Enforcing contract of sale without Vendor signature

Hi folks,
Have purchased many properties in the past. Have a strange situation happening with vendors.
Inspected a property at ofi..all good. Told by agents that due to multiple offers, at first ofi, the sale will go to sealed bids. This isn't my actual issue, even though it felt a little dodgy, no transparency etc.
Surprise, surprise we were the 'winning bidders' and told our offer, which we know was a little over the odds for location etc but as this regional area is a seller's market, we love the home as it is to our retirement home, never (hopefully) to resell. Vendors separated and was assured property was granted to the wife, but both still on title and both signed vendor statement. Also has solicitor caveats on title. Assume for family law costs. Wife signed COS two days after sealed bid closed. Husband is refusing to co-sign. When I asked agent, who I know is no legal expert. What happens if he refuses to sign, was advised that under some settlement? agreement. Even if he does not sign the contract will be deemed to be enforced 7 days after his ex-wife signed. How is that possible? My understanding was that both had to sign COS. So we don't even know when our cooling off period begins, was it last Wednesday when the wife signed? or when the husband is deemed to have consented, without his signature? Any comments would be appreciated.

 

Yikes! I suspect this will get more messy.

I'm not a solicitor so can't offer any advise but I'd speak to your solicitor/conveyancer to see what your options are.

Good luck.

 

Even if the contract could be binding how will the transfer be signed?

Are you prepared to spend thousands in legal fees? If not I would suggest you get legal advice about pulling out.

 

I recently encountered a client with a similar issue. Wife had FC orders permitting her to sell the title and her signature was sufficient together with the orders. The orders indicated he was uncooperative and for this reason granted disposative powers of sale over his interests subject to him receiving his share of net proceeds which she had to hold until settlement. Anxious for them but seemed to then be fine. At settlement wifs solicitor assigned 50% of the net proceeds to her ex after paying the bank. That is what the orders instructed. Apparently he had refused earlier orders to sell and court got shirty at it. So they took away his ability to refuse.

 

Yes, such a bizarre situation to find ourselves in. How can we rescind if the 3 day cooling off period passed, and we were not aware that it had expired? Suspect that ex-husband is just being a dick about the situation. Wife prepared the property for sale, rented furniture landscaping etc..so he knew it was happening and he knew she had control over selling it. Beats me why it went to the market with his name still on the title if they even suspected he would refuse to accept a reasonable, over the asking, unconditional offer. Still unsure if agent is correct that even if husband does not sign for a week after his ex wife signs the contract is still upheld. So he has no reason to sign in the first place knowing it will be done in his absence by his solicitor, who is also chasing him for debts and has a caveat over title. Patience is not my strong suit...cheesed off that we were forced into sealed bids, told it was final.. and then agent not following through to close the sale.

 

Your solicitor is best to address this and if the contract is enforceable or best to walk on. I imagine the selling agent will want the fee

 

Thank you Paul. Good to know there is a solid legal remedy in place. Beats me why he would be happy to rack up legal expenses.. just to spite his ex wife. Not that bright, obviously.

 

But satisfaction is priceless

 

The agent did hint that it was quite a messy divorce.

 

Hope your not using a conveyancer. There is more to it than a valid a contract, I think it would be unlikely that the solicitor can sign on his behalf.

 

Does the cooling off period start before the contract is fully signed?
Marg

 

In this case, it'll start when the judge signs the orders.

 

There are some people around who would do that and MUCH more and rack up legal expenses with absolutely no concerns about any thing outside revenge ...

Cliff

 

It actually sounds a lot like a scenario where family court orders are already in place that essentially say that either the Registrar or the wife can sign on behalf of the husband if the husband does not sign within 7 days.

I've dealt with orders like that occasionally as a family lawyer.

Unfortunately if its not something like that, then there could be a lot of other messier scenarios. Try to clarify if you can.

 

Correct, have now received confirmation that is exactly what has happened. Property was awarded to her and she chose to sell due to debts, fresh start etc. His solicitor will sign in his place, per previous judgement. COS to be exchanged tomorrow. Settlement can proceed without his signature to sign title transfer. He is not a happy camper!

 

Make sure to change the locks quick smart after settlement.

 

And make sure you check for damage as close to settlement as possible.

I heard of a case where the property was damaged with an axe prior to settlement - water tank split open etc.

 

My PPOR was a similar messy divorce.
The afternoon before settlement we did our final inspection, to find several issues.
As he was the last occupant but away on hols it fell to the ex wife to fix, she was the angry one, she finished emptying the place, took furniture we had agreed to buy, all the house plans and other doc's, left the pool filter running trying to clean it up with the hose running into it causing it to overflow.....

As per @Terry_w , inspect as close to settlement as possible !
Looking back, I'd of had settlement take place on site
(Handing over of cheques and keys right there)

 

And ensure you have insurance NOW

 

A witnessed signature is required to sell property unless the Federal or Supreme Court orders otherwise. If there is a mortgage registered on title, that will also add another layer to the issue. As it stands, more facts are required before further comment.

I hope everything resolves itself peacefully

Good luck.