Unconditionally Conditional !!??
Jul 25th 2007, 7:52 am
#1
Banned
Thread Starter
Joined: Jan 2004
Location: Morayfield - The Posh Part
Posts: 10,138
Unconditionally Conditional !!??
Gday folks,
Sorry if this is in the incorrect part of the forum, but seemed like an apt place to plonk it.. so here goes
A true Story !
It could happen to you....
Some of us, well certainly those that have been in Australia, under say 3-5 years... might not have ever sold a house yet, some indeed may never have purchased one, but to those that have sold, the Aussie system, of selling homes, and certainly buying a new home.. may seem extremely cool.
That may have something to do with the Australian system, of making an offer.
I know we have spoken about this subject on many many occasions, and obviously, the slack crappy system, in the Uk, and the mention of the ultra cool sealed bid system in Scotland has also been discussed.
You see in Australia, the system is supposedly safe simple and quick.
Safe.
Because, when a purchaser makes an offer, in general, this must be done as part of a contract, and in writing. So you dont go round making offers willy nilly on all the houses that take your fancy.
Simple.
Instead of being ( pissed ) about with by several buyers, and window shoppers, this system of buying and selling streamlines the entire exchange system, and seems to make life , oh so much sweeter.
Quick.
If a buyers finance is in place, and they have had necessary inspections carried out, then really you could be gone in a couple of weeks, a month is very common.
-----------------------------------------------------
This works, because of the Australian System. Now please dont be offended if you read this and you are somewhat of a smart arse, and have noticed immediate flaws in the advice or opinions shown, this is a simple explanation of how a simple ex-pom see's the system, and his experience of it.
The Aussie system, for buying a home, is straightforward.
You see a house, you like it, you think you can afford it. So you make an offer. This is done with the agent, generally at their offices, and in writing.
The offer is then presented to the Seller, who then has a certain time within which to accept or reject this offer.
If they accept, then the ball starts rolling. There is usually a stipulation that as a buyer, you have say: 14 days to prove finaces are in place, also to have done a Building and Pest report. This will possibly change from state to state, however I live in QLD , and this is generally how it applies here.
OK, as a buyer, you have had your little man with his ute out, and he has checked for termites ( usually tapping the walls ) and he has looked around your yard, emptied his Esky and had a few durries.
The building inspector, normally an affable chap, carries a clipboard a torch and a ladder. He generally has a good look around, and checks for damp, looks in your roof space, and pops some grout off your shower wall !
Then your Bank, they may have come back to you, with an in Principle decision, and pending final written approval of your mortgage....
The 14 day period is looming, however all is good, and the 3 peeps involved in the future of your new home, have all supplied their reports. Generally speaking, the mortgage company has no interest if your home has severe engineering defects and termite ridden floor joists. They in my opinion, work purely off their valuers report, which basically looks at the general state and livibility of the home, and the median house price index for your suburb or locale.. this obviously hasnt included the entire valuation and banking system, but in my opinion this is what seems to be the case, from experience.
Ok all is good, you head back to the agent ( as the BUYER ) and you give them your info.. your solicitor is obviously involved, and is making sure everything else is in order... they confirm to the agent in writing ( for some reason this is always at 5pm of the day of deadline !!! )
It can swing both ways.
The result via your agent, is that you havent supplied all info in the necessary time frame, and that do you wish to ask for an extension of time, to provide the details as you were supposed to have done.. Obviously if you are in a strong position and its just formalities, you agree, and the seller recognises its just a hiccup, and also agrees..
FInally, you get the confirmation.. the house has gone UNCONDITIONAL !
The abbracaddabra of the house selling world, the one word that you only ever want to hear as a seller, and as a buyer ( moreso as a seller )
What is Unconditional.
Well, insofar as I am aware, it is the legal state the purchase of the home is at, ie: the home sale/purchase is free from conditions, and the contract has reached an unconditional point, where neither the seller or buyer can pull out of the sale, for fear of HUGE legal repurcushions. From this point on its plain sailing.. all that remains is the arrival of completion date....
Now after all that.. heres where my story starts.
I will be as brief as possible.
Feb 2006, we decided we wanted to build a new house. I wont go into the reasons, but it was more than pure self indulgence, and was a necessity. We ventured to the north side, and after seeing about 100 blocks of land, decided we wanted to purchase a beaut block we had seen.
So we held our heads, and came home, sat and did the sums.
Ok we decided we could afford current commitments, and also the purchase of the new land. We worked thru all of the permutations, and figured, ok we will not commit to the land until we have a offer on our home.
I mean FGS you never know what may happen.
A bit of wheeler dealing with the owner of the land, and he agreed to our terms, in fact it was mutually beneficial to us all.
