Hi everyone, (I HAVE POSTED THIS IN LEGAL AND ALSO HELP NEEDED AS I DIDN'T SEE THE LEGAL SECTION FIRST – OOPS)
i would love to know if anyone has been in this situation or can offer advice.
We agreed to buy a property back in December 2007 (YES YOU READ IT RIGHT). Settlement still hasn't gone through as there was a hold up with a bit of the land being subdivided and after many letters from my conveyancer over 2 and a half YEARS we decided a couple of weeks ago to pull out of the deal.
We have a 'licence agreement' with the owners that if they didn't settle within 30 days (back in 2007) that we can utilise the property. So we did and have had it rented since then.
I have just had a call from the propety manager informing me that the owners solicitors sent a letter to them to 'withhold all rent owed to us'!!!!! i am waiting for my conveyancer to call me today (but hasn't even though i have left messages and sent urgent emails last night).
The conveyancer told me a few weeks ago that we could back out of the deal and get our 10% deposit back as either party could do this if settlement didn't take place within 18mths. Can anyone shed some light on what our rights are to the rent we have been getting over the last few years, can we keep it even though we are backing out of the deal?
They informed the conveyancer ONE DAY after we faxed them a letter that we didn't want to proceed and SUDDENLY they are ready to settle. but we don't want to anymore. Can they force us to settle because we didn't give sufficient notice or can they keep our deposit?
thanks in advance, i am very stressed about this situation.
For starters ditch the conveyancers. You have a legal problem and they can only work on the transfer of land. You would be able to back out if there is a sunset clause in the original contract – which there probably is. Is there anything in the original contract about the rental income? Were you paying rent? and did the licence agreement allow you to sub-let the premises?
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Sounds like something horrible to be experiencing. So much uncertainty and stress!
Which state are you from? Can't say much with regard to your rights as the relationship is contractual (obviously). So you need to have a look at the contract to see what each party's respective rights are in relation to the delay of settlement. What I mention below is based on the the Victorian standard contract.
The vendors may be in default depending on what was provided in the contract. Your right to rescind (ability to exit the contract) is dependent on you giving them a written notice to that effect (in accordance with conditions of contract). Only if they do not remedy their default within 14 days are you legally allowed to rescind and walk away from the contract. So make sure the notice is written and according to the Contract.
You may then be able to claim damages. But if they are now able to proceed, i don't know if you can drop the contract now.
Is it an empty lot? I presume not. If the property is a lot on an undivided plan, then settlement can be delayed until 14 days after they give you notice of registration of the plan.
Is the licence agreement express and in writing? If so is it contained in a separate document from the Contract itself? Your rights are also governed under this agreement.
Was it an options agreement? I.e. an option to purchase property in the future?
IN SUMMARY I think you should seriously think about getting a solicitor review your rights. Further costs, but it'd be good to know exactly where you stand.
All the best with it. I'd like to know how this matter turns out, so keep posting. Feel for ya.
Regards
P.s. what did they say to you originally about expected completion/settlement date (before you signing contract)? You may have a consumer action brewing if you've suffered any loss…
Any way, go see a solicitor!
(This is not legal advice. I'm not a lawyer and not purporting to be one, and you should not rely on any of what is said.)
thanks so much for posting all of that info GFC2007. I have posted my outcome in the help needed forum (i double posted). If you click on my name and click see all posts you should be able to find the link for my outcome. (it was good)
. A very interesting situation to be in indeed!cheers,
Checkmate. Good thinking with the special conditions!
Goes to show how important it is for buyers (and/or their representative) to read and negotiate the terms of the contract before signing.
So what's happening with the returned deposit? looking for other IP?
. A very interesting situation to be in indeed!You must be logged in to reply to this topic. If you don't have an account, you can register here.
