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Vendor still moving out of house at post-settlement showing

Discussion in 'The Buying & Selling Process' started by Fortune Favors the Bold, 14th Jun, 2016.

  1. Fortune Favors the Bold

    Fortune Favors the Bold Well-Known Member

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    Today at noon I settled on the house I recently purchased.

    I am currently overseas and have employed a buyer-advocate/property-manager to lease it out. The first showing was at 5 PM this evening, and the property manager just reported back to me that when he arrived the vendor was still in the house and in the process of moving out, and that she explained to the property manager that she removalists were supposed to show up in the morning but were late, and that's why she was still there. Has anyone here every heard of anything like this before? What would you do in my shoes?

    What an absolutely bizarre situation.
     
  2. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    Normally you would not settle unless they were out. They have the upperhand now.

    Be nice and hope they leave.
     
  3. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    BTW which bank did you go with?
     
  4. Fortune Favors the Bold

    Fortune Favors the Bold Well-Known Member

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    Hmmm.... so, given that I am overseas, that the property was purchased through and is being managed by a well-known Melbourne buyer advocate, and that settlement was done through a solicitor, whose responsibility was it to ensure that the vendor was physically out of the property prior to settlement?

    ANZ
     
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  5. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    Your responsibility.

    You should have confirmed you had vacant possession before settlement - or instructed your solicitor to confirm.
     
  6. GoOnAndTell

    GoOnAndTell Well-Known Member

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    yer i trust no one on this stuff anymore, we had an owner try and hang around saying he was planning on staying one extra day so he could move as they where 'simultaneously settling'. I called my solicitor and said he either puts up a $5k bond or we delay settlement until we can confirm vacant.

    Whilst it will probably work out and it is just a weird thing that some people think is acceptable because 'its their house still' i wasn't willing to take that chance.
     
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  7. Fortune Favors the Bold

    Fortune Favors the Bold Well-Known Member

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    Right. FFS though.... surely it's reasonable to expect the buyer advocate / property manager, who has managed the entire process, and the solicitor they recommended, to have avoided this? Honestly, the number one lesson I've learned throughout this entire process is that you really can't trust anyone to do a decent job, even if you're paying them a heck of a lot to do it. Really, really disappointing...

    Yes. Well, I guess we're learning this the hard way. I never would expected the vendor to pull something like this, nor would I have expected the buyer-advocate / property-manager and solicitor to let it happen. I trusted that they were doing the job thoroughly and completely. I was wrong. What a crock....
     
  8. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    I don't know the details of your contracts with buyers agents and solicitors, but usually you would do a final inspection before settlement and if the vendor had not moved out then this would start alarm bells.

    What will you do if they don't leave!
     
  9. Fortune Favors the Bold

    Fortune Favors the Bold Well-Known Member

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    The buyer-advocate / property-manager did an inspection last week and the vendor was in the process of moving out. We all expected, reasonably I felt at the time, that the vendor would have moved out completely over the long weekend. Clearly that didn't happen. In this case I feel that the fault is shared between myself for not confirming with the agent/manager and the solicitor, as well as the agent/manager and solicitor who I had trusted to do the job thoroughly and identify any red flags, which they clearly failed to do.

    What will I do if they don't leave? Well, I really don't expect it to come to that, but I supposed I'd have to investigate legal action...
     
  10. No Probs

    No Probs Well-Known Member

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    I've purchased two properties and never done a presettlement inspection, didn't even know it was a thing! lucky I haven't been caught out like this! Surely 99 times out of 100 you won't have an issue.
     
  11. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    Normally you would aim to do the inspection as close to settlement as possible. I had a client do one recently in the morning of settlement.

    Too soon and damage could occur before settlement - but too late and there may not be time for issues to be resolved - left junk etc.
     
  12. Fortune Favors the Bold

    Fortune Favors the Bold Well-Known Member

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    Yes. That all makes perfect sense. I guess I just put too much trust in the buyer-advocate/property-manager to guide the process expertly and avoid such a situation. I won't make the same mistake again.
     
  13. neK

    neK Well-Known Member

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    I'd put this one on the Buyers Advocate.
    In my opinion, they should be acting on your behalf until settlement... which means checking the property prior to settlement.
     
  14. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    Who can you blame for this one? I don't know.

    Sounds like this is your first property so it would be a new experience. Solicitors don't do inspections so they don't know whether the property is vacant or not. You are the purchaser so you have the opportunity to do an inspection. You would then find any issues such as scratches on the floor that weren't there before, stoves not working, rubbish left - or people still there. once you have found these issues you would tell the solicitor who would give you advice.

    But you delegated this job to a BA. They may have told you about the tenant still being there, but the implications may not have been know to you.
     
  15. Ouga

    Ouga Well-Known Member

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    "Trying is the first step towards failure" Homer
    I would definitely think the buyers advocate would be handling this, especially given they know you are unable to visit the property yourself, being overseas.
    Have done pre-settlement inspections the day before usually. Our solicitor prompted us for it and advised we checked all items including keys etc.

    I think because you went with their solicitor perhaps they were not as thorough as if you had had a more independent (your own) one.
     
  16. Fortune Favors the Bold

    Fortune Favors the Bold Well-Known Member

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    It was actually part of the written agreement with the BA, that they would do the final pre-settlement inspection and would manage the process from purchase through settlement through rental. They should have done the inspection the morning of settlement, rather than last week, and should have informed us and the solicitor that the vendor had not vacated the house as required in the contract.
     
    Last edited: 15th Jun, 2016
  17. sanj

    sanj Well-Known Member

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    if that's the case then i agree, they have not done their job properly. ultimately mistake do happen and things get overlooked but id be looking for an explanation of what and how this occurred.
     
  18. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    Sounds like it. Did they mention the tenant was still in there?
     
  19. Greyghost

    Greyghost Well-Known Member

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    Exactly, should have been vacant and final inspection done pre settlement to ensure property was ready to settle.
     
  20. Greyghost

    Greyghost Well-Known Member

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    The solicitor is not in bed with the BA?
    I would be getting the solicitor to review the terms of the contract you signed with the BA and take it up with them.
    In the interim I would be kind to the former vendor/tenant and work with them to get them out ASAP.