Our home went on the market, and ok it was a bit slow. But we held good, and waited and waited.
Meanwhile, we had chosen the builder we wanted for the construction of our new home. Pre-requisites were design, finishes and cost. They really scored A+ on all counts.
Now this is where we have a slight dilemma. House prices were due to increase from August 1st 2006.
Do we bite the bullet and pay them their 10 grand deposit, or hold out in the anticipation, the possible 10k increase in price wont affect us... well not much to worry about, the builder offered us 4 months, fixed price on the entire construction package. A total walk in walk out price, we couldnt resist..
Now dont get excited and say Ahhhh I know where this is going, cos lol you dont..
Read on please...
------------------------------------------
May 2006 , a buyer views our house. Love it, make offer, place a $100 deposit, and the offer is presented to us. Its 5k above actual price, and they have been given finance approval in principle.
We were stoked, get the champers on the go...Debs lit a ciggy up, and manipulated it thru her fingers like Paul Daniels on Speed !
The contract was too good to be true, oh Hark I hear a plethora of old adages springing to mind !!
Finance in place ( ish )
Wants to move in 30 days
Wants to be unconditional within 14 days if not sooner.
Wants to measure for curtains etc etc etc...
Not dependant on the sale of their home, due to high equity, savings and a shit hot finance whizz..
We accepted the contract, and now began the 14 day countdown.
2 days before the "unconditional" bit, we spoke with our agent, who said yep its all good.. etc etc etc.. we spoke with our conveyancer ( shes awesome by the way , cleveland way if you want her details let me know ) , she reiterated that nothing is definite until the 14 days, and the home goes Conditional.. we pinched ourselves, and held firm.. waiting is horrible !!
The day of Unconditionalityinism !!!!!
Bad news.. solicitor foned us, at 5pm, sorry Guys, but their bank hasnt come thru, but their finance guy has said its all good, just awaiting a signature, and they can do inter solicitor faxing, and notify everyone.
He added he was going away for a few days, in Sydney, on business, and secretary would sort it...
YER RITE MATE !
a week went by... now ya see legally under contract unless you have a sunshine clause you cannot, show other prospective purchasers the home, so really at the beck n call of your own stupidity, faith and reliance on other people telling you the truth.
.... I really wont bore you with all this crap.. but another 4 weeks elapse !! yes 4 !! so thats 5 extensions of time.
We get the news, Guys.. are you sitting down?? .. erm yeah why?? Its gon UNCONDITIONAL !!
Well we were flabberghasted, and everyone was so excited, we were all friends again, hackles had disappeared, and the world was good , especially Australia.
So.. next day, out we went, placed offer on Land in writing, deposited up, and also with the builder, and deposited him up.. so its all good..
We also, spoke with the agent, the new owners want us out in 2 weeks, so we find a big rental for us, kids and dogs.. and strike a deal with the chick who owns it, she turned out to be one of Australias coolest people.
The day before settlement and exchange.
We move out, we have to, I mean we cant stay in the house, we have to be out by tomorrow, this is the Australian System. JUst to keep our wits about us, we phone agent and solicitor, its all good, just awaiting final sums, will do paperwork, and settlement is booked in for tomorrow at 4pm.
Into the rental we go, hi ho hi ho hi hohohohohoo ho !!
Oh POO !
The very next day, things kinda go pear shaped... the banks dont indeed transfer money, and we hear excuse after excuse..
Now this is also where im gonna cut the story SHORTER
This goes on for a further 10 WEEKS !!!!!!!!!!!
.................................................. ......................
4 weeks after being in the rental, we have heard every single excuse as to why a house hasnt settled. We are getting worried..
If you remember at the beginning, I mentioned we did budgets and cost forecasts, well yer, but we hadnt done that on the basis of paying $320 a week in rent , aswell as mortgage on house, aswell as purchase of land...
Oh dear, we really are getting in the shit...
A meeting is arranged, not at my request but at my LEGAL I WILL SUE UR FAT LYING ASS OFF , kinda nice way to ask i suppose !
I had formally , in writing at this time, told the agent, the buyer, the buyers financial guy and the buyers bank, I was gonna sue them.
The meeting went well, apart from the odd bullshit, we encountered, this would have been between the time of arriving and leaving.
It transpired, that the bank, 24 hrs after going unconditional, revoked the finance request for the buyer, and refused them finance on the grounds of severe arrears on current home, lack of savings for deposit, and they had 2 outstanding judgments on them from the Council for fraudulently claiming incapacity benefits.
Oh golly gosh !!
That doesnt sound good hey..
No worries, F***IT i said, Im gonna keep their $100 deposit, ( ALL THAT HAD BEEN PAID INCIDENTALLY ) and go and get pissed, and drive myself off a bridge !!
