Urgent Advice Needed - Liquidated Damages -Property Management

Discussion in 'Legal Issues' started by Kelly88, 31st Jul, 2021.

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  1. Kelly88

    Kelly88 Well-Known Member

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    Dear all
    I'm asking for a friend who is very confusing at the moment. He will talk to the lawyer on Monday, but in the mean time, any inside into this problem will be very much appreciated, thank you.

    Anyway, my friend wanted to change to a new agent in June and approached the new agent, called A. Agent A sent him the Management Authority (MA). My friend signed the MA at the end, proposed to change a few costs, but didn't initialise any of the page in the MA and sent it back to A. A sent emails back the next day and told him that some of the cost changes weren't accepted and asked him to resign the page with the new cost and initialise.

    My friend wasn't happy with the way A was dealing and decided not to go ahead with A. The property wasn't transferred at that time since it was still under the old agent. At that point, my friend didn't even receive the document that A signed.

    After more than 1 month, A sent my friend a bill with more than $7K for liquidated damage. The question is: can A claim the damage if the none of the pages in the document was initialised at the end as required by bottom of the page? Also, my friend never received the copy that A signed, as they were still negotiating some of the fee.

    Thank you

    Kelly
     
  2. JetstreamVic

    JetstreamVic Well-Known Member

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    I would ask them what their liquidated damages are?

    Enforcing a penalty for not choosing them, is not a liquidated damage
     
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  3. Joynz

    Joynz Well-Known Member

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    Can you post a screenshot of the letter sent to your friend by the agent?

    Is it for a property sale or rental?

    Is this in Australia or another country?
     
  4. Noobieboy

    Noobieboy Well-Known Member

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    What are the “damages” for? Makes little sense to me.
     
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  5. Kelly88

    Kelly88 Well-Known Member

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    The letter asked for: "Liquidated damages for wrongful termination of management authority contract". The property is rental and it is in WA.

    As mentioned earlier, my friend didn't initialize any of the pages in MA, the agent wasn't happy with some of the cost, the agent didn't send back the document with the signed signature before my friend decided not to go with them.

    @Terry_w : could you please advice also, thanks.
     
  6. Joynz

    Joynz Well-Known Member

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    Did your friend tell them that s/he had decided not to proceed?

    Does the contract mention liquidated damages?
     
  7. wylie

    wylie Moderator Staff Member

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    @thatbum is in WA I believe. His opinion would be great, as well as @Terry_w .
     
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  8. Kelly88

    Kelly88 Well-Known Member

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    The contract mentions liquidated damages but that page wasn't initialised at the end as required by the document.

    It is a big mess and they are threatening debt collector if the bill is not paid in 7 days.

    I really pray that my friend can get out of this.
     
  9. Joynz

    Joynz Well-Known Member

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    Did your friend inform the agent when s/he decided not to proceed?
     
  10. Kelly88

    Kelly88 Well-Known Member

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    Yes, he did inform the agent that he didn't want to continue. At that point, the agent was still disagree with my friend about one of the fee that he changed. Also, my friend never received a signed copy from the agent.
     
  11. Terry_w

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

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    Sounds like there was an offer which was not accepted
     
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  12. boganfromlogan

    boganfromlogan Well-Known Member

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    This sounds like a bullying tactic from an agent that would indicate aggressive behaviour outside normal practice.

    This might have more too it?

    In any case this type of American style litigation/bullying is designed to threaten and bully. Not necessarily to protect rights like normal.

    I was always told to stand up to bullying. If I was.ur friend I would be reporting the behaviour and maybe publicise it.

    Opinion only..... no legal advice ( no quals either).
     
  13. qak

    qak Well-Known Member

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    Apart from the issue of the non-agreement - how the heck was $7K calculated for one month?

    Edit - you really need to read what your friend actually DID sign, and probably call whoever regulates real estate agents in that state.
     
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  14. Kelly88

    Kelly88 Well-Known Member

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    Anyone knows who we should contact in WA ?

    What is the best way to get out of this mess ?

    Thanks
     
    Last edited: 31st Jul, 2021
  15. Terry_w

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

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    Depends in relation to what.

    If you want legal advice only a lawyer is appropriate.
     
  16. Scott No Mates

    Scott No Mates Well-Known Member

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    Fair Trading manages Real Estate Licensing in WA.
     
    Last edited by a moderator: 31st Jul, 2021
  17. Kelly88

    Kelly88 Well-Known Member

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    @Terry: is there any lawyer in the forum that we can ask for the opinion ? Thanks.
     
  18. Kelly88

    Kelly88 Well-Known Member

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    We told the agent many time last month that the MA was incomplete, but they just ignored our messages. 4 weeks later, they sent the 7K bill, and still ignore the messages that the MA was imcompled before the cancellation.

    What happen if they decide to go ahead wirh debr collector ?

    Thanks
     
  19. Terry_w

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

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    i am not sure
     
  20. Scott No Mates

    Scott No Mates Well-Known Member

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    In the first instance, they need proof of debt and a judgement against you. Debt collectors must operate within the law.
     
    Last edited by a moderator: 31st Jul, 2021
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