settlement Rubbish left behind

Discussion in 'Legal Issues' started by Elives, 2nd Jan, 2017.

Join Australia's most dynamic and respected property investment community
Tags:
  1. TMNT

    TMNT Well-Known Member

    Joined:
    23rd Jul, 2015
    Posts:
    5,572
    Location:
    Melbourne
    hmmm why wouldnt just take $15k off the selling price? or an agreed cleanup cost?
     
  2. JenW

    JenW Well-Known Member

    Joined:
    19th Jun, 2015
    Posts:
    422
    Location:
    Perth, WA
    Because it's not about the money, it's about the inconvenience. We were happy to pay the price we did; what we didn't want to do was have to get rid of a whole heap of cr@p inside or outside after they move out. This way there is an incentive for them to clear it all out before moving, and they actually are slowly working through it all. As for an agreed clean up cost, none of us could really estimate how much it would cost - we just knew it would be a lot, given the amount and nature of stuff that's been stored there. We all figured 15K would cover it.
     
    Perthguy and Marg4000 like this.
  3. DaveM

    DaveM Well-Known Member

    Joined:
    14th Jun, 2015
    Posts:
    3,761
    Location:
    Adelaide & Sydney
    If a property is full of rubbish during the inspection, I have it written into contract as a special condition that the vendor is to remove, at their cost, all rubbish, personal effects and debris in or surrounding the property and yard prior to settlement.

    I always do a pre settlement inspection in the morning for my clients and will advise conveyancer prior to 10am if it is OK to proceed to settlement or to delay.
     
  4. jim1964

    jim1964 1941

    Joined:
    18th Jun, 2015
    Posts:
    1,298
    Location:
    Westcoster Strahan Tasmania
    I write into any contract as above,and im not afraid to exercise the clause either.You still hold the Aces at this stage.
     
  5. Agent30yrs.

    Agent30yrs. Well-Known Member

    Joined:
    19th Jun, 2015
    Posts:
    295
    Location:
    Brisbane
    @Elives she is right. Under the standard contract your stuffed. I'm putting clauses that cover cleaning, debris, pre settlement inspection etc in all my contracts now . Had a hoarder cost me a $3m deal about 15 years ago :(
     
    Perthguy likes this.
  6. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

    Joined:
    18th Jun, 2015
    Posts:
    23,319
    Location:
    Sydney
    My mate was buying a property and he had this concern when he inspected the day prior. Lawyers advised vendors lawyers they would retain $2k and warned vendor to remove rubbish. He didnt. Turned up on day after settlement to clean up and was denied entry and then realised his error. Expensive lesson.
     
    Perthguy likes this.
  7. Luke T

    Luke T Well-Known Member

    Joined:
    12th Dec, 2015
    Posts:
    358
    Location:
    Straya
    on the day of settllement if you discover they have not cleaned the place up;
    you can offer the seller to remove all the rubbish within a time period (i often give an extra 24 hours after settllement ) and hold back an amount that you believe is fair prior to settlelement to cover the cost .If they dont clean it up within the time you get to keep the money.I do this regularly after asking the agent to make sure it is left clean ;sellers generally dont leave things as clean as you may expect.
     
  8. dabbler

    dabbler Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    8,572
    Location:
    Sid en e - olympic city
    Hi Elives,

    Rubbish is something that needs to be in the contract, same with appliances that no longer work at settlement.

    BUT, if the place has personal belongings and furniture in the living space, you can delay settlement if a lot (as is not vacant if you purchased as vacant possession) but would likely be better to hold money and settle if just a few rubbish items left in the living space.

    Either way I would be asking for them to clean up or foot the bill, but yes, if you got $500, that is 500 they could have denied.
     
  9. Perthguy

    Perthguy Well-Known Member

    Joined:
    22nd Jun, 2015
    Posts:
    11,767
    Location:
    Perth
    Just make sure your contract allows for this. In WA a standard contract does not allow a buyer to hold back funds at settlement. I had a buyer threaten this once and I instructed my settlement agent not to settle if funds were held back. I also told my rea to tell the buyer I would sue the buyer for breach of contract :)
     
  10. Luke T

    Luke T Well-Known Member

    Joined:
    12th Dec, 2015
    Posts:
    358
    Location:
    Straya
    My solicitors in qld and nsw have always been able to do this last minute so possibly WA is diffrerent am not sure
     
  11. MTR

    MTR Well-Known Member

    Joined:
    19th Jun, 2015
    Posts:
    27,786
    Location:
    My World

    The old rubbish trick, I know this one well. Correct, if its not in the contract you don't have a leg to stand on.

    Some years ago I purchased in Melb and the re agent/property manager acted on my behalf did not bother checking the garage which was full of rubbish. I held them accountable and they paid for the removal of the rubbish which was around $400 at the time.

    $2000 in your case is massive amount of rubbish, is it a full house ??