Bought a Unit at Auction - Wanna Get out of The Contract Is It Possible?

Hi Guys,

Guys I need help here. If anyone can please share there knowledge in regards to my issue then it will be big help. I know I screwed up big time.

I bought a unit at auction but when the bank did the valuation that's what they said

"As discussed, the subject property shows obvious signs of non-compliant building codes issues (ceiling height). We are aware property has been registered and have investigated further.

The property was certified by a private certifier by the name of Anthony Allen, who we have confirmed was reprimanded on 03/05/2016 on a separate issue regarding a strata development.

This is very concerning and affects the certifiers credibility. We are not willing to accept this certifiers recommendations and request cancellation of report.

As per my Solicitor Conveyancer:

This is the email I received from my solicitor Conveyancer which will explain everything in detail.

I understand from Kathy from —- bank that the findings of the bank's valuer about the unit you have purchased does not comply with the BCA due to the ceiling height being 1.8 meters from floor to ceiling and therefore, due to the bank's valuer assessment, your loan application has been declined.

Unfortunately, you have exchanged contracts under auction conditions and under the contract must complete the contract upon the vendor's solicitor serving notice of registration and an occupation certificate.

We were notified by the agent that the strata plan was registered as Strata Plan —— on the 18 November 2016.

To date, the vendor's solicitor has not formally served me with notice of registration nor the occupation certificate.

I note your instructions that you will continue to apply for another loan to secure adequate finance to purchase the property and at the same time, you wish for me to obtain more information about the original development application of the building, so we can determine what was approved by council. This morning I have sent to council an Informal Access Application under council's Government Information Public Access (GIPA) to obtain copies of the original Development Approval and other documentation that may assist.

I note that you have also instructed me to obtain a Building Certificate, a copy of the application is attached herein.

In order to terminate the Contract, we must determine that the contract is a latent defect that is a fault in the property that could not have been discovered by a reasonably thorough inspection before the contract was entered into. This can be challenging as if you conducted a building inspection prior to the auction, the issues may have been discovered before you purchased the property. Furthermore, terminating the Contract will lead to court action and you will need to consult a qualified solicitor who has experience in these sort of matters.

The problem here is that if we are served with an Occupation Certificate then you must complete the contract as the certificate certifies that the property as being fit for habitable occupation and further, the vendor will rely on the contract to enforce your obligations under the contract. As far as the vendor is concerned, he would say that he went through the right channels to obtain strata subdivision and obtain an occupation certificate.

The whole process in trying to prove that the property is not a unit but a storage space will take time as you will need to prove that the error or misconduct or failure is on the part of the certifier or the vendor.

If you purchase the Building Certificate perhaps we can try to prove that the property sold is not a unit but a storage space and therefore, the contract is misleading on the part of the vendor as you did not get what you bargained for, that is, a unit. The other alternative is that if we establish that it is a storage space, that the contract price reflect the true value of a storage space and therefore, the price should be reduced, however, this alternative is not recommended as you may not be able to obtain a loan for a storage space.

The other alternative is to approach the private certifier and ask him to explain what evidence he has to deem Lot 10 as being a unit.

I highly recommend that you seek the advice's of a qualified solicitor to discuss your legal rights should you wish to terminate the Contract.

If someone can please explain what can be done here then it will be big help. I don't have enough knowledge about all this stuff but just wondering anyone think if there's any chances for me to win this case if i go to the court?

Thanking you all in advance.

Regards and best wishes
Imdad

Comments

        • +4

          Quoting the ad..

          If you want to invest for good rental yields or if you want to live in spotless and convenient home then this is the property for you. Be quick because this excellent opportunity will not last long. With owner determined to SELL, please contact your exclusive agent Jitender Singh (Jeet) 0410 567 777 and Atul Bhanushali on 0402 961 515.

          Determined to sell aye? Wonder what is the commission rate the REA is getting?

        • @pjc bahaha

      • +5

        what's with the blinds in the photos?

        • +11

          Dunno, but I think I was actually ducking just from viewing the photos!

        • +6

          Trying to hide the fact that they are tiny and up high, because it appears to be a basement which has been converted or something.

      • +12

        Sure makes the TV look huge!

      • +2

        How could this place possibly have been built?

      • +4

        So boutique, so spacious, so spotless!

        • +1

          'beautiful refurbished' and in a 'boutique complex' !

      • +4

        Eek.. Is that an plumbing trap in the bedroom for the sink of the apartment upstairs? I thought that was a code violation if so.

        Photographer worked some real magic on the place but it still looks very low.. Still, the main photo kinda misleads into thinking you are buying one of the original units.. Not the garage underneath.

        Anyway the map clearly shows bedrooms and kitchen etc.. I'd be surprised if they are certified/legal.. And if not, should be able to escape this auction.

        Feel for the buyer.. Buyers remorse is awful at the best of times.. So would be going through hell. I bought my house at auction and it was a pretty good buy in the end, but I ended up with some anxiety in those initial weeks.

