Good Morning all,
I woke on Friday morning all excited that our 1st IP was going to settle today.
Pre-settlement inspection was booked for 11 am and settlement 2 pm that afternoon.
I arrived for the inspection to find a the property still tenanted even though it was to be vacant possession, alarm bells started ringing! The agent and I walked through the front door to find what appeared to be a party house with empty beer bottles everywhere. Bowls on the coffee table with tobacco mixed with this green stuff that resembled finely chopped parsley (had never seen this before).
The stove had about an inch of food and grease on the top of it and the kitchen had dirty plates rotten food and fly's everywhere. The fly screens on the doors and windows were broken and the carpets were stained.The 3 bedroom walls had marks on them and all of this had occurred since i inspected and made an offer 6 weeks ago.
Could it get any worse? Well there wasn't any real damage and a good exit clean could probably take care of most of the issues. The fly screens are an easy fix and hopefully the marks on the wall and the carpets would clean out.
No biggy, We go to the vendor with the issues only to find that he is not going to get the unit cleaned or fix any of the stains, screens etc.
He is not even ready to settle due to bank documents not arriving on time.
What should we do next?
Hi Mick
Sorry to hear – it must have been very frustrating.
I'm not sure on the legalities, a legal eagle like Terry W will be able to correct me – but I'd assume your solicitor would issue a notice to complete which gives them a certain amount of time to complete settlement. If they don't complete on time, there should be some penalty interest payable to you.
Also, the property should be in the same condition as when you first agreed to the purchase. Therefore, it sounds like some cleaning up is in order from them.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
That sounds like my house when I was 18!
Obviously the tenants were not informed that the pre-settlement inspection was happening on the day. Sounds like the vendor isn't taking the sale seriously.
Thanks Jamie,
It is very frustrating, our solicitor has advised that we are going to hold some monies to cover costs however I am not sure of the legalities?
I would be absolutely happy if the property was as inspected at time of purchase.
Cheers Mick
My house also Rick,
I don't think the tenants would know what day it is!
You sound very calm I’d be livid!
Can you get some expensive quotes for cleaning/repairs/re-decorating etc then simply do the work yourself when you eventually settle?Makes you wonder how people can live in their own filth.
Gazza,
Livid is an understatement but I keep reminding myself that its business and if I get a good outcome and am not out of pocket too much than it will be OK.
Joe, what scares me is they are actually cooking and eating amongst the filth.
If they pass away from food poisoning they cease to be your problem
Problem is Scott these ferals never get sick. It’s like there bodies have gotten immune to the filth.
Please keep us posted., I'd be interested to know what their solicitor says on Monday.
I wonder if they've given the tenants notice? That would be my worry.
good luck. Worse I've had is the new dishwasher swapped for a cheap one. I had the brochure photos so no dispute. They dumped the new one on the back step one hour before exchange.
Will do Catalyst,
Cant wait to see what today brings?
Mick
You shouldn't settle until you get vacant possesion as you will inherit any tenant problems.
Cleaning can be a problem. Do you have any special conditions about this? I had a client who sold and refused to clean and left stuff everywhere – a wardrobe full of clothes. She refused to remove them. I told her it wasn't nice to leave the house like that. In the end the new owners wore it as they wanted to move in and it could have dragged onlong for a long time.
I would suggest the old holding back $500 trick and see what they say. Some people just want their money so will agree. If they promise to come back and clean it later after settlement don't believe this – although it did happen to me last year. Seller came back and collected junk left.
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 Terry,
Tenant has moved out , property is still filthy with minor repairs required! The vendor is unable to provide keys to the back door, the Garage, an internal door and the front deadlock.
We have reduced a hold back that our solicitor suggested on Friday from $2000 to $750 dollars today! However the vendor wont budge…….he refuses to settle with any figure under sale price and wont make any attempt to clean or repair the damage himself.
We are currently at a stalemate!
Cheers Mick
Mick64, …. Just a thought, but if it has been left in this dirty condition shouldn't the tenants bond be used to cover any cleaning, repairs etc? This is presuming that the PM/Owner hasn't already given them the bond money back without a vacancy inspection.
Mystery
Realistically what can you do other than settle?
Keys are often an issue – many people don't have keys for various doors in their houses – they may never have locked the door with a key for example.
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
Mystery,
The tenants all 3 of them had only been in the property since the day before I first made an offer some 40 days ago…..no formal arrangements just $500 per week rent.
I am beginning to think the same thing Terry!
Terryw wrote:Realistically what can you do other than settle?Keys are often an issue – many people don't have keys for various doors in their houses – they may never have locked the door with a key for example.
Very true Terry, ….. One of the first things I do when buying is have a locksmith come in and change all the barrels to one key. This makes it easier having the one or two key's, but also for security as you don't want former tenants still roaming around with keys after they have vacated.
Mystery
Just had a thought and I don't know the answer, but someone here may.
Take Mick64's case, ….. How long could settlement be delayed whilst negotiations between parties on the filthy state of the property and who cleans it continue. As a buyer you are probably okay with the delay as you are not making loan repayments until you settle, but the seller probably is. If the seller pulls out do they risk penalties?
So if you are not in any great hurry as a buyer, …. Could you drag settlement out until you get your way? It would have to be cheaper for the seller to fix the mess rather than have to pay another months loan repayment.
Mystery
You must be logged in to reply to this topic. If you don't have an account, you can register here.
