Please help, Seller wanted to change their mind, not selling for us. Anything we can do?

Discussion in 'The Buying & Selling Process' started by Chung Le, 22nd Oct, 2017.

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  1. Chung Le

    Chung Le Active Member

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    Hi all

    I really need some advice from you guy regarding our situation.

    Story is: we offer to buy a property in Vicroria, offer accepted by owner. This property under major fire damage,the owner currently under the process claiming damage from his insurance.He is happy to sell to us 6 months ago with a condition we have to settle within a week after he received all payment from his insurance. Happy with this conditions and we signed contract, put 10% deposit to his solicitor,

    Now that his insurance agreed to pay for the damage, but they will pay less than what his expected, which obvious will make owner not so happy. Probably this is one of the reason why the want to cancel our contract, not sell to us.

    What can i do in this situation. We had already sold our old house, rent a place to live and ready to settle, renovate and then move in to live in this new home, now all change :(.

    I think the owner now keep delay and we dont even know if the insurance had already paid or not. Anyway way we can find out if he had been paid?

    Thanks guy
     
  2. Owlet

    Owlet Well-Known Member

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    Is the contract unconditional?
    What is the contracted settlement date?
    Have your solicitor send a notice to complete.
     
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  3. Beano

    Beano Well-Known Member

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    Offer him more money (I have done that before) ...if you think it is worth more.
    My solicitors said it is very costly (legal cost) and stressful to enforce a contract
    If you feel the property is worth more he said pay more , if you feel it is only worth what you offered just walk.
     
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  4. D.T.

    D.T. Specialist Property Manager Business Member

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    What other conditions were in the contact? If you say its just subject to him getting a successful claim then that's already happened, its settlement time. Get you conveyancer/soli to do notice to conplete.

    Unless there's other conditions you haven't mentioned?
     
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  5. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    Seek legal advice.

    Have all conditions of the contract been met? If so you can sue. This can be very costly, if it goes the full distance, but if he doesn't have a legal basis to not complete he may give in quickly.
     
  6. Chung Le

    Chung Le Active Member

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    Thanks you for all your advice and yes There is no other condition. It is now unconditional. We are now just waiting to settle. Any idea how much it will cost us if we take this to court. We probably going to that direction. I dont think give him extra money will work in this case. All he want is to cancel the contract or give him lot of extra $$. (Probably like 50-100k ). I rather give that money to our legal advice. I know it abit emotion decision but ..:(
     
  7. JacM

    JacM VIC Buyer's Agent - Melbourne, Geelong, Ballarat Business Member

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    Remember that there is no point suing someone and being awarded damages if the person does not have the amount of money the court awards to you (or assets that can be sold to raise the money). They can simply declare bankruptcy and you will never see any money. Your solicitor/lawyer should advise you accordingly.
     
  8. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    The court application fee would be around $2k, plus you are looking at $10k to $30k to get it going. It would be in the supreme court so pretty serious stuff as you will need a barrister and solicitor.
     
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  9. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    They have a property at least!
    But you don't know how much debt the mortgage secures.
     
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  10. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    And talk to your lawyer about lodging a caveat on title.
     
  11. JacM

    JacM VIC Buyer's Agent - Melbourne, Geelong, Ballarat Business Member

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    Yep that's what I meant by "or assets that can be sold to raise the money". As you say, whether there would be enough equity left to fund a lawsuit payout after the mortgage is paid out is a factor.
     
  12. D.T.

    D.T. Specialist Property Manager Business Member

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    If there's truly no other conditions, I don't see why you'd need to take it further. Can't renegotiate a contract thats already unconditional.

    Have your conveyancer/soli send a notice to complete or otherwise advise on other provisions within the contract. Report back after.

    Rather than additional money to either the vendor or on lawyers fees, it might be better to simply walk away if there's no result out of the above.
     
  13. hobartchic

    hobartchic Well-Known Member

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    I think I would walk away. Insurance claims can get very messy and I would not want to find I was fighting a legal battle with the insurance firm. Legal expenses would be enough for me to start looking for another property. You may find the property ends up on the market again due to underestimates on fixing it anyway. Better to stay on good terms with the vendors.
     
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  14. Chung Le

    Chung Le Active Member

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    that what we are after at the moment, we dont mind if we need to pay extra for lawsuit. As long as we can get that property.

    i know walk away could be an options, but if we pull out our contract a month ago, we probably lost the 10% deposit to the vendor. the law is there to protect seller, they should be there to protect buyer as well ?

    i have engaged a lawyer, he contacted vendor solicitor and was advised that vendor approved insurance pay out and currently waiting money to be transfered to his account before anything else can be proceed. My lawyer said dont worry too much, vendor can not cancel from the contract that easy so hopefully everything will be fine :(.
     
  15. Chung Le

    Chung Le Active Member

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    Thanks for your advice, will ask my lawyer to do so quickly. But what this will do though?
     
  16. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    It will make them think twice about not settling. You could prevent them reselling, mortgaging or otherwise dealing with the property. Under the contract you would probably have a caveatable interest
     
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