Any way to cancel property purchase due to the pandemic?

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

Join Australia's most dynamic and respected property investment community
Tags:
  1. Gu42

    Gu42 Active Member

    Joined:
    21st Oct, 2019
    Posts:
    26
    Location:
    Melbourne
    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

    Joined:
    18th Jun, 2015
    Posts:
    10,119
    Location:
    Brisbane
    Has the contract gone unconditional? Do you have a solicitor acting for you?
     
  3. Properwin

    Properwin Active Member

    Joined:
    5th Feb, 2020
    Posts:
    29
    Location:
    Melbourne
    Why cancel?

    Is it an IP or PPOR?
     
    The Y-man likes this.
  4. Gu42

    Gu42 Active Member

    Joined:
    21st Oct, 2019
    Posts:
    26
    Location:
    Melbourne
    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

    Joined:
    18th Jun, 2015
    Posts:
    20,353
    Location:
    Sydney or NSW or Australia
    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.
     
    TMNT and qak like this.
  6. Paul@PFI

    [email protected] Tax Accounting + SMSF Business Plus Member

    Joined:
    18th Jun, 2015
    Posts:
    15,138
    Location:
    Sydney
    If you die the contract may be rescinded - Thats the good news.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.
     
    qak likes this.
  7. Gu42

    Gu42 Active Member

    Joined:
    21st Oct, 2019
    Posts:
    26
    Location:
    Melbourne
    That answers the question then I guess, no real way out.
     
  8. larrylarry

    larrylarry Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    5,138
    Location:
    Sydney
    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 @[email protected] said above, you may be sued for damages.
     
  9. The Y-man

    The Y-man Moderator Staff Member

    Joined:
    18th Jun, 2015
    Posts:
    8,928
    Location:
    Melbourne
    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
     
    kierank likes this.
  10. The Y-man

    The Y-man Moderator Staff Member

    Joined:
    18th Jun, 2015
    Posts:
    8,928
    Location:
    Melbourne
  11. marmot

    marmot Well-Known Member

    Joined:
    12th Jun, 2006
    Posts:
    1,215
    Location:
    N.S.W , W.A
    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

    Joined:
    21st Oct, 2019
    Posts:
    26
    Location:
    Melbourne
    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@PFI

    [email protected] Tax Accounting + SMSF Business Plus Member

    Joined:
    18th Jun, 2015
    Posts:
    15,138
    Location:
    Sydney
    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

    Joined:
    21st Nov, 2011
    Posts:
    1,215
    Location:
    Sydney
    I don't think you'll be seeing an interest rate rise! Not this year anyway ...
     
    housechopper2 likes this.
  15. MTR

    MTR Material Girl Premium Member

    Joined:
    19th Jun, 2015
    Posts:
    22,018
    Location:
    My World
    interest rates are likely to go down in April .25%, what has been reported?
     
  16. MTR

    MTR Material Girl Premium Member

    Joined:
    19th Jun, 2015
    Posts:
    22,018
    Location:
    My World


    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

    Joined:
    30th Sep, 2009
    Posts:
    5,531
    Location:
    ..Village Idiot...
    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..
     
    Propertunity, Perthguy and # 1 like this.
  18. # 1

    # 1 Well-Known Member

    Joined:
    6th May, 2019
    Posts:
    267
    Location:
    International
    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.
     
    KingBendtner likes this.
  19. TMNT

    TMNT Well-Known Member

    Joined:
    23rd Jul, 2015
    Posts:
    5,574
    Location:
    Melbourne
    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 Plus Member

    Joined:
    9th Jun, 2006
    Posts:
    30,862
    Location:
    Australia wide
    Automation weeds out most