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Backing out of sale contract

Discussion in 'Legal Issues' started by King, 31st Jul, 2016.

  1. King

    King Active Member

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    hi all. has anyone got experience with backing out of a sale contract, as a seller?

    long story short. builder buying the whole street in. approached us while we were away and next door neighbour told them they'll notify us themselves but didnt. instead they offered to buy our place which we agreed to sell back in april with 6 months settlement.

    does anyone know an experience lawyer to handle these matters?

    need all the help we can get. thanks!
     
  2. Scott No Mates

    Scott No Mates Well-Known Member

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    • Have you signed anything?
    • Did you legal advice?
    • Has the purchaser breached any duty which is an essential term of the contract?
     
  3. King

    King Active Member

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    yes signed the contract in april.
     
  4. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    Pretty hard for a seller to rescind or terminate a contract of sale.
    Has the purchaser breached any terms of the contract?

    If the purchaser is buying up the whole street it will be unlikely they will let you terminate without a fight.

    You had better seek legal advice.
     
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  5. Kinnon Bell

    Kinnon Bell Finance Broker

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    I think what's happened in this instance is the neighbour has done a shifty and not told the OP that a developer has offered to buy property and has instead made an offer themselves lower than what the developer has offered with the intent to onsell to the developer for a profit.

    Or at least, that's how I read it?
     
  6. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    Oh, that is sneaky!

    If that was the case the neighbour would have had no obligation to let you know a developer was making offers - unless you had appointed them your agent or trustee perhaps.
     
  7. Jamie Moore

    Jamie Moore MORTGAGE BROKER - AUSTRALIA WIDE Business Member

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    Talk to your solicitor ASAP

    Cheers

    Jamie
     
  8. King

    King Active Member

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    thats correct Kinnon... isnt there a law against that? fraudulent?

    @Terry_w wouldnt they have an obligation to pass the message or at least tell us about the offer?

    I think i need a lawyer for this case... does anyone know a lawyer thats experienced?
     
  9. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    I can't see any legal basis for this.
     
  10. sanj

    sanj Well-Known Member

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    What state? try @RPI , if he can't help u directly he may know someone in your state who cab.

    I don't see aNY legal basis for them needing to tell u about the offer but perhaps a lawyer can find a loophole out or help u formulate a strategy that works. is your property really key to the development going ahead? ie is it in the middle of the street?

    you might be able to come to some sort of commercial arrangement where you get a bit more than now but a bit less than if you'd sold directly to developer but in return you don't hold back their entire development by refusing to settle, you'd need to know your legal standing and potential ramifications prior to doing that though
     
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  11. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    Engage a property lawyer. You could just refuse to settle and see what they do. They would have to take you to court to force a settlement and this may be something they wouldn't want to risk. But they may have already onsold it to the developer.

    But weren't you suspicious that a neighbour wanted to buy your property after a developer started making enquiries?
     
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  12. Gockie

    Gockie I'm an ISTP-A female, so I might be a bit quirky! Premium Member

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    I think he didnt know the developer was making the enquiries
     
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  13. King

    King Active Member

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    @Gockie is right @Terry_w ... we werent aware as we were overseas...

    thanks @sanj ... will contact RPI now...
     
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  14. Brady

    Brady Well-Known Member

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    Good luck, sounds like neighbour hasn't been the best neighbour. But if you agreed on a price and signed an contract, struggle to see how you're going to back out of it because he's onsold for higher price. You were happy with the price you agreed and signed for are you only now unhappy as you believe they have obtained a higher price for onselling?
     
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  15. King

    King Active Member

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    pretty much it @Brady ... main reason is buyer withholding information from us and we couldnt make the "best" decision without that info... in a way conning us? fraudulent?
     
  16. Brady

    Brady Well-Known Member

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    Not at all @King they're a buyer, can't see why they would have to disclose anything. They provided a price, you agreed and signed a legally binding contract.
    I'm no expert in this and suggest you seek professional advise, but by the sounds it's going to be an uphill battle for you.
     
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  17. Perthguy

    Perthguy Well-Known Member

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    I have seen this done to a close family friend. REA lobbed up on the door, made a "ridiculous" offer for a house and it was accepted on the spot. Turns out the REA was a con artist and the seller had been ripped off. It was too late though. The contract was valid and binding and the seller had to downsize into a smaller house in a less describable neighbourhood.

    We do our DD when buying. We need to do our DD when selling too.
     
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  18. Greyghost

    Greyghost Well-Known Member

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    I don't think you have a leg to stand on sorry mate.
    You guys just feel hard done by as someone played the game better than you did.
    If you guys didn't maximise your situation then that has nothing to do with any other party..
    Regardless of whether it was the right thing to do or not, your neighbour saw an opportunity and capitalised on it. Why would he want to tell you his reasons for buying? Of course you wouldn't then sell to him..
    Whether it is for on sale or for his grandmother, a price was proposed and you signed...

    If a developer knocks on my door tomorrow and gives me a price I am happy with, who am I to ask him what profit margin he anticipates making on the development or flipping of my property.. It has nothing to do with me..

    Not meaning to be harsh I'm sorry..
     
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  19. sanj

    sanj Well-Known Member

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    A lawyer, terry, has advised you to get legal advice. From the outside looking in general consensus is that you might struggle to legally get oit of your contract but at this point no one is going to be able to give you a more considered opinion as youre asking for opinions on a contractual issue from people who dont even have the contract.

    Speak to an appropriately qualifird and competent lawyer, hopefully a commercially minded one, and work out your options.

    How much money are you talking about btw? How much more did the neighbour sell it to developer for vs what u got?
     
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  20. Blueskies

    Blueskies Well-Known Member

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    That is a massive sneaky move by the neighbor. Definitely unethical but sounds fair enough from a legal standpoint.

    I have encountered a very similar thing but on the other side, I had an unconditional contract on a place and the seller wanted to pull out because a better offer came along. Sorry but the the purpose of a contract is to lock both sides into an agreement.

    You were obviously happy with the price the day you signed the contract so channel that emotion again and forget about the additional windfall your neighbour may get. Who knows, maybe karma will get them and the builder will not go ahead with the development, would you let them out of the contract then?
     
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