You see they never got round to paying the balance of their deposit, some $12k !! Ho Hum !! We were stuck in a legal paradox, a Unconditional Conditional contract !!
--------------------------------------------------------
6 weeks later, the house finally settled, and we were awarded 10k in compensation, which was paid, by menas of extended mortgage by the buyer.
--------------------------------------------------------
So anyways, the moral of this story.. is Unconditional contract means nothing, really, ok it does, but it can be gotten around. And dont think for one moment all is good , because you can sue them.. that can take years, and you cant sue someone who doesnt have anything...
There is a thing called CAVEAT . i am not really sure what it means, but its basically laying claim against someone and their property for moneys outstanding, thereby giving you a bite at the proverbial cherry should they ever sell, in some circumstances a person can be made to sell their goods to settle a caveat, however having spoken with several legal people, they had never known this to happen in QLD.
My Advice is simple ( and trust me, we still think we did everything right )
Accept a $100 deposit for a written offer on your home, but then accept it on the basis that the buyer, comits to paying a certain % addittionally when the contract goes unconditional.
I would further make it pre-requisite that should sale fall thru, then the deposits paid are totally non refundable.
Again, how you could work this in practice beats me, cos unlike most Aussies, most of us on here have sold homes in the UK, and are used to frustration and being let down, even at the n'th hour.
Anyways, thats my little story, hope you enjoyed it... its certainly more fun recalling it all from memory, than experiencing it first hand !!
Steve
Sorry if this is in the incorrect part of the forum, but seemed like an apt place to plonk it.. so here goes
A true Story !
It could happen to you....
Some of us, well certainly those that have been in Australia, under say 3-5 years... might not have ever sold a house yet, some indeed may never have purchased one, but to those that have sold, the Aussie system, of selling homes, and certainly buying a new home.. may seem extremely cool.
That may have something to do with the Australian system, of making an offer.
I know we have spoken about this subject on many many occasions, and obviously, the slack crappy system, in the Uk, and the mention of the ultra cool sealed bid system in Scotland has also been discussed.
You see in Australia, the system is supposedly safe simple and quick.
Safe.
Because, when a purchaser makes an offer, in general, this must be done as part of a contract, and in writing. So you dont go round making offers willy nilly on all the houses that take your fancy.
Simple.
Instead of being ( pissed ) about with by several buyers, and window shoppers, this system of buying and selling streamlines the entire exchange system, and seems to make life , oh so much sweeter.
Quick.
If a buyers finance is in place, and they have had necessary inspections carried out, then really you could be gone in a couple of weeks, a month is very common.
-----------------------------------------------------
This works, because of the Australian System. Now please dont be offended if you read this and you are somewhat of a smart arse, and have noticed immediate flaws in the advice or opinions shown, this is a simple explanation of how a simple ex-pom see's the system, and his experience of it.
The Aussie system, for buying a home, is straightforward.
You see a house, you like it, you think you can afford it. So you make an offer. This is done with the agent, generally at their offices, and in writing.
The offer is then presented to the Seller, who then has a certain time within which to accept or reject this offer.
If they accept, then the ball starts rolling. There is usually a stipulation that as a buyer, you have say: 14 days to prove finaces are in place, also to have done a Building and Pest report. This will possibly change from state to state, however I live in QLD , and this is generally how it applies here.
OK, as a buyer, you have had your little man with his ute out, and he has checked for termites ( usually tapping the walls ) and he has looked around your yard, emptied his Esky and had a few durries.
The building inspector, normally an affable chap, carries a clipboard a torch and a ladder. He generally has a good look around, and checks for damp, looks in your roof space, and pops some grout off your shower wall !
Then your Bank, they may have come back to you, with an in Principle decision, and pending final written approval of your mortgage....
The 14 day period is looming, however all is good, and the 3 peeps involved in the future of your new home, have all supplied their reports. Generally speaking, the mortgage company has no interest if your home has severe engineering defects and termite ridden floor joists. They in my opinion, work purely off their valuers report, which basically looks at the general state and livibility of the home, and the median house price index for your suburb or locale.. this obviously hasnt included the entire valuation and banking system, but in my opinion this is what seems to be the case, from experience.
Ok all is good, you head back to the agent ( as the BUYER ) and you give them your info.. your solicitor is obviously involved, and is making sure everything else is in order... they confirm to the agent in writing ( for some reason this is always at 5pm of the day of deadline !!! )
It can swing both ways.
The result via your agent, is that you havent supplied all info in the necessary time frame, and that do you wish to ask for an extension of time, to provide the details as you were supposed to have done.. Obviously if you are in a strong position and its just formalities, you agree, and the seller recognises its just a hiccup, and also agrees..
