Advise on dodgy buyer

Hi Folks,

Hoping someone can chime in with their two cents worth here.

Recently sold a property. Contracts exchanged with a deposit to be made within 7 days.
Deposit never arrived. Property put back on the market... buyer (who never put through the deposit) has now lodged a caveat on title to cause issues at upcoming auction.

Any advise greatly appreciated.

 

Have your solicitor smack them down for abuse of caveatsm and lodge a lapsing notice... they have no caveatable interest in the property if they have been correctly notified of their default under the contract

 

Thanks Dave.

There's the rub... solicitor notified them of a 'repudiation' of their contract. I think the buyers solicitor is arguing that it's classified as a 'default' and not a 'repudiation'.

If this in fact turns out to be the case, should my solicitor issue another letter to them?
Bit confused to be honest, and just trying to make sure they can't block the auction in two weeks.

 

What does your solicitor say about the caveat?

 

Tell them they are welcome to purchase the property if deposit paid inito agent/solicitors trust fund by Monday 5pm. And when they inevitably fail to do so, issue notice yet again. They cant simply lodge a caveat on a house if they have not (or cannot) pay the deposit to be a pest. The caveat can be sustained only if they have a caveatable interest, and failure to meet the terms of the contract of sale likely is not one.

 

Only just found out, so waiting for a conversation first thing Monday morning.

 

You're a rockstar Dave!... thank you very much. When we issue notice, do you know what the period is they have to respond?

 

Should be able to get it sorted out. Out of interest, last year in Perth I bought a property with 2 caveats and a Sale or Seizure Order. There was nothing preventing me going unconditional on the contract but I could not have the title transferred into my name until the caveats had been lifted.

 

Really.. What did your solicitor advise ?
I see a fundamental issue of contract law and damages occurring.

 

I would not encourage that to enliven the time to pay any deposit. No deposit - no consoderation = no contract. No contract exchange.

 

Why did you say it WAS sold ?

 

Thanks PethGuy and Paul,

And yes... sold as in past tense. Contracts were exchanged over 3 weeks ago.
Buyer never deposited the funds and has been stalling. Out of the country etc.

I get the feeling we are being played.
Have others seen this happen before?

 

Not necessarily.

 

@Terry_w you need a coffee? Or your computer need a smack

 

Maybe he's trying to increase his post count... because he needs more exposure on the forum!!! Lol

 

I wouldn't either.
On top of that they are liable for damages in delaying the sale of a property and wasting your time. I wouldn't be encoragibg them to waste more time.

 

Mitigate losses and take legal action on the buyer, it's not a complicated case

 

You folks are awesome. Thankyou.

First sale... So a bit wet behind the ears. Was hoping it was going to be straight forward. But live and learn right?

My solicitor is a small family run shop and the buyers end is a large city firm. They've suggested I might need a bit more 'firepower' to squash it.

If anyone has a solid Melbourne based property specialist they can refer... I'm all ears.

 

Larger firms are always better and Denis Denuto's small practice history in defending claims may be lacking. That said I have seen some small firms who are all round experts with solid cred.

PCers who would you recommend Opal speak to ?

 

Thanks folks. Have sourced a property litigation lawyer.

Pulled the credit report for the buyer. Looks like he has a history of doing this - basically setting up company's... running up huge bills and closing them down. Just spoke to a creditor of his and it wasn't pretty (screwed them for hundreds of thousands of dollars).

Bad news all round.