Weird behaviour of Seller's agent - Seeking advise with similar experience, please

Discussion in 'The Buying & Selling Process' started by SydneyInvestor, 29th Jul, 2017.

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  1. SydneyInvestor

    SydneyInvestor Well-Known Member

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    Hi All, I am in A SITUATION and really seeking some view point from my PC friends. So the story goes like :

    I am in the middle of a contract of a property. The contract was cancelled after some issues were found during B&P demanding roof restoration, repair of water damage and cracking in ceiling sheets, drainage surface installation and fence replacement along with some other minor issues. The seller's agent agreed to fix the big 4 things and negotiated the price from $412k to $400k. Now the discussions went for a couple of days and he kept on saying that there are other people showing interests but just because we are already in discussion so want you to buy. As, I was still interested because of the property location we had a new contract on $400k.

    After the new contract and expiry of cooling off period, the behaviour of Seller's agent looks a bit suspicious and giving me not so good feeling as if I am getting into some bad deal. Reasons :

    1. Even after asking him a couple of times, he is not giving a clear answer on when the repair works will be completed. I need to organise "After Repair Inspection" to be completed before settlement. But from him it seems seller is still looking at repair quotes with settlement due on 17th August.
    2. He is very reluctant for my property manager to visit the house even after contract goes unconditional in a week or so. Although it is mentioned in contract that we can click pictures and put it up for rental advertising after it goes unconditional. He is making excuses that better to visit once all repairs are done.
    3. He does not return calls nor is very responsive to queries via email.

    With the above things and his willingness to continue the deal with me even though I asked him to fix the things and drop the price is getting me to a bit of thinking if there could be some serious issues in property which he is trying to hide and B&P could not uncover.

    Sorry for the long write-up but any similar experiences or advise in my condition would be really appreciated. Forgot to add that I had the contract without seeing the property as it is interstate.

    Thanks in advance!
     
  2. Rich2011

    Rich2011 Well-Known Member

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    As, I was still interested because of the property location we had a new contract on $400k.

    Which state is the property in? Did you complete a new contract for 400k?
     
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  3. Chattyboy

    Chattyboy Well-Known Member

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    My experience has told me the following:

    1) Never buy site unseen. Even i had to spend a flight ticket costs a few hundred bucks. otherwise, it would cost you more headache than few hundred dollars in the long run if you do need to fix other issues
    2) Unrepsonsive selling agent indicates some possible issues which has not been disclosed (not saying it will happen in your case, but high possibility)
    3) Is the price drop of 12k sufficient for the repairs? Since i dont know the severity of the damages are, so cant really justify of whether the price drop is reasonable.
    4) how much cheaper in relative to the similar ones in the suburb? otherwise, you can purchase another one instead , as i am sure there are so many other properties for sale anyway.

    5) What does it say in the contract if the repairs are not fixed by the settlement date?
    You need to consult with your solicitor
     
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  4. SydneyInvestor

    SydneyInvestor Well-Known Member

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    Thanks @Richard . Property is in QLD (MBRC).
    Yes completed a new contract but with same settlement date as he was confident that he would be able to help seller in finishing the repairs quickly as she is old. But now he says she might be looking to repair with her own people and looking at quotes.
     
    Last edited: 29th Jul, 2017
  5. SydneyInvestor

    SydneyInvestor Well-Known Member

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    Thanks mate!
    If I look at the similar aged and located property in same region, this may be of same price or may be $5-7k expensive but I am more sort of interested because of the proximity to transport and shopping centres. Had been looking for 2 months but was nt able to find a good one. Hence went ahead with the deal.

    5) What does it say in the contract if the repairs are not fixed by the settlement date?
    It just says that the buyer may request an extension of settlement date of 7 days without penalty to allow seller to rectify the issues.

    Main concern is that apart from the issues which he is repairing, there could be some major things he might try to hide by trying to not give access to Property Manager untill settlement and avoiding much communication.