FInally, you get the confirmation.. the house has gone UNCONDITIONAL !
The abbracaddabra of the house selling world, the one word that you only ever want to hear as a seller, and as a buyer ( moreso as a seller )
What is Unconditional.
Well, insofar as I am aware, it is the legal state the purchase of the home is at, ie: the home sale/purchase is free from conditions, and the contract has reached an unconditional point, where neither the seller or buyer can pull out of the sale, for fear of HUGE legal repurcushions. From this point on its plain sailing.. all that remains is the arrival of completion date....
Now after all that.. heres where my story starts.
I will be as brief as possible.
Feb 2006, we decided we wanted to build a new house. I wont go into the reasons, but it was more than pure self indulgence, and was a necessity. We ventured to the north side, and after seeing about 100 blocks of land, decided we wanted to purchase a beaut block we had seen.
So we held our heads, and came home, sat and did the sums.
Ok we decided we could afford current commitments, and also the purchase of the new land. We worked thru all of the permutations, and figured, ok we will not commit to the land until we have a offer on our home.
I mean FGS you never know what may happen.
A bit of wheeler dealing with the owner of the land, and he agreed to our terms, in fact it was mutually beneficial to us all.
Our home went on the market, and ok it was a bit slow. But we held good, and waited and waited.
Meanwhile, we had chosen the builder we wanted for the construction of our new home. Pre-requisites were design, finishes and cost. They really scored A+ on all counts.
Now this is where we have a slight dilemma. House prices were due to increase from August 1st 2006.
Do we bite the bullet and pay them their 10 grand deposit, or hold out in the anticipation, the possible 10k increase in price wont affect us... well not much to worry about, the builder offered us 4 months, fixed price on the entire construction package. A total walk in walk out price, we couldnt resist..
Now dont get excited and say Ahhhh I know where this is going, cos lol you dont..
Read on please...
------------------------------------------
May 2006 , a buyer views our house. Love it, make offer, place a $100 deposit, and the offer is presented to us. Its 5k above actual price, and they have been given finance approval in principle.
We were stoked, get the champers on the go...Debs lit a ciggy up, and manipulated it thru her fingers like Paul Daniels on Speed !
The contract was too good to be true, oh Hark I hear a plethora of old adages springing to mind !!
Finance in place ( ish )
Wants to move in 30 days
Wants to be unconditional within 14 days if not sooner.
Wants to measure for curtains etc etc etc...
Not dependant on the sale of their home, due to high equity, savings and a shit hot finance whizz..
We accepted the contract, and now began the 14 day countdown.
2 days before the "unconditional" bit, we spoke with our agent, who said yep its all good.. etc etc etc.. we spoke with our conveyancer ( shes awesome by the way , cleveland way if you want her details let me know ) , she reiterated that nothing is definite until the 14 days, and the home goes Conditional.. we pinched ourselves, and held firm.. waiting is horrible !!
The day of Unconditionalityinism !!!!!
Bad news.. solicitor foned us, at 5pm, sorry Guys, but their bank hasnt come thru, but their finance guy has said its all good, just awaiting a signature, and they can do inter solicitor faxing, and notify everyone.
He added he was going away for a few days, in Sydney, on business, and secretary would sort it...
YER RITE MATE !
a week went by... now ya see legally under contract unless you have a sunshine clause you cannot, show other prospective purchasers the home, so really at the beck n call of your own stupidity, faith and reliance on other people telling you the truth.
.... I really wont bore you with all this crap.. but another 4 weeks elapse !! yes 4 !! so thats 5 extensions of time.
We get the news, Guys.. are you sitting down?? .. erm yeah why?? Its gon UNCONDITIONAL !!
Well we were flabberghasted, and everyone was so excited, we were all friends again, hackles had disappeared, and the world was good , especially Australia.
So.. next day, out we went, placed offer on Land in writing, deposited up, and also with the builder, and deposited him up.. so its all good..
We also, spoke with the agent, the new owners want us out in 2 weeks, so we find a big rental for us, kids and dogs.. and strike a deal with the chick who owns it, she turned out to be one of Australias coolest people.
The day before settlement and exchange.
We move out, we have to, I mean we cant stay in the house, we have to be out by tomorrow, this is the Australian System. JUst to keep our wits about us, we phone agent and solicitor, its all good, just awaiting final sums, will do paperwork, and settlement is booked in for tomorrow at 4pm.
Into the rental we go, hi ho hi ho hi hohohohohoo ho !!
Oh POO !
The very next day, things kinda go pear shaped... the banks dont indeed transfer money, and we hear excuse after excuse..
Now this is also where im gonna cut the story SHORTER
This goes on for a further 10 WEEKS !!!!!!!!!!!
