hi, like many other case, my vendor delayed the settlement.
so the story was, i purchase this property, paid the 10% deposit, and request to occupy.
the vendor asked me to sign a agreement for licence to occupy. so i did.
i was very upset that my lawyer did not explain to me that during the time oc occupation, other than the rent that incured from the licence, i am also entitled to pay all the land tax, water levi and strata. because i always thought these are fees that i should pay after the settlement date.secondly, on the original settlement date (42 days), i requested so many times to my lawyer to request for payment instruction. the vendor failed to do so and delayed two weeks. i told my lawyer is not my fault that he is delayed but still i was charged with the two weeks rental.
i was very upset for this additional cost the vendor has charged me. can anyone tell me what's my right? (i gave up on my useless lawyer).
so if the vendor request the payment at the end of the year, i have to pay strata, water levi, council AND the rent until end of the year? where is the logic?
All the strata fees, water levy, council etc will be adjusted in the settlement statement. This means that on the date of settlement you will pay those fees up to the date of settlement. The vendor won't be chasing you at the end of the year for payment.
It is a bit harsh that your solicitor didn't explain this to you. However, it is likely that if you didn't agree to pay the strata etc, then the vendor wouldn't have allowed you a licence to occupy. So you could try to sue your solicitor for the $500 or so that you have had to pay in those fees but I can tell you that you will have buckleys chance of success. You would have to prove that had you known that you would be paying those fees you wouldn't have agreed to the licence to occupy.
As to the extra two weeks rental, I suggest that you contact the vendor's solicitor and ask that you reach some sort of agreement because the delay is the vendor's fault. The vendor doesn't have to agree, but you can always ask.
Cheers
K
yup, tried asked the vendor lawyer to reduce the two weeks rental. they rejected my request.
then, stupidly, my lawyer said to me that i can withdraw the contract if i want to and get your 10% deposit back, but of course assuming i wont withdraw.
then i said to him, yes, i like to withdraw, can i know the consequences and my lawyer was like, err… actually you cannot withdraw because there is a 2 weeks grace period after the 42 days settlement.
i was so furious about this. what is this grace period? anything else i should know before hand?
then i asked him why cant i said something in the agreement, if vendor happened to be late, i wont be subjected for the rental. and he said i could have said that in the begining and changes my current situation. so i asked him why didnt he do that for me. and he was like, "nobody expect this to happen". then i asked him again, "WHY DIDNT YOU DO THAT FOR ME?" he was like… "you have to get him to agree also". so i stress again, "WHY DIDNT YOU DO THAT FOR ME, to protect me for this situation?" he was like, "because i didnt ask."
so, i am very dissapointed for my lawyer's service. he failed to protect my right as a buyer. i felt so legally bullied by this vendor.
i reckon all buyers should ask your lawyer to write a clause in whatever agreement to protect your right.my lawyer just called me and said the vendor again cannot complete the settlement tomorrow, which is the end of this "grace period".
i am very pissed off that i was told that i have to continue paying this "rental" for another 2 weeks.
what is my right?
What state are you in? In some states it is written into the contract that the purchaser can charge default interest if the vendor is late settling. In other states the purchaser has no right.
In your solicitor's defence, a lawyer cannot possibly be expected to foresee every single little possibility and have an arrangement for everything out of the ordinary that can occur. There are literally thousands of things that can veer off the course of normal in a conveyance. For a start, your legal fees would be astronomical because the lawyer would take days to write clauses for every possiblity. Secondly, no vendor in their right mind would sign a contract with thousands of special conditions to cover everything that might go wrong.
There is not really anything you can do (except if the contract stipulates that you can get default interest). Yes it is frustrating but that's the vicissitudes of buying and selling property.
I am selling a property that was due to settle on Tuesday. The purchaser's bank wasn't ready and so settlement is now next Monday. I didn't bother charging default interest because banks are slow at the moment. However, today I found out that in the last few days fixed interest rates have dropped and my break costs have gone up by $4000. Am I happy about it? No. But that is just the world of property investing.
Cheers
K
yea, i realise there is really nothing i can do. if only my lawyer stated that i dont have to pay after the very initial settlement date.
what made me so mad is actually the unreasonable vendor. disagree with everything i says and i have to do everything he asked. for example, the day i moved in, i was not given the letter box key and window key. so i was left without letter and window open for 3 weeks. it's tiny things… so i keep quite. then this buying contract involve of buying all his furnitures. my stupidity is, i didnt list down the things i bought. (i took pictures but, with the witness of agent). the owner have a few item listed not selling. 1st day the list has 3 items. 2nd day, the list have 7 items. and then just walk in and take whatever. although all tiny things taken, i am very very upset about it. all because i did not list down things i bought.
then this cost of furnitures, said in the contract to be paid on settlement. the vendor has been calling me so many times to pay immediately. because i was not happy, i refused to pay him immediately and stick to the contract. then, he uses this delaying settlement date method to get the extra cost from me. how evil is that?
Hello 93561
Sounds very frustrating!!!. Which state are you in?
