Seller did not honor our agreement, so I pulled out of the contract

Hi Guys,
I want to get your opinion about a contract I had signed last week. I found a good house, and I negotiated the price and everything was fine. I made my offer and there was couple of things to be done with a cost around 2K's. I was happy to do it and get the price reduced.

Anyway the selling agent wanted everything to be done and dusted before Christmas, and the seller was very keen to sell. They confirmed all the repairs agreed to to be done. I wanted this written in the special conditions to guarantee it will be done. so I arranged with my solicitor to do so.

Seller did not like the special conditions in the contract, but at the end, they agreed to.

Agent put the special condition in the contract, all good, I signed the contract, sent for seller signature.I was expecting the contract signed by the seller the next day. But it was not,

REA contacted me and said that I have to do the insurance straight away to be in the safe side. I agreed with that, given that I will be liable since it is signed by the seller. So I need the vendor to sign first.

One day later, I spoke to the agent, and she said that the seller do not want to sign with the special conditions, and I have to remove it from the contract.

To be honest, I was very frustrated, as both REA and vendor agreed to the conditions, and one of them did not honor the agreement.

I told her that my contract is signed as is, if it is not signed by close of business, the contract is no longer valid (got the proper legal text from the solicitor)

The reason I pulled out is:
1- One of them did not respect what they agreed on.
2- I felt this is a selling strategy to get me locked it, with a signed contract, insurance policy,...etc, so I will agree to what they want.
3- How do I guarantee if I change the contract, that they won't ask for more money

What do you guys think, should I have handled this situation in a more diplomatic way. e.g. arranging with the agent to meet half way,...etc

Thanks
Ramez

 

How badly did u want the property? Principle, unfairness etc is irrelevant, for 2k I wouldve let it slide as it is a miniscule amount, almost an accounting error

 

often people can't be bothered to do the work so you would just reduce the price accordingly in advance following a discussion between RE, vendor and yourself. $2k is peanuts so hopefully you wanted to walk away regardless.

 

I'd think you should have something like at least 5 days cooling off period for the insurance?
And I agree with the other posters... 2k is nothing. Do you want the deal or not?

 

I want the deal, I wouldn't go to the contract stage if I do not want it. however, the pressure was too much from the REA.

I have inspected this house a month ago. It was with another REA, I noted the repairs and I made my final offer, it was accepted then next day rejected.

Then they changed agents and the house went to the current REA, I contacted them, and they said all the repairs were done, I inspected again, but nothing was done.

I have a feeling that they will change again even if I accept to removing the conditions. I know the seller have a number in mind, and this number is not going to work for me.

Thanks
Ramez

 

Just remember there a saying... Can't see the forest for the trees.
Don't let a measly 2k get in the way of a deal or no deal.
Any chance of early access yourself to fix simple stuff pre settlement? (Assuming insurance allows)

Ps. What else do you think they could change? Can you get your lawyer to fine tune?

 

@Gockie , as I am thinking now, that I will be in touch with REA tomorrow to see how we go from there. the house is in a good location, and have very good potential.

Fingers crossed. will see how things will go tomorrow.

Thanks
Ramez

 

Are you saying you feel that once you agree to removing the special conditions they will reject your offer and try push you up on the price?

If you don't care about the $2k agree to remove the conditions, if they then try to push you up on the price and you don't want to go higher - walk away.

It's just business at the end of the day, look at the figures and leave emotions out of it as much as possible.

 

Ps. If its still on the market after a month, with changed agents... I don't think the vendors will actually want to make you jump over a barrel necessarily. (Unless they are crazy, and you can't do anything with crazy. Move on if they are). However I'd say their listing has now gone stale.

You maybe their best/only hope of a sale.
Just wondering if the commission will have to be shared though for the agents since you were introduced by that other agent. Same agency or different?

 

As a seller I once baulked at special repair conditions as they can be a very grey area ie repaired to purchasers satisfaction. I just reduced the price by some of the amount and we both signed. What is your ball park price!

 

2k?

How much did you agree to buy for?

 

Eh I'm obviously a suspicious person, what reason do they have to remove the special clause other than that the repairs needed are significantly worse than advertised and they want to pull a shifty on you?

There is just no good reason for what they're doing other than that they're dodgy.

 

That was my first reaction when I read this, too.

 

Good topic here... 2K is not worth the loss of a good property it would only increase your repayments by .50 cents a month. But I can also understand your frustrations and I also agree with you a few you that there is something else going on. It might be worth while to invest in getting the property inspected by a builder.

 

$3k

 

@Johnny Cashflow , @Scott No Mates,
It is not about 2K's or 3K's. I agree with the suggestions above that it is not a deal breaker at all.

My point was and still that this is kind of a silly sales strategy, not sure if it will work with someone else, but for sure not working with me.

I have contacted the agent today, and they said they need 15K's more now as per the new market appraisal. But this is not true, this was the price the vendor wanted from the beginning (They forget that I made an offer with the previous REA and they said that this number is what the vendor will sell for).

The house is around the 300 K mark, and 15 K is 5% which is not a small percentage.

Good luck for them selling it, but my numbers doesn't match.

Thanks
Ramez

 

Could you have repaired these "defects" for 2k?

 

Yes, I offered that I do the repairs, and get the price reduced. and they came back that they will do it.

Thanks
Ramez

 

Insurance not worth worrying about, get the cover, if the contract not signed then you just cancel, NRMA gives you 21 days to pay I think...

I would have a clear agreement with the agent the vendor is happy to sign when I am signing, then if things go wrong you ask the agent to reduce commission as they have wasted your time, it is after all the agent who is getting paid to handle the communication and transaction for the contract.