.................................................. ......................
4 weeks after being in the rental, we have heard every single excuse as to why a house hasnt settled. We are getting worried..
If you remember at the beginning, I mentioned we did budgets and cost forecasts, well yer, but we hadnt done that on the basis of paying $320 a week in rent , aswell as mortgage on house, aswell as purchase of land...
Oh dear, we really are getting in the shit...
A meeting is arranged, not at my request but at my LEGAL I WILL SUE UR FAT LYING ASS OFF , kinda nice way to ask i suppose !
I had formally , in writing at this time, told the agent, the buyer, the buyers financial guy and the buyers bank, I was gonna sue them.
The meeting went well, apart from the odd bullshit, we encountered, this would have been between the time of arriving and leaving.
It transpired, that the bank, 24 hrs after going unconditional, revoked the finance request for the buyer, and refused them finance on the grounds of severe arrears on current home, lack of savings for deposit, and they had 2 outstanding judgments on them from the Council for fraudulently claiming incapacity benefits.
Oh golly gosh !!
That doesnt sound good hey..
No worries, F***IT i said, Im gonna keep their $100 deposit, ( ALL THAT HAD BEEN PAID INCIDENTALLY ) and go and get pissed, and drive myself off a bridge !!
You see they never got round to paying the balance of their deposit, some $12k !! Ho Hum !! We were stuck in a legal paradox, a Unconditional Conditional contract !!
--------------------------------------------------------
6 weeks later, the house finally settled, and we were awarded 10k in compensation, which was paid, by menas of extended mortgage by the buyer.
--------------------------------------------------------
So anyways, the moral of this story.. is Unconditional contract means nothing, really, ok it does, but it can be gotten around. And dont think for one moment all is good , because you can sue them.. that can take years, and you cant sue someone who doesnt have anything...
There is a thing called CAVEAT . i am not really sure what it means, but its basically laying claim against someone and their property for moneys outstanding, thereby giving you a bite at the proverbial cherry should they ever sell, in some circumstances a person can be made to sell their goods to settle a caveat, however having spoken with several legal people, they had never known this to happen in QLD.
My Advice is simple ( and trust me, we still think we did everything right )
Accept a $100 deposit for a written offer on your home, but then accept it on the basis that the buyer, comits to paying a certain % addittionally when the contract goes unconditional.
I would further make it pre-requisite that should sale fall thru, then the deposits paid are totally non refundable.
Again, how you could work this in practice beats me, cos unlike most Aussies, most of us on here have sold homes in the UK, and are used to frustration and being let down, even at the n'th hour.
Anyways, thats my little story, hope you enjoyed it... its certainly more fun recalling it all from memory, than experiencing it first hand !!
Steve
Jul 25th 2007, 9:13 am
#2
Where's my visa?
Joined: Apr 2007
Location: In dreamland
Posts: 267
Re: Unconditionally Conditional !!??
Oh no poor you. Glad it all worked out in the end.Moving to Cleveland area about January i hope, bugger the conveyancer, how do you fancy a new career acting as ours
Where did you end up buying your new plot
Where did you end up buying your new plot
Jul 25th 2007, 9:28 am
#3
Banned
Thread Starter
Joined: Jan 2004
Location: Morayfield - The Posh Part
Posts: 10,138
Re: Unconditionally Conditional !!??
LOL thanks
PLOT is where ya get BURIED
BLOCK is land
Or an alotment pmsl.. i know weird !!
We are northside, Dayboro
PLOT is where ya get BURIED
BLOCK is land
Or an alotment pmsl.. i know weird !!
We are northside, Dayboro
Jul 25th 2007, 9:52 am
#4
BE Forum Addict
Joined: Jun 2007
Location: Essex
Posts: 2,543
Re: Unconditionally Conditional !!??
Good luck with it all.
Jul 25th 2007, 10:21 am
#5
BE Enthusiast
Joined: Mar 2003
Location: Mt Eliza, Mornington Peninsula
Posts: 589
Re: Unconditionally Conditional !!??
[QUOTE=Timber Floor Au;5102769]Gday folks,
So anyways, the moral of this story.. is Unconditional contract means nothing, really, ok it does, but it can be gotten around. And dont think for one moment all is good , because you can sue them.. that can take years, and you cant sue someone who doesnt have anything...
There is a thing called CAVEAT . i am not really sure what it means, but its basically laying claim against someone and their property for moneys outstanding, thereby giving you a bite at the proverbial cherry should they ever sell, in some circumstances a person can be made to sell their goods to settle a caveat, however having spoken with several legal people, they had never known this to happen in QLD.
