Buyers lose their $75k deposit

What are everyone’s opinions on this? In the end Westpac refunded the couple their deposit and some but probably only cos of the negative publicity it would generate.

Do you think the sellers while they were legally allowed to terminate the contract and keep the 75k deposit, are a bit scummy for doing so since there was only a day delay in the settlement

QLD has some really horrible laws. What would you do if you were the seller in a similar situation ?


Couple loses $75k deposit in bank blunder

 

I think some people lack a moral compass.. no doubt the vendor was incentivised by the deposit and the rising market. How they can walk away with a couples life savings beggars believe..

 

Westpac also gave them the $75k, plus legal fees back as well as an extra $10k to compensate for the stress.

I feel sorry for the couple who missed out, but it’s not like the vendors have done anything illegal.

The purchasers didn’t settle and so the vendors have a right to the deposit. And the market moved by $65k in the time since the purchase.

The vendors have just been in the right place at the right time to benefit. And they have received more than their money back.

If it happened to me though as a purchaser, I would be fuming!

 

Absolutely!

 

If it's such a big issue, Qlders should get the law amended.

 

Probably not even required. Just use a different contract or amend the contract terms.

 

I was surprised the ban gave them $100k

 

I think it says a lot about the seller. Not a good person in my eyes. They could have cancelled the contract and sold it at a higher price but to keep the buyers 75k as well. Just pure greed. Its theft in my eyes, even though the law allowed them to do it.

 

But why agree to something in a contract and then kick up a fuss later because things don't go your way.

 

Channel nine picked it up and then the Bank caved of course, don't know why anyone would be surprised by a bank trying to cover it's own butt...
a 24 hour extension was all that was required, I don't reckon the sellers were put out by that at all, they're just greedy.
Yes it was 'legal' but you don't have to be so damn greedy, no fault of the buyers that the bank couldn't settle on time.

 

I was wondering why they paid out so quick and so much

 

It’s not as simple as that.. in this hot market offering a longer settlement prior to signing the contract won’t get accepted by the vendor.. so you’re at the mercy of the bank to get settlement done in 30days. Asking for extensions isn’t uncommon in Qld, particularly in busy times.. I know, I’ve had to ask. I’d say 99% of vendors would be reasonable and give a 24hr extension.. or failing that cancel the contract, give the deposit back, and accept a higher offer. This vendor has proven not to be reasonable.

 

I think the issue is that under the standard contract it is time of the essence. This could be changed by amending the terms of the contract, but in a hot market any vendor would be unlikely to accept it. If it were standard that would make it easier.

 

We changed the contracts with our purchases in QLD to allow more time in this kind of situation. But we are seasoned purchasers and have no issues or qualms changing contracts to suit our needs and risk perceptions. First time buyers are going to overlook these things. From the response we got when we have made changes to contracts, even most other buyers who aren't first timers miss these things. They really should be changing the law to provide a little protection here. At least in line with other states.

I do think the sellers were morally reprehensible in their actions. I can understand them taking advantage of not allowing an extension to get a higher sale price. But that is still a moral grey area. But to keep the 10% deposit on top of that definitely crosses the line. It's taking advantage of anothers misfortune, even though the other party has acted in good faith. You have to be completely heartless to do that. I wouldn't be able to look at myself in the mirror if I did that. And I would certainly be worried about karma biting me in the backside if I were them.

I am glad the bank ponied up in the end.

 

I would have lawyered up and fought like hell. win lose or draw I would have made them earn that $ if they insisted on acting like pond sludge. It seems punitive, not proportionate for the loss especially when they signed another contract for more.

 

Fair enough in my eyes. The contract is pretty clear. Don't hate the player!

Queensland is actually a very favourable jurisdiction for purchasers.

Edit: not saying that I would keep the deposit if I was the seller... but I certainly don't think they've done anything wrong.

 

Long time lurker. First time poster. The reason why I started this thread was cos I bought my first brisbane investment settling in early December so I wasn’t too familiar with QLD law when I signed the contract. I freaked out when I read the article and immediately e-mailed my relationship manager at the bank and my solicitor to take precautions that everything will settle as planned lol.

 

Before my comment i will reinforce that i think it is morally wrong, but lets play devils advocate.

The sellers would likely still be up for the agents commission regardless of it settling as all conditions had been satisfied so 20-30k + advertising. And maybe the sellers were also relying on settling that day so they could settle on the property they are moving to and because the settlement didn't go through, they lost the next property and the deposit they paid. The sellers could just be recouping some of their losses.

 

I think Westpac or any bank that fails to settle should automatically be liable with significant penalty. It's not good enough to put home buyers through that stress. Very poor from Westpac and this culture of banks leaving things till the last moment is poor.

Seller is within their rights to do what they did. I couldn't do it but don't hold it against the seller.