Excuse the lack of forum ettiquette and all but I'd lke some quick advice.
I'm about to settle on a property in Brisbane on the 17th Mar. I have just discovered next door but one has been sold (still conditional however) for the same price. This property has an extra bedroom, a pool and is a much nicer house all round. The down side is that's it's on a busy rd and I can see it knocking the price down a little, but not so it becomes the same as a house about 80 metres away that is substantially smaller.
To put it bluntly, and I will speak to our solicitor on Monday, I want to pay less for "our" house or maybe break the contract and attempt to purchase the other house.
Does anyone have any advice? I hate to be a bastard to those selling (I noticed today that they have already moved out and in to their new pad) but I don't want to feel as though I've been shafted.
I appreciate if we pull out we'll loose our deposit more than likely, but will it turn into a lengthy legal battle?
Cheers in advance
Oz
I think that if the deposit is enough to cover their reasonable costs – ie at least $5 or $10K, they'll probably just take your deposit and put the property back on the market.
If you got away with a tiny deposit though, eg $500, and they get wind that you're only pulling out because you're not happy with the deal that you've made (rather than due to a sudden job loss or some other compelling circumstances), they may decide to sue. It's really hard to tell – it's probably not worth their while to sue, but if they're pissed off enough, they may decide to sue just to make a point.
The vendors can probably sue for specific performance ie you are stuck with it unless there is a major defect eg you have been declared insane. I doubt that the vendor will be too interested in anything less than complete restitution (I know I wouldn't be too happy, especially if I had banked on the sale for my new place)
Oz
Personally you would be a fool to bluff a vendor and threaten not to settle.
As has been mentioned you will loose your deposit and run the risk of being sued for specific performance.
The Vendor has the right to resell the property and you are then liable for the difference in purchase prices.
I have had a couple of purchasers over the years try the same with us and each time we have won as Courts dont look favourably on purchasers who change their minds and do not settle. You are also liable for the Sellers legal costs.
Richard Taylor | Australia's leading private lender
Could I also suggest that if you like the block next door so much, buy it as well (if you can afford both) and develop/rent/sell the first. You never know what you may be able to do with a double block.
Good idea, but it's not right next door, SNM. It's "next door but one" and 80m away. Good suggestion though. Perhaps Ozduke can buy all THREE
Forget about the price on the other property … maybe the vendor is desperate for a very quick sale and has put a low price on it for that reason. If you just go ahead and buy the house you've got a contract on, I'm sure that you'll make money on it down the track. What other people are asking for their properties hasn't really got a lot to do with your transaction. I can't imagine that your bank wouldn't have valued it up to what you have paid if it wasn't worth that amount.
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