I saw in your 1st post that you listed land tax. Why would you need to pay land tax?.
As you intend to live in the house you are not liable for land tax.If this was an investment property for the vendor, the land tax is his problem …….. unless you agreed to pay it in the sales contract.
Do not pay for the furniture until settlement. If the sale falls through for any reason you will be stuck with the furniture anyway.
Next time the vendor rings tell them sweetly that you are very happy to pay for the furniture immediately……as part of the settlement.Good luck
ElkaWhat state are you in?
err.. i dont know what state i am in.
is it writen in contract?
or… can you give me a few option and i tell you what state i am?
at the moment, i paid the 10% deposit. paying "licence fee" to occupy, paying strata, council rate, and water levi.
still paying all the above fee even though the original settlement date has past two weeks ago. and will be continue paying the above fee for another two weeks. not sure about future payment. but… i felt very unfair that my lawyer did not protect my right.this licence to occupy fee, if convert to %, is about 5% of the total cost.
so i am like paying interest for late payment. i am very very upset about this.how do i know what state i am in?
elkam wrote:I saw in your 1st post that you listed land tax. Why would you need to pay land tax?.
As you intend to live in the house you are not liable for land tax.
sorry, should be council rate.
elkam wrote:Next time the vendor rings tell them sweetly that you are very happy to pay for the furniture immediately……as part of the settlement.my property agent pay the furniture on my behalf. i will pay him back at settlement. wish both of us luck.
oh… when you said state, do you mean NSW state?
yup, i am from sydney
93561 wrote:wish both of us luck.Given that you don't know what state you are in, I think that you are going to need all the luck you can get.
K
i am sorry, i thought "state" means something else
:pthis property is from NSW state
too paranoide with the meaning of every single word now.
"adjustment date", "direct damage", "licence to ocupy", etcplease give me advise
so today, the 8th week after 10% deposit, my lawyer told me that the vendor has problem release title from bank.
so my lawyer advise me to issue a notice of complete. so i got another two weeks to go. again, i am liable for another two weeks license fee to occupy.
i am in such a difficult situation. should i start looking for a property to move into? or should i keep paying the license fee until dont know when will be the actual settlement date.
this is a simple case but end up so complicated. i can give a bill to the vendor for relocation, but if they disagree, i have to go tribunal. sigh…. what's my best plan?
can anyone tell me, what will happen after the "notice to complete"?
can i still purchase the property after the notice to complete?
notice to complete means you are advising the other party that you are terminating the contract. If you terminate the contract it is all over and you will need to renegotiate with the vendor if you want to purchase.
And don't forget if you are paying a fee to occupy before settlement that means your loan hasn't been drawn down so you are saving interest at the same time. So overall you may be little worse off from a money point of view.
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
it has been a while, so let me just summarise what happened.
i found this unit, very nice appartment unit, paid 10%, then sign an occupation agreement to move in.
after 42 days, vendor failed to get the bank release title, so gave him another 14 days plus me pay him rental another 14 days.
then vendor still fail to release title, so i gave him a notice to complete, another 14 days plus rental.
then vendor again, fail to release title and request for another 14 days, but in return, waive my rental from the original settlement date. so i gave him another 14 days.
on final day 11, vendor gave me a notice that i must settle the next day or else i am consider late payment. i was like… what? i need three days for the bank to get money done. he was like… nope, there will be rental fee if i cannot settle the next day.
i gave him extra 42 days and he cant even spare me 3 days. gosh!!! and my solicitor cant even help me on that. i must say my vendor has a very good solicitor. i must use him next time.
Hello 93561
Have I understood you correctly.
During the approximately 84 days you have been able to occupy the unit ( 42 days to settlement and 3 x 14 days extensions ) you will have been able to live rent free and loan interest free for 39 days ( thanks to your good negotiation of the terms of the last extension naturally ) and you're not happy ?
Actually your vendor sounds neither nice nor fair but you will be rid of him soon.
Let us know when you've finally settled.
Good luck
ElkaWhat was the reason why the bank could not release the title?
it was some up and downs…
coz after the 42 days, i thought, YES, no more rent… now just wait for the settlement.
then 14 days later, WHAT? have to pay rent for the past two weeks?
then… another 14 days…. i was like… is this for real? can i be so bullied?
comes the news that i dont have to pay rent, but have to wait another 14 days. i was like… FINALLY!!!! NO MORE RENT…
then… ask me to pay tomorrow, i request for THREE days only… NOPE was the reply. and i have to pay rent…28 days ago he made me pay $30 for six cash cheques and another $60 to return them to the bank.
why is he setting the terms all the time and i just have to do what he says?
i thought the contract suppose to protect both parties.
i thought both parties decide when is the actual settlement date.
i thought we can negotiate.
but… throughout the 84 days…. is all him saying the terms…anyway…. i think everyone should add an additional clause in the so call "standard" contract to protect the buyer.
if vendor happened to be late, for whatever reasons, vendor pays rent.
and if vendor terminate contract for whatever reason, vendor pays seller 10%
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