My Advice is simple ( and trust me, we still think we did everything right )
Accept a $100 deposit for a written offer on your home, but then accept it on the basis that the buyer, comits to paying a certain % addittionally when the contract goes unconditional.
I would further make it pre-requisite that should sale fall thru, then the deposits paid are totally non refundable.
Hi Steve
It sounds bloody awful you did well to survive and hopefully the 10k helped to pay the rental. Now im interested in what you have written as I read an article only the other day in an investment magazine whereby a seller had changed their mind as their buyer was messing them around and needed more time to settle similar to your case. They too (buyers) had only paid $100 deposit. Now apparently if the seller accepted the deposit he would be liable to still pay the agent their commissions. Ill explain more......
I have the article here page 88 Property Investor May 2006 "Under REIQ clause 2 enttitlement to commision the client agreed to pay commission if a contract was signed with a buyer where a relevant person was the efective cause of the sale within 60 day period. The agent had sold the property and was the relevant person. Then came a provisio for the agents right to be paid if the contract of sale is not completed and the whole or part of the deposit paid is liable to be forfeited" In othere wods if a sale settles the agent gets paid and if a sale falls over the agent still gets paid providied the deposit is "liable to be forfeited" Becuase the sale price was more than 300k the commision inc gst was 10k. If a 10% deposit had been paid the seller would have received 20k after paying the agent. This particular buyer was liable for $10k to agent and had only recieved $100 deposit.
A real warning to all buyers and sellers I think.
Irene
So anyways, the moral of this story.. is Unconditional contract means nothing, really, ok it does, but it can be gotten around. And dont think for one moment all is good , because you can sue them.. that can take years, and you cant sue someone who doesnt have anything...
There is a thing called CAVEAT . i am not really sure what it means, but its basically laying claim against someone and their property for moneys outstanding, thereby giving you a bite at the proverbial cherry should they ever sell, in some circumstances a person can be made to sell their goods to settle a caveat, however having spoken with several legal people, they had never known this to happen in QLD.
My Advice is simple ( and trust me, we still think we did everything right )
Accept a $100 deposit for a written offer on your home, but then accept it on the basis that the buyer, comits to paying a certain % addittionally when the contract goes unconditional.
I would further make it pre-requisite that should sale fall thru, then the deposits paid are totally non refundable.
Hi Steve
It sounds bloody awful you did well to survive and hopefully the 10k helped to pay the rental. Now im interested in what you have written as I read an article only the other day in an investment magazine whereby a seller had changed their mind as their buyer was messing them around and needed more time to settle similar to your case. They too (buyers) had only paid $100 deposit. Now apparently if the seller accepted the deposit he would be liable to still pay the agent their commissions. Ill explain more......
I have the article here page 88 Property Investor May 2006 "Under REIQ clause 2 enttitlement to commision the client agreed to pay commission if a contract was signed with a buyer where a relevant person was the efective cause of the sale within 60 day period. The agent had sold the property and was the relevant person. Then came a provisio for the agents right to be paid if the contract of sale is not completed and the whole or part of the deposit paid is liable to be forfeited" In othere wods if a sale settles the agent gets paid and if a sale falls over the agent still gets paid providied the deposit is "liable to be forfeited" Becuase the sale price was more than 300k the commision inc gst was 10k. If a 10% deposit had been paid the seller would have received 20k after paying the agent. This particular buyer was liable for $10k to agent and had only recieved $100 deposit.
A real warning to all buyers and sellers I think.
Irene
Jul 25th 2007, 11:17 am
#6
Banned
Thread Starter
Joined: Jan 2004
Location: Morayfield - The Posh Part
Posts: 10,138
Re: Unconditionally Conditional !!??
Parkleigh... Nail.. and Head !!! spot on.
One dilemma we were forced into, or shall I say it was stressed could be a burden... ahem
IF we tell the buyer to go and get F**** ( frogged , lol OBVIOUSLY ! )
Then its at the agents discretion to chase the revenue expected as per commission for the sale or ( introduction of buyer ) to our home.
Furthermore.
If we were to pursue a legal case against the BUYER, due to their failings, in a purchasing capacity, and thus casting hardship upon us.. then they in turn have the right to place a caveat against us, to prevent us from selling our home, until such time as we and they settle amicably.. !!!
Now thats the words, kinda.. from a top exec now solicitor ( head of practice ) from RECIQ or whatever they are called..
Damned if you do, and damned if you dont !!
Steve
One dilemma we were forced into, or shall I say it was stressed could be a burden... ahem
IF we tell the buyer to go and get F**** ( frogged , lol OBVIOUSLY ! )
Then its at the agents discretion to chase the revenue expected as per commission for the sale or ( introduction of buyer ) to our home.
Furthermore.