    As per contract, I can't say anything to solicitor because avoiding communication or showing intentions not to give access is not against contract at the moment. Once it goes unconditional and he still creates issues to access might be raised to Solicitor then.
     
  6. Scott No Mates

    Scott No Mates Well-Known Member

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    So in essence, agent has done nothing to date.

    Are the 4 big items on the agent's list the same as yours?
     
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  7. SydneyInvestor

    SydneyInvestor Well-Known Member

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    Yes and added to the contract as well.
     
  8. Scott No Mates

    Scott No Mates Well-Known Member

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    Just keep delaying settlement until they are able to complete the contracted works to your satisfaction (after your solicitor has written to the vendor's solicitor).
     
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  9. SydneyInvestor

    SydneyInvestor Well-Known Member

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    Thanks Scott! But can I take any other steps to uncover if there are any other hidden issues apart from these 4. What other issues people might have seen during their investment journey which were not uncovered in B&P?

    Any additional inspection suggested like asbestos etc? Not that I am sure if I can cancel contract on the basis of any other issue if find in new inspection.
     
  10. S.T

    S.T Well-Known Member

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    Do you have the repair of the big 4 things written into the new contract?
     
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  11. SydneyInvestor

    SydneyInvestor Well-Known Member

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    Thanks @S.T , yes
     
  12. TMNT

    TMNT Well-Known Member

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    Yep. If the agent is being slack either due to incompetence or you aren't important enough or is hiding something.

    Refuse to settle and extend and extend and extend

    Eventually the seller will get fed up and either do it or pull out.

    Be firm. Don't believe anything the agent says unless it's in writing or you have evidence.

    Or you can even threaten to withdraw via an email. "Unless you get access to the property by Friday 5pm, you will recind the contract"

    The response will show how serious the agent is or is hiding anything
     
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  13. SydneyInvestor

    SydneyInvestor Well-Known Member

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    Thanks @TMNT
    Yes, I believe it is important for the property manager to have a look now. Will wait for it to go unconditional and then see, how the agent behaves. He would have to let the PM in to have a look. That will give a better picture of what is happening in there.
     
  14. Antoni0

    Antoni0 Well-Known Member

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    In a practical sense the first mistake was to accept the repairs from the agent. I would have made them drop the price and done the repairs with my own contractors. At least you would have peace of mind that they have been done right.

    One would have thought, If he knew he could have obtained a higher price for the property originally he would have done the repairs in the first place. It's sounding like a second hand car salesperson where you only get a patch job that lasts just over the warranty period. I think you're best to seek legal advice.
     
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  15. TMNT

    TMNT Well-Known Member

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    Wait! Let it go unconditional!

    Why would you wait for that.
    Once it's unconditional it's unconditional
     
  16. wylie

    wylie Moderator Staff Member

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    In Queensland you cannot just delay settlement. There are repercussions.
     
  17. SydneyInvestor

    SydneyInvestor Well-Known Member

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    Thanks @Antoni0 , Actually I am not that experienced investor and managing a project from Interstate did n't look a good option. As per legal advice, don't really know what to ask solicitor as the agent is not doing anything against contracts. Its only his actions making things suspicious here....Not sure, if I can force him to let me PM enter and inspect without contract going unconditional as it is mentioned in the contract
     
  18. SydneyInvestor

    SydneyInvestor Well-Known Member

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    @TMNT As mentioned in the contract, PM can inspect and then advertise for rent only once it is unconditional. Can I force the agent to let the PM inspect prior to it being unconditional as well.
     
  19. SydneyInvestor

    SydneyInvestor Well-Known Member

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    Thanks @wylie Can someone come out of contract before it goes unconditional but sellers solicitor is aware that finance has been approved.
     
  20. wylie

    wylie Moderator Staff Member

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    I'm sorry to say I got a bit lost in the story. Do you have a solicitor acting for you? You need to speak with that person.