Any way to cancel property purchase due to the pandemic?

Discussion in 'Legal Issues' started by Gu42, 18th Mar, 2020.

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  1. Gu42

    Gu42 Active Member

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    I have a property settling in 2 weeks, the deposit has been paid?

    I know this is a long shot but is there anyway ti cancel the purchase due to the announcement of the global pandemic?

    Any advise would be appreciated.
     
  2. wylie

    wylie Moderator Staff Member

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    Has the contract gone unconditional? Do you have a solicitor acting for you?
     
  3. Properwin

    Properwin Well-Known Member

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    Why cancel?

    Is it an IP or PPOR?
     
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  4. Gu42

    Gu42 Active Member

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    Its an IP, im unsure about work in the near future, I'd feel better if the money I had in the bank could be used to maintain my PPOR if work goes quiet.

    I dont have a solicitor im using a conveyancer, and the contract has gone unconditional.
     
  5. Scott No Mates

    Scott No Mates Well-Known Member

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    That sort of cost saving doesn't when you need actual legal advice.

    You might find that you could break due to insanity, in your case it may be an irrational fear leading to temporary insanity but you will require a couple of psychologists reports.

    @See Change has recently put up a thread about the topic and a failed sale.
     
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  6. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

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    If you die the contract may be rescinded - Thats the good news. If you rescind or fail to fulfil the contract unlawfully there would be damages sought by the vendor.
     
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  7. Gu42

    Gu42 Active Member

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    That answers the question then I guess, no real way out.
     
  8. larrylarry

    larrylarry Well-Known Member

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    Cole v Raykir Holdings Pty Ltd [2019] NSWSC 1017 - what does clause 15 of the contract say? did your conveyancer explain that? Come settlement day and you can't settle or don't want to settle, a notice to complete will be issued to you...and as @Paul@PFI said above, you may be sued for damages.
     
  9. The Y-man

    The Y-man Moderator Staff Member

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    Not having a go at you - and it's all easy in hindsight - but isn't this a risk that exists at any time? Sure the pandemic now accelerates the situation for some, but you would have had some risk mitigation in mind right? i.e. against vacancies, job loss etc.

    Are your skills transferable? Even if they are not, are there other jobs you can go into? Coles is hiring another 5000 casuals. Courier companies are literally run off (driven off) their feet....
    These are all mitigation everyone needs to consider when it hits the fan.

    The Y-man
     
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  10. The Y-man

    The Y-man Moderator Staff Member

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  11. marmot

    marmot Well-Known Member

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    There was mention on the radio yesterday, that they think peak infection for Australia will possibly be in August and then we have the normal flu to also deal with.
    So its not going to dissappear in the next couple of months , immigration will be hit hard this year .
     
  12. Gu42

    Gu42 Active Member

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    Ill go thorugh with it (I have no option). ill be able to sort out alternative employment if the industry I'm in goes quiet, but probably not at the rate im on currently. Just seems to be a very bad time to have bought an IP. And to be honest I'm more worried about interest rates going up combined with a lower income.
     
  13. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

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    Media are all running around and guessing as its what they do to sensationalise their existence. Some like Karl want to talk it up like its a mass extinction event and claiming things that he makes up in his own head. Its not helping. Italy has data showing rates on the decline while isolation seems to have helped but its early. There are in their flu season. Whether its a trend or a blip nobody knows but its being watched by scientists.

    Interest rates wont be going up for a while.
     
  14. qak

    qak Well-Known Member

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    I don't think you'll be seeing an interest rate rise! Not this year anyway ...
     
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  15. MTR

    MTR Well-Known Member

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    interest rates are likely to go down in April .25%, what has been reported?
     
  16. MTR

    MTR Well-Known Member

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    Have a friend who was selling, where the buyer could not proceed with the sale as their circumstances changed

    my friend kept 50% of deposit and let the buyer off the hook. Problem is you are very close to settlement, negotiation may not be an option??? Also seller would i expect want some form of compensation
     
  17. willair

    willair Well-Known Member Premium Member

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    That's good in a few years time you look back on this day and think what was the worry about..

    With interest rates that will be the least to worry about..

    One of our daughters has a settlement going through thanks to ''RPI's.''Team in a few hours good luck..
     
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  18. # 1

    # 1 Well-Known Member

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    I think interest rates will be staying low for at least 3-5 years. I've also got an IP settling next week and I'm still happy to proceed with it as I'll be getting close to 6% net yield which is better than money in the bank.
     
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  19. TMNT

    TMNT Well-Known Member

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    i guess the real concern is if property prices fall by 10% for example, youve purchased at the peak, this is further compounded by any tenant issues you may have due to the virus and economic implications, whats the point in getting a good IP if its going to cost you $10k in arrears, damage, insurance costs

    edit: I just read that coles had 35,000 applications for 5000 positions for that job,

    I mean how does HR in coles choose who is better?
     
  20. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    Automation weeds out most