Vendor fails to complete.
 

In late May I agreed to sell my Australian ( N.S.W. ) property with the settlement delayed until late September. At the time my intention was to return to U.K and retire there once the house had settled.

Contracts were exchanged and a 10% deposit paid by the ‘purchaser’, with the deal in place I went to U.K to start preparations for my new life. Now that I’ve been back here for a while, I feel I’ve made a big mistake in agreeing to sell my Australian property and I’m thinking of pulling out of the agreement.

From what I’ve been able to gain from the internet, the contract to sell, is written by the vendor to protect the vendor. So if the purchaser fails to act as agreed, the penalties are clear and substantial..... they lose their deposit.

But if the vendor decides to ‘pull the plug’ then the situation is much less clear. I gather that the ‘purchaser’ can apply for a writ for the vendor to complete as agreed, but if he/she fails to comply, it seems the only recourse the ‘purchaser’ has, is to go to the Supreme Court and ask that the original contract is enforced.

I’m more than happy to refund the deposit and any reasonable expenses incurred by the ‘purchaser’ and as I know the party involved, I really don’t think that they are in a position to finance a trip to the higher courts. Of course I’ll seek legal advice as soon as I return to Australia in August, but I was wondering if any forum members had ever been in a similar situation.

Re: Vendor fails to complete.
 

Probably should have thought about that before you signed the contract. The buyer doesn't deserve that kind of crap, if it's a mistake live with it.

Re: Vendor fails to complete.
 

Thanks for your 'input'. :)

I take it that if you feel that you have made a mistake in life your philosophy is to just continue down the 'wrong' path and do nothing to try to rectify your initial error ?

It's true that someone might have to 'suffer' for my change of heart, though human nature being what it is, I'd rather it was them rather than me.

I just hope that they take the news better than you seem to have :(

Re: Vendor fails to complete.
 

If I've given my word, and more so if I've signed a contract, then yes I would prefer that I would suffer rather than the other person if I subsequently feel I've made a mistake in signing it. It wouldn't be fair on the other person. I don't feel someone who has signed a legal contract should try and weasel their way out of it because they subsequently "feel they have made a mistake" - the time to think about that is before the contract is signed, or during any cooling off period.

You're talking about 2 months after you signed the contract, and possibly closer to 3 months, to tell the person you're tearing up the contract because you don't feel it's the right thing for you.

To prefer the other person suffer because you can't stick by the contract you signed after you decided to sell your property is just low.

Re: Vendor fails to complete.
 

At the risk of stating the obvious - why not just ask your solicitor?

Re: Vendor fails to complete.
 

Do try to calm down ;)

The 'contract' is nothing more than a piece of paper with two signatures on it, if the law decides that the contract is legal and binding and I have to abide by it, then so it will be :)

I obviously don't share your high moral values, but I don't feel that words such as "low" and "weasel" are in any way justified.

Regards,

Hino

Re: Vendor fails to complete.
 

I will......as soon as I return to Oz in August.

As I stated in my O.P., I'm presently in U.K.

Re: Vendor fails to complete.
 

Just send them an email, it's clearly preying on your mind, seem to recall this isn't your first thread on the topic so just email them and get it over with, good or bad.

Re: Vendor fails to complete.
 

Hi Peepster,

Well remembered ;)

To send them an "email" requesting legal advice and without an agreement in place to pay for the advice, might work with your legal team, but I'm afraid that my mob are a bit more 'old fashioned' :)

Re: Vendor fails to complete.
 

Old fashioned is one word for it :lol:

Re: Vendor fails to complete.
 

http://www.fairtrading.nsw.gov.au/ft...e_process.page

This is from Fair Trading NSW, please read under contracts exchanged section.
The purchaser need not go to court themselves as all they have to do is lodge a complaint with Fair Trading, and they will do the investigating and prosecuting (if necessary).

Re: Vendor fails to complete.
 

I was being polite. ;)

Re: Vendor fails to complete.
 

:amen:

To the OP - dont sign a contract if you cant stick by it. How would you feel if they signed a contract and a couple of months later did a back flip? Maybe you should have put this option to back peddle into the contract but I bet the buyer would have walked away. How would it feel if you loved living back in UK and the buyers pulled out at the last minute leaving you stranded in UK with a house to be re-sold in Aus?

yep anyone can change their mind but the problem is where a contract is concerned you should be held to account. i hope you have to abide by the contract you chose to sign.

lesson is don't sign a contract you can't fulfil mate:thumbdown:

Re: Vendor fails to complete.
 

The deal made should be honoured. Whether you choose to be in the UK or Australia, you asked the buyers to commit, and it is only fair that you behave in the same way.

There was a thread a while ago on vendors trying to break contract, and I thought the outcome was that it was not possible, can't currently find it, but I am sure someone can add a link

Re: Vendor fails to complete.
 

problem is some states are different so not sure how this will pan out but the OP will prolly ask his / her solicitor for legal advice on breaking their contract. In Qld gazumping is still legal whereas in other states it isn't so even though this isn't gazumping this shows each state can have different legal rules.

A contract is a contract ......or at least it should be:sneaky: