Real estate withdrawing lease once signed

Discussion in 'Property Management' started by Alyshajay, 4th Nov, 2017.

Join Australia's most dynamic and respected property investment community
  1. thatbum

    thatbum Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    5,850
    Location:
    Perth, WA
    It was also interesting to discover that one of the leading Australian cases on this issue involved a tribunal paying compensation for the difference between a $325/week rental and a $650/week subsequent rental that had one extra bedroom.

    There is significant leeway when a tenant needs to find a replacement tenancy on short notice I suppose.

    Robberds v Heidtmann (Tenancy) [2005] NSWCTTT 317

    Robberds v Heidtmann (Tenancy) [2005] NSWCTTT 317 (22 April 2005)
     
    Perthguy likes this.
  2. thatbum

    thatbum Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    5,850
    Location:
    Perth, WA
    Well me too to be honest. I thought the REA/LL would take the option of just honouring the contract rather than risk the raft of potential costs in the alternative. I don't know if they have a replacement tenant lined up - I doubt it since the property has been re-advertised.

    I'm not sure which property you were referring to when you were talking about "another tenant", but Alysha has tenants moving into her current residence very shortly and so staying put is not really an option for her.
     
    Archaon likes this.
  3. Archaon

    Archaon Well-Known Member

    Joined:
    20th Mar, 2017
    Posts:
    1,896
    Location:
    Newcastle
    Sounds like a rather terrible situation to be in @Alyshajay, sorry to hear, hope it works out in the long run.

    Hats off to you @thatbum, excellent work!
     
    luckyone likes this.
  4. Westminster

    Westminster Tigress at Tiger Developments Business Member

    Joined:
    3rd Jun, 2015
    Posts:
    11,357
    Location:
    Perth
    The place that Alysha wanted to rent is still vacant. The place that she was living in and gave notice on has the new tenant moving in this weekend so she cannot stay where she currently is and needs to be out on time.

    @thatbum thank you for taking on Alysha's case.
     
    luckyone and Perthguy like this.
  5. wylie

    wylie Moderator Staff Member

    Joined:
    18th Jun, 2015
    Posts:
    14,020
    Location:
    Brisbane
    I get it now. She must move from where she is now as new tenants are about to move in.

    So it seems even with a lawyer pointing out the possible ramifications of the agent and/or landlord at the new place if they don’t honour the lease, they are still refusing to allow her to move into the house and are continuing to advertise it?

    What happened at the Thursday meeting with Tenancy WA or was that appointment canceled now a lawyer is acting for her?

    I can’t believe they’ve not backed down and said “move in as arranged as per the lease”.
     
  6. Pumpkin

    Pumpkin Well-Known Member

    Joined:
    26th Jun, 2015
    Posts:
    1,342
    Location:
    Brisbane
    Just wonder what if Alsya remove the pets? Put it in a pets hotel or something? Would she still be allowed to stay?

    What I’m getting at is, I wonder whether it’s personal? What I’m reading is the Owners do not want Alsya at all, and willing to face all costs......
     
  7. D.T.

    D.T. Specialist Property Manager Business Member

    Joined:
    3rd Jun, 2015
    Posts:
    9,190
    Location:
    Adelaide and Gold Coast
    Pretty expensive exercise for the agent!
     
    Tom Rivera likes this.
  8. S.T

    S.T Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    641
    Location:
    Melbourne
    Curious to see who would wear the costs in this case, landlord or agent? Echo other peoples thanks @thatbum for taking this on.
     
  9. Westminster

    Westminster Tigress at Tiger Developments Business Member

    Joined:
    3rd Jun, 2015
    Posts:
    11,357
    Location:
    Perth
    One question that springs to my mind is whether the owners had not allowed pets but the PM filled out the paperwork wrong and when the owners found out they wanted to stop the lease.
    This seems a somewhat likely situation as it’s now re advertised with no pets allowed.

    So maybe owners filled it out wrong or PM filled it out wrong.
     
    Tom Rivera likes this.
  10. wylie

    wylie Moderator Staff Member

    Joined:
    18th Jun, 2015
    Posts:
    14,020
    Location:
    Brisbane
    If this is the case, then the agent should wear the costs over and above what it would have cost to move to this place.
     
  11. thatbum

    thatbum Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    5,850
    Location:
    Perth, WA
    No it doesn't seem to be the case. I can't give all the details, but the pet clause appears to have been specifically negotiated and approval gotten from the owner before the REA got back and cleared the lease for signing.

    Landlord. I actually don't have any real reason to suspect the agency has actually done anything 'wrong' per se. From what I can tell, it probably would suit an agency to let the tenant have the place and collect their letting fee - rather than have to deal with me and all this.
     
    craigc, Archaon, Ted Varrick and 8 others like this.
  12. mikey7

    mikey7 Well-Known Member

    Joined:
    30th Mar, 2016
    Posts:
    1,173
    Location:
    Sydney, Brisbane
    @thatbum , any update (if you're allowed to provide)?
     
  13. thatbum

    thatbum Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    5,850
    Location:
    Perth, WA
    There's been an application to the court, but I haven't received notice of the first hearing date yet. Depending on when it is and a few other things, it might be able to be brought forward, but possibly not as well.

    Unfortunately the delay in getting a hearing means its more likely that damages will be the remedy rather than specific performance.
     
    Kassy, Terry_w, mikey7 and 1 other person like this.
  14. Excalibur1

    Excalibur1 Well-Known Member

    Joined:
    19th Jun, 2015
    Posts:
    335
    Location:
    Sydney
    Hope all is going well and that you get the costs awarded. good luck
     
  15. thatbum

    thatbum Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    5,850
    Location:
    Perth, WA
    Update: The matter is listed for tomorrow morning at Perth Magistrates Court for its first court date. Unfortunately its taken this long just to get that, and Alysha is now settled into a new comparable tenancy.

    Its hard to say what will happen tomorrow, but the claim is now purely for damages. We may or may not be able to get orders tomorrow - lots of variables involved.
     
    Kassy, Perthguy, Air_Bender and 6 others like this.
  16. Air_Bender

    Air_Bender Well-Known Member

    Joined:
    9th Jan, 2016
    Posts:
    691
    Location:
    Melbourne
    I may not know who you are or ever require your services but it truly warms my heart to know that people like you still exist in this world.

    Nothing but the utmost respect for you thatbum. Thank you.
     
    craigc, Ted Varrick, mr500 and 8 others like this.
  17. Tom Rivera

    Tom Rivera Property Manager Business Member

    Joined:
    1st Jul, 2015
    Posts:
    2,718
    Location:
    South East Queensland
    I have my fingers crossed for you both! Go get them!
     
  18. thatbum

    thatbum Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    5,850
    Location:
    Perth, WA
    So, it effectively settled for $3,000 yesterday. Took quite a few hours of mediation to get there.

    Alysha's amended claim was worth just under $7k, comprising of nearly $3k in direct financial loss and $4k general damages. The settlement figure covers the actual financial loss at least.

    As I suspected, there was no time to hear the matter on the day, so if there was no agreement, it would have been programmed for statements of claim and defence, and then trial probably 3 to 6 months away.

    As I also suspected, nothing I heard from the REA or LL on the day made be think they had a real defence to the claim legally. But, that doesn't really matter now that its settled.

    Importantly, Alysha herself was happy with the outcome.
     
  19. wylie

    wylie Moderator Staff Member

    Joined:
    18th Jun, 2015
    Posts:
    14,020
    Location:
    Brisbane
    That is a great outcome I think and better than waiting even more time to possibly get no more than you managed to get yesterday.

    Do you think anyone thought she would fight them? Do you think they were surprised she didn't just roll over and accept their bullying?

    You really have done a very good thing here @thatbum. I say "thank you".
     
    Air_Bender, Kassy and Tom Rivera like this.
  20. D.T.

    D.T. Specialist Property Manager Business Member

    Joined:
    3rd Jun, 2015
    Posts:
    9,190
    Location:
    Adelaide and Gold Coast
    @thatbum is a bit of a legend. Both on here and in real life.