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Deposit release

Discussion in 'The Buying & Selling Process' started by evisional2, 1st Sep, 2016.

  1. evisional2

    evisional2 Well-Known Member

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    Hello

    I am in Melbourne. I signed a contract to buy an IP in Brisbane, subjecting to satisfaction with building and pest inspection report within 3 business days from the contract date. The reports turned out very bad, structural damages, termite damages. The contract signed by the seller on 23/8.

    On 25/8, I received the building and pest reports and I have immediately emailed to RE agent, seller conveyancing, my solicitor to terminate the contract on the same day. I also called to seller conveyancer and RE Agent on the same day. Seller conveyancer confirmed over the phone that she has received contract termination letter from my solicitor. RE agent said that he will release my deposit on Tuesday 30/8. I have deposited 5% of purchase price into RE trust account on the contract date.

    I went overseas on 26/8 and expected that fund was transferred to my bank account today but it not. I tried to contact RE agent but could not reach him. I left a SMS message on his mobile. Then, I received sms from RE agent. He told me he tried to contact my solicitor to request a letter from solicitor to cancel the contract but he could not reach them. He did not mention about deposit.

    It sounds like that he tried to cheat me. If my solicitor writes a cancel contract today (not within 3 business days), it means that I break the contract.

    I have emailed my solicitor to ask for help.

    While waiting for my solicitor's reply and taking action, can you give me some advice what the worst scenarios?



    PS. He should inform me of the property has termite damage prior to letting me sign the contract as this property is hard to sell and stay in the market last 2 months. I wasted my building and pest inspection due to lack of informing.
     
  2. thatbum

    thatbum Well-Known Member

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    You should just wait to get in contact with your solicitor. I fail to see the point of doing much else - including panicking over other scenarios.
     
  3. Username86

    Username86 Well-Known Member

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    Its only been 2 days since RE agreed to release deposit. Maybe give it a few more days... sometimes it takes up to 3 days for electronic transfers. I wouldn't be too concerned at this stage.
     
  4. evisional2

    evisional2 Well-Known Member

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    Today is 1 Sept. It is 6 days already. The main point is that he requested a letter from my solicitor to cancel the contract. It seems that he entraps me into breaking the contract. If my solicitor sends a letter to cancel the contract today, the contract termination date will exceed 3 business days from the contract date. The contract is subject to satisfaction with building and pest inspection report within 3 business days from the contract date.
     
  5. Username86

    Username86 Well-Known Member

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    I see.. sorry I should have read the post more carefully I was focusing on the dates and not the rest of the message..
     
  6. Scott No Mates

    Scott No Mates Well-Known Member

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  7. Agent30yrs.

    Agent30yrs. Well-Known Member

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    Under the legislation, the agent has to release the deposit within 14 days of written notification from BOTH parties solicitors. This is assuming your solicitor advised the sellers in writing within the 3 days...? It's not clear in your post.
     
    Terry_w and evisional2 like this.
  8. evisional2

    evisional2 Well-Known Member

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    Hi 30YrAgent

    I have just talked to the RE Agent's trust account manager and was advised same as you said. I will wait for my solicitor replying the agent. Hopefully, everything will be ok.
     
    Agent30yrs. likes this.
  9. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    Does the legislation actually say 'solicitor' - the written notice by the purchaser should be enough.
     
    Agent30yrs. likes this.
  10. evisional2

    evisional2 Well-Known Member

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    The contract states buyer notification in writing. However, the agent keeps requesting buyer solicitor though I told them that I am a buyer and I terminate the contract in writing at the right time. I am still waiting for my solicitor reply.
     
  11. Agent30yrs.

    Agent30yrs. Well-Known Member

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    Good point Terry, it probably says both parties
     
  12. evisional2

    evisional2 Well-Known Member

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    Everything is ok now. Got solicitor reply. Agent said that deposit will be released by next Tue.
     
    Perthguy, Agent30yrs. and Terry_w like this.