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How a 'cooling off ' is not a 'cooling off'

Discussion in 'Legal Issues' started by TMNT, 3rd May, 2016.

  1. TMNT

    TMNT Well-Known Member

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  2. Scott No Mates

    Scott No Mates Well-Known Member

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    And the problem is?

    The contract is with the vendor whose legal counsel has their contact details on the CONTRACT. If you're going to rescind, then have the solicitor withdraw not DIY.

    Zero sympathy.

    This has happened plenty of times especially with vendor having to sell for less.
     
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  3. Peter_Tersteeg

    Peter_Tersteeg Finance broker and strategist Business Member

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    The agent is a good informal channel to the vendor, but their job is done once the contract is signed.

    Any formal communications such as withdrawing from a contract, extending a finance period, expressing dissatisfaction with a building and pest, requests, demands, whatever, should always be done via the solicitors or conveyancers.
     
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  4. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    Nothing wrong with this decision.
     
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  5. TMNT

    TMNT Well-Known Member

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    The agent acts as the middle man. Why wouldnt you expect them to do their job if you are going to do such an important thing?
     
  6. EN710

    EN710 Well-Known Member

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    I thought once contact is signed, things like this is between solicitors. E.g. my price negotiation sent directly to vendor solicitor though i did tell the agent why
     
  7. Peter_Tersteeg

    Peter_Tersteeg Finance broker and strategist Business Member

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    Because they're the sales person and not a legal representative of either party and it is definitely not their job to do this.
     
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  8. sanj

    sanj Well-Known Member

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    Why wouldn't you have a solicitor or at least the competence to do your job properly as someone risking $4.4m?
     
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  9. Scott No Mates

    Scott No Mates Well-Known Member

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    Too tight ;)
     
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  10. larrylarry

    larrylarry Well-Known Member

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    Agreed. Best to sign a contract after it being reviewed by a solicitor and when terms need to be negotiated. Contract is formed between vendor and purchaser each represented by legal representatives. Communications between parties are done via solicitors. That's what you pay them for, to protect your interests.
    There are still people who would sign contracts and then ring up solicitors to review contracts relying on cooling off period. A bit risky.
     
  11. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    When a contract has been entered it is a promise between the parties of the contract - seller and vendor. You can't just make things up along the way, the parties have to follow the contract.
     
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  12. sanj

    sanj Well-Known Member

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    true, great example of being penny wise and pound foolish.

    sometimes the most expensive expenses are for things money isn't spent on.
     
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  13. Scott No Mates

    Scott No Mates Well-Known Member

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    What's the risk - property only goes up, right? :)
     
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  14. kierank

    kierank Well-Known Member

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    That is what I did when I pulled out of a contract due to B&P - told my lawyers who informed the vendor's lawyers.

    But I do feel sorry for these guys. $1M ouch!!!
     
  15. kierank

    kierank Well-Known Member

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    I always put a Solicitor Review Clause in the contracts I sign giving me 5 business days for my solicitor to review the contract is to my satisfaction or the contract is null and void and my deposit is returned in full.

    But like Mum deodorant - wouldn't leave home without it.
     
  16. Jerry O

    Jerry O Well-Known Member Premium Member

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    Unless you are the one representing yourself in legal matters, always communicate through a solicitor after signing contract. Its called a legal binding contract for a reason. And any changes needs to be done in an acceptable/legal manner.
     
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  17. willair

    willair Well-Known Member Premium Member

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    That's all they are,the binding part of the contract is with the principle of the real state company,
    the contract has nothing to do with the agent ,they work for the principle who pays them a % of the commissions..
     
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  18. Peter_Tersteeg

    Peter_Tersteeg Finance broker and strategist Business Member

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    At this point neither party is under any obligation to communicate anything to the agent outside of the agents own contract with the vendor. If the agent asks the purchaser if their finance is approved, the purchaser doesn't have to respond to the agent. This is between the vendor and the purchaser (or their legal representatives).

    In essence if either party wants to communicate something to the other party, it should be done directly or (preferably) via their legal representative. People are welcome to use the agent as a shortcut, but it needs to be formalised via the legal people.

    Likewise other parties are only considered informal means of communications or instructions. Last week I told a solicitor to prepare a draft letter to the vendor to exit a contract under a finance clause, but this was simply to prepare themselves to be able to act quickly once they received the formal instruction from the purchaser.

    I've negotiated directly with agents and solicitors as a finance broker. The purpose of this is to keep things moving quickly and smoothly. The final agreements have always been formalised by the solicitors.
     
    Last edited: 3rd May, 2016
  19. larrylarry

    larrylarry Well-Known Member

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    would be interesting to read the judgment if published, whether any plead for misrepresentations by agents etc.
     
  20. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    I bet they were arguing that serving notice on the agent is the same as serving notice on the vendor because of agency law