If we were to pursue a legal case against the BUYER, due to their failings, in a purchasing capacity, and thus casting hardship upon us.. then they in turn have the right to place a caveat against us, to prevent us from selling our home, until such time as we and they settle amicably.. !!!
Now thats the words, kinda.. from a top exec now solicitor ( head of practice ) from RECIQ or whatever they are called..
Damned if you do, and damned if you dont !!
Steve
Jul 25th 2007, 4:10 pm
#7
Where's my visa?
Joined: Apr 2007
Location: In dreamland
Posts: 267
Re: Unconditionally Conditional !!??
the rate the visa application is moving it may be a plot i'll be needing
Jul 25th 2007, 5:09 pm
#8
BE Enthusiast
Joined: Jan 2007
Posts: 753
Re: Unconditionally Conditional !!??
REALLY GOOD POST, SO THEY CAN BE RIGHT ARS** THEN,GLAD IT WORKED OUT FOR YOU IN THE END.
WE ARE HEADING TO THORNLANDS,BRISBANE,AROUND AUG/SEPT TIME,BUT GONNA BE STAYING WITH MY SIS BEFORE RENTING, THEN FINALLY BUYING.
HOPE WE DONT EXPERIENCE ANY S**T WHEN BUYING,WE ARE JUST IN THE PROCESS OF SELLING OUR HOUSE HERE,WAITING ON VISA AND FEEL LIKE SHITE ,EXCITMENT WHERE DID THAT GO ??
KELS X
WE ARE HEADING TO THORNLANDS,BRISBANE,AROUND AUG/SEPT TIME,BUT GONNA BE STAYING WITH MY SIS BEFORE RENTING, THEN FINALLY BUYING.
HOPE WE DONT EXPERIENCE ANY S**T WHEN BUYING,WE ARE JUST IN THE PROCESS OF SELLING OUR HOUSE HERE,WAITING ON VISA AND FEEL LIKE SHITE ,EXCITMENT WHERE DID THAT GO ??
KELS X
Jul 25th 2007, 5:18 pm
#10
BE Forum Addict
Joined: Jun 2007
Location: Carramar in Perth's northern suburbs
Posts: 1,129
Re: Unconditionally Conditional !!??
Again, how you could work this in practice beats me, cos unlike most Aussies, most of us on here have sold homes in the UK, and are used to frustration and being let down, even at the n'th hour.
Anyways, thats my little story, hope you enjoyed it... its certainly more fun recalling it all from memory, than experiencing it first hand !!
Steve
__________________
Welcome to the real estate world Steve...........
Can't comment on QLD's rules and regulations as each State operates differently.
Here in WA once everything is "UNCONDITIONAL" ............ should Settlement not eventuate for whatever reason, then each party is allowed 3 business days grace to get their act together............... afterwhich penalty interest is charged against the erring default party.
If your contract had been drawn up in WA and assuming all was in order, all the tees crossed and the ayes dotted........... the none defaulting party (in this instance yourself) would be entitled to sue in a court of law for specific performance.
It's still not a bad system down-under compared to the horror stories told on here re selling of real estate in the UK. Mind you......... we never stop taking the panadol.
Anyways, thats my little story, hope you enjoyed it... its certainly more fun recalling it all from memory, than experiencing it first hand !!
Steve
__________________
Welcome to the real estate world Steve...........
Can't comment on QLD's rules and regulations as each State operates differently.
Here in WA once everything is "UNCONDITIONAL" ............ should Settlement not eventuate for whatever reason, then each party is allowed 3 business days grace to get their act together............... afterwhich penalty interest is charged against the erring default party.
If your contract had been drawn up in WA and assuming all was in order, all the tees crossed and the ayes dotted........... the none defaulting party (in this instance yourself) would be entitled to sue in a court of law for specific performance.
It's still not a bad system down-under compared to the horror stories told on here re selling of real estate in the UK. Mind you......... we never stop taking the panadol.
Jul 25th 2007, 6:15 pm
#11
Lisa
Joined: Jan 2007
Location: Nottingham-Sydney(we're here baby)
Posts: 780
Re: Unconditionally Conditional !!??
Great post although it has scared the shit out of me.
Jul 25th 2007, 7:03 pm
#12
Where's my visa?
Joined: Apr 2007
Location: In dreamland
Posts: 267
Re: Unconditionally Conditional !!??
i think after reading these i might by a tent and become a nomad
any good camping grounds round the redlands area?
any good camping grounds round the redlands area?
Jul 25th 2007, 9:04 pm
#13
Banned
Thread Starter
Joined: Jan 2004
Location: Morayfield - The Posh Part
Posts: 10,138
Re: Unconditionally Conditional !!??
Again, how you could work this in practice beats me, cos unlike most Aussies, most of us on here have sold homes in the UK, and are used to frustration and being let down, even at the n'th hour.
