Hi,
Need some help. Buying a property in QLD. The vendor is planning to remain in the property for 3-4 months, paying rent of $450/week. This figure was given verbally to me by the Real Estate.
We went unconditional, but then our bank has told us they need 1 more week. We requested a settlement extension and the Vendor's solicitor has replied with this
1. time is to remain of the essence; and
2. the seller will remain in possession of the property after settlement for a rental amount of $400 per week
3. the buyer grees to purchase the tiles at a price of $2000 payment of which is to be deducted from the first 5 weeks rent (calculated at $400 per week)
4. The seller will not be required to pay any rental bond to the buyerPoint 3. – the vendor bought some floor tiles to lay in the house but they never got around to it. They expect that we should have to buy them, but I don't even like them.
So we were meant to settle today, but could not due to the bank. My solicitor responded to the vendors request with rejection of these terms before 5pm. We did not hear back from Vendor's solicitor. What happens now? My solicitor said the vendor has 14 days to respond, otherwise we go to court.
Any help would be appreciatted.
Thanks
JasonSeller staying in the property, what about the condition of the property at the end of the rent back.
What provisions are in the contract for how the sellers will leave the property or if there is any damage to the property.
Get a bond. Draft a lease. Have an entry condition report done and an exit report done. Treat it as a normal tenancy, always.
In Qld you would want to have in place a written tenancy agreement, you would want to be taking out landlord protection insurance and so on.
If the seller stops paying the rent you would have nothing in writing about how the rent should be paid and when and to who. You'd be thrown out of court before you even sat down.
You'd want provisions about who is responsible for repairs.
Retain possession, no they are going to be a tenant residing in the property if they adhere to certain terms and conditions. What if they don't there are no provisions for terminating this agreement early.
Make it a normal tenancy. The seller will enter into a tenancy arrangement with the buyer, pay a bond and sign a lease. The amount of 4 X weekly rental will be withheld at settlement in the way of payment of a bond by the seller will be lodge as a bond with the RTA. The tenancy will be subject to the conditions of the attached lease. Provide the seller/tenant with a RTA form 17a.
Speak to the RTA they are there for landlords too, ask them about this condition in the contract.
Solicitors act on instructions from their clients.
I think it all depends on what is in the contract – this is what you agreed to. If they want to add clauses after exchange, then you have the right to reject these.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Thanks for the info Terry/Opportunity
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