Selling my IP vacant possession, tenant doesn't want to leave, buyer wants to take me to QCAT

Hi all,

I'm currently in a situation where I sold my IP but settlement didn't happen yet.

Settlement was supposed to happen last week but couldn't happen because the contract says I have to provide the property in vacant possession and the tenant doesn't want to leave.

He stopped paying rent 2 months ago when we told him that he had to leave by settlement.
We started the legal process to kick the tenant out but it will take another month if everything goes OK with the Tribunal Hearing.

I had to ask for an extension where the buyer requested to be paid a fixed amount for each week until settlement.

When I tried to negotiate they said that's what they want other wise they will go to QCAT to request the full expenses and since the husband is tradie and was planning to do the reno on the new house, he stopped getting new jobs and caused him losses because the settlement didn't happen. They said they will be able to claim for about $35K in losses.

I'm interested in selling the property but I feel I have no other choice than agreeing with the buyer terms and hope that tribunal kick the tenant out before the next extension finishes.

The solicitor told me that I have no choice since the contract says we need to provide the house in vacant possession and about the legal actions I should check with other types of solicitors.

My biggest concern is what happens if the Tribunal hearing decides the tenant can stay for longer or something like that.

Is there anything I could do to to prevent or minimise any legal actions the buyer could take against me?

Thanks

 

Moral of the story is don't make promises you can't keep

Happy to be corrected, but I don't think he'll be able to claim business losses in such a scenario because they're impossible to quantify. The rest sounds about right now.

The tribunal won't say the tenant can stay longer, as long as all the appropriate notices were sent correctly and on time.

 

what did your 'other types of solicitors' say?

 

Like the ones the Queen uses ? Or just old ones - Called Senior Counsels.

 

Why has it taken so long to get a hearing at QCAT for breach of lease?

Was the appropriate notice served on the tenant?

What is your property manager doing about it?

What does your contract say about penalties on the vendor? Did you agree to something different to what was the standard clause? What did your solicitor advise?

 

Can we sue the tenant?

 

Tribunal can impose damages. But....Good luck with enforcing it.
And a LL insurer may not cover it in all cases. If its a clear case of unpaid rent - perhaps. But if the eviction was not lawful...? And for losses regarding the sale ? Doubtful but depends.

 

Sure. Isn't that what you are doing now?

 

Me? Now? Why?
I am always very selective of my stocks, in turn, I can be selective with my tenant, but I serve them well so not yet having that issue yet.

Just checking just in case it may happen in the future. It is a real question to learn.

 

I thought you were taking the tenant to the tribunal.

 

@Terry_w
@Jat is the one wanting to get tenant out.
@iloveqld is simply hijacking the thread and asking their questions

 

Oh, thanks nek
iloveqld you ask a question out of nowhere "Can we sue the tenant?" with no reference. Sue for what?

 

Can we pay the buyers and sue for the damage we paid the buyer?

 

Thanks neK
I feel I got a cranky old pal not want to help just to bark

 

Are you Jat posting under a different name?

 

No time for that, @Terry_w and I remember I clicked like on your posts a lot so dont be cranky with me.

Just honestly why investor like us need to bear all the cost and can’t claim back the damage we got from someone else?

 

I am not cranky - but i cannot see where you have explained your situation. I have no idea what is going on!

 

Not sure why it takes that long, this is the first time I have this issue in QLD but my PM has been very proactive from the beginning and followed all the legal steps. Christmas period was in between I'm sure that didn't help us with the times either.

The contract doesn't say nothing about penalties on the vendor. The only special clause is that requires vacant possession.

Thanks

 

I could, but he doesn't have much from what I understand. I checked with the PM and apparently doesn't have a Car and he may not even have a job. He always paid the rent though, except from 2 months ago when we told him he had to leave. When I bought the property about 5 years ago he was living there already that's why we have that tenant.

 

I couldn't reach any other solicitor to assist me with this yet. Honestly not sure if it will be worth it to try to sue the tenant. But my biggest concern is if the buyer can take legal actions against me because the tenant is not leaving.

Thanks