Anyways, thats my little story, hope you enjoyed it... its certainly more fun recalling it all from memory, than experiencing it first hand !!
Steve
__________________
Welcome to the real estate world Steve...........
Can't comment on QLD's rules and regulations as each State operates differently.
Here in WA once everything is "UNCONDITIONAL" ............ should Settlement not eventuate for whatever reason, then each party is allowed 3 business days grace to get their act together............... afterwhich penalty interest is charged against the erring default party.
If your contract had been drawn up in WA and assuming all was in order, all the tees crossed and the ayes dotted........... the none defaulting party (in this instance yourself) would be entitled to sue in a court of law for specific performance.
It's still not a bad system down-under compared to the horror stories told on here re selling of real estate in the UK. Mind you......... we never stop taking the panadol.
Anyways, thats my little story, hope you enjoyed it... its certainly more fun recalling it all from memory, than experiencing it first hand !!
Steve
__________________
Welcome to the real estate world Steve...........
Can't comment on QLD's rules and regulations as each State operates differently.
Here in WA once everything is "UNCONDITIONAL" ............ should Settlement not eventuate for whatever reason, then each party is allowed 3 business days grace to get their act together............... afterwhich penalty interest is charged against the erring default party.
If your contract had been drawn up in WA and assuming all was in order, all the tees crossed and the ayes dotted........... the none defaulting party (in this instance yourself) would be entitled to sue in a court of law for specific performance.
It's still not a bad system down-under compared to the horror stories told on here re selling of real estate in the UK. Mind you......... we never stop taking the panadol.
We were awarded Interest penalties in our favour, costed at x% per day, plus extraneous costs ( rent ) in addittion.
HOWEVER. This was only, on the recommendation of our solicitor, and had to be vettoed and okayed by the buyer of our property. We were informed, that as they dont have the proverbial pot to piss in, then should they not agree, then we are in LimboLand.
Just to iterate, I love the Aussie System, and wouldnt swap it..
However lol ( proverbial but ) .. to reach perfection , one must have flaws.
Jul 26th 2007, 12:26 am
#14
BE Enthusiast
Joined: Mar 2003
Location: Mt Eliza, Mornington Peninsula
Posts: 589
Re: Unconditionally Conditional !!??
[QUOTE=Timber Floor Au;5103553]Parkleigh... Nail.. and Head !!! spot on.
One dilemma we were forced into, or shall I say it was stressed could be a burden... ahem
IF we tell the buyer to go and get F**** ( frogged , lol OBVIOUSLY ! )
Then its at the agents discretion to chase the revenue expected as per commission for the sale or ( introduction of buyer ) to our home.
Furthermore.
If we were to pursue a legal case against the BUYER, due to their failings, in a purchasing capacity, and thus casting hardship upon us.. then they in turn have the right to place a caveat against us, to prevent us from selling our home, until such time as we and they settle amicably.. !!!
Now thats the words, kinda.. from a top exec now solicitor ( head of practice ) from RECIQ or whatever they are called..
Damned if you do, and damned if you dont !!
Great post steve and yes its something i will be VERY wary of especially when signing contracts with agents. They come across as oh so nice and then present you with a 20 page document which just seems never ending. Its put us off for the time being but when the time comes i may seek some estate agents advice on this forum just to make sure were ok.
Good luck with the new house hope all goes well.
Thanks
Irene
One dilemma we were forced into, or shall I say it was stressed could be a burden... ahem
IF we tell the buyer to go and get F**** ( frogged , lol OBVIOUSLY ! )
Then its at the agents discretion to chase the revenue expected as per commission for the sale or ( introduction of buyer ) to our home.
Furthermore.
If we were to pursue a legal case against the BUYER, due to their failings, in a purchasing capacity, and thus casting hardship upon us.. then they in turn have the right to place a caveat against us, to prevent us from selling our home, until such time as we and they settle amicably.. !!!
Now thats the words, kinda.. from a top exec now solicitor ( head of practice ) from RECIQ or whatever they are called..
Damned if you do, and damned if you dont !!
Great post steve and yes its something i will be VERY wary of especially when signing contracts with agents. They come across as oh so nice and then present you with a 20 page document which just seems never ending. Its put us off for the time being but when the time comes i may seek some estate agents advice on this forum just to make sure were ok.
Good luck with the new house hope all goes well.
Thanks
Irene
Jul 26th 2007, 2:02 am
#15
BE Forum Addict
Joined: Jun 2007
Location: Carramar in Perth's northern suburbs
Posts: 1,129
Re: Unconditionally Conditional !!??
[QUOTE=parkhigh;5106161]
.............. we are nice!
