process of evicting them through the residential tenancy tribunal.
Kind regards,
Smart CookieSomeone lied to you, you didn’t get what you paid for, this is your solicitor’s problem to fix and compensate you for.
cheers
thecrestthecrest | Tony Neale - Statewide Motel Brokers
http://www.statewidemotelbrokers.com.au
Email Me | Phone Meselling motels in NSW
My experience with that sort of thing is that ultimately, as the investor, you bear all responsibility for your actions. At the end of the day it’s the Investors signature on the documents, they bear all risk and responsibility and are therefore entitled to all reward if any.
Trying to chase down and hold liable your own solicitors, who are past masters at reducing their liabilities down to nothing would be an interesting yet futile exercise….who are you going to use to sue your own solicitor ?? My business philosophy has always been to avoid the tribunal and courts at all costs….it’s been a low stress and low cost strategy that has served me well so far.
My opinion on the matter is listen to your paid advisers, but remember that they are simply advisers, you as the Investor have the ultimate authority and therefore must accept the consequences. Yes, you’ve been lied to, and yes, you shouldn’t of settled until the Vendor delivered vacant possession to you.
This is where the younger investors just starting out are so very much exposed….how does one know the paid advice you are receiving and supposed acting on is appropriate.
I suppose places like this forum do have a purpose.
Did you solicitor ring just before settlement was scheduled and ask if it is right to settle? If so this in essence is them making sure that you are satisfied that the conditions have been met to your satisfaction.
Having said that what’s done is done – now you need to move on and get the REA who is managing the property to start the eviction process so that you can undertake the planned work. Sure this will delay your plans but at the end of the day you will still achieve what you want – albeit with some headaches along the way this time.
Remember maintain the goal and big picture focus and when you look back in 10 years time – this should seem fairly insignificant in the grand scheme of things.
Derek
[email protected]
http://www.pis.theinvestorsclub.com.au
0409 882 958I just don’t agree with you Dazzling, and any others who suggest passing over on this one. If I pay a solicitor to do a job, I expect it to be done. If I then have to mop up after him because he hasn’t done what he said he was charging me for, then I expect some refund.
I would be advising the solicitor in writing of the problem, giving the solicitor the opportunity to fix it, in order for the solicitor to mitigate my losses, (rent, legwork, phone attendance on the solicitor, letters, postage etc) and if nothing was done, i would go ahead and employ an expert to do it, and demand the costs from the solicitor. If the response was still poor, I would lodge a complaint through the law society. Why does anyone think solicitors are untouchable ? A number of them are de-frocked every year.
So we don’t have to put up with shoddy work from them, or the plumber. [thumbsdownanim
cheers
thecrestthecrest | Tony Neale - Statewide Motel Brokers
http://www.statewidemotelbrokers.com.au
Email Me | Phone Meselling motels in NSW
Hey
It’s sound like you might have yourself in a bit of a pickle. I think you need to look for an easy low stress solution!
I would simply organise a meeting with the tenants and negotiated with them. Courts and tribunals cost money and time. Offer them $500 or $1000 for vacant possession in two weeks, you can possibly guantee them their full bond back and allow them to leave house in as is condition – you are doing a reno so it probably make no difference to you if it’s a bit messy.
You might not like giving them “Free Money” but may be what is neccessary for you to come out on top, it will end up saving you money.
They are probably are pissed about the house being sold and probably not on good speaking terms with the property manager due to unpaid rent etc so make sure you do all negotiating yourself personally
The only other choice is to use the legal system and wait but remember each week they are there you are losing rent and your reno gets pushed back
The decision is yours – have fun and remember to enjoy yourself, don’t let this upset you, things could be worse.
Mick
It does not matter what the issue is.
All legal instructions should be in writing and signed off by all concerned parties.
Solicitors are human too and thus make mistakes.
Don’t forget that both sides get representation not just those that have done the right thing.If you have a document signed by all concerned parties requesting vacant possession by a reasonable date than there should be no problem.
Make your solicitor earn their money.
If nothing happens seek a second opinion from their closest competitor.
Believe me this works a treat and never fails to get action.An ounce of prevention is worth a tonne of cure.
Get your solicitors advice before any major financial decisions.Email [email protected].
Fax new number coming
Mobile 0425201055.
For all your CLEANING and GARDENING work.
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