        Auctions are really best left to those with experience and support. I didn't have these but I researched the property well and the area.. So came off OK in the end.

        Well.. Who knows.. With 1mil houses and commodity slump perhaps we'll all be in America circa 2008 soon enough

        • "anxiety in those initial weeks" - please explain. I am thinking of going to auctions. :(

        • +1

          @Bavan:

          You'll be ok if you ensure you only bid if you have building and pest inspection done, conditional approval from bank..and absolutely stick to the max figure you decided it's worth before the auction initiated.

          There are heaps of guides and info online about buying at auction. Will explain some of the tricks and pitfalls.

          Also, go to a few auctions first to get a feel for it.

          Also.. Consider taking a beta blocker? :)

        • +2

          @Bavan: no matter how good the place you purchase is you'll overthink it in the first couple of weeks after purchase.
          I think it's because you can't go see it and be with it until settlement coupled with the fact you'll now have a home loan.
          All this is even worse if you're single. Hahah good luck though!! Auctions are so much fun!

        • +1

          @codyy:
          Yes being single made it much worse for me.. I also didn't have family nearby to help. Also, once you buy any place, you'll then be able to notice all the little things you didn't before and they can play with your head. For example I have a friend who bought, then started lamenting over holes in the brickwork he hadn't noticed.. Once I explained what a weephole is that anxiety left him

        • +1

          @Stitchy: Thank you Stitchy.
          Thank you @cody

        • @Bavan: get your building & pest inspections done fast, bank approval for conditional loan and have your solicitor write you an unconditional offer to give to vendor & agent. then when ready, give the agent your offer price and the unconditional offer letter. much better than auctions

  • +3

    OP, I do feel for you, even though you did screw it up. It's a terrible situation to be in, regardless through negligence or stupidity.

    Do go and find a property solicitor. I do hope the stars will line up in your favour and something gets worked out.

    I do despise the vendor for trying to off-load a property in this manner. They will never get a sale through normal offers, and the auction was to prey on gullible buyers. I can't imagine the vendor not knowing that the whole 'unit' is questionable at best.

  • From my understanding of bca, the minimum ceiling height needs to be 2.4meters.

    • That's right - my question how did he register the property - if he did it illegally can I sue him ??

      • U have to talk to a lawyer with construction case knowledge now.

      • +1

        The unit must of been built before min 2.4m height habitable room requirement amendment bca. You can request building plan from council.

        It best to get help from building consultant.

  • The dark side of caveat emptor! what nasty vendors.

    You could refuse to settle and therefore forfeit your deposit. But they can still come after you - perhaps they will, perhaps they won't be bothered and hope to catch the next suckers. Get on to a good solicitor and weigh up your options.

    • What, there's a dark side to your little moto of buyer beware?
      Only when it doesn't work FOR YOU, right?

    • -2

      They can't come after buyer once deposit is forfeited. Buyer doesn't have any other obligation I guess.

  • +1

    lol

    thats what happens when youre greedy for investment properties

    • +1

      How do you know OP bought it for investment purpose ?

      • +3

        Yes :( the property is already rent out and getting a good return - i though everything is fine with it

  • +1

    Auction you cannot have cooling off period, you will have to lose the deposit.

    However if you find a good solicitor you might get away with it not without hefty fees.

    so you will might not win over the case, will still lose some money. Good luck

  • +3

    Building Code Ceiling Heights

    A room or space within a building must have sufficient height suitable for the intended function of that room or space. The requirement is satisfied if the ceiling height is not less than -
    In a class 1, 2 or 3 building a habitable room excluding a kitchen - 2400mm - (2.4 meters) & in a kitchen, laundry or the like - 2100 mm (2.1 meters) and in a corridor, passageway or the like 2100mm (2.1 meters)."

    According to BCA Vol 2 part 3.8.2, ceiling heights must not be less than:
    •in a habitable room excluding a kitchen - 2.4 m and
    •in a kitchen - 2.1m and
    •in a corridor or passageway etc - 2.1m and
    •in a bathroom, shower room, laundry, sanitary compartment, pantry, storeroom, garage, car parking area etc - 2.1m and
    •in an attic, room with a sloping ceiling or projection below ceiling line or non-habitable room or similar - a height that does not unduly interfere with the proper functioning of the room or space. More than 50% of the ceiling space should be on average a minimum height.
    •in a stairway - 2.0m measured vertically above the nosing line.

    http://www.abis.com.au/habitable-room-and-legal-ceiling-heig...

  • +21

    OP you mention that the place is being rented out. How much is Frodo Baggins paying per week?

    • -1

      man you crack me up lol

    • What? He has left the shire?

    • $460 week

  • +10

    you done messed up Imdad

  • +2

    OMG is this the kind of units you get in Sydney? whats happening to Australia? whats next? toilet converted to a studio? reminds me of HOBBITON.Gosh this listing was estimated to sell for half a million? just makes me angry that someone would pay that much for a shoebox like this and even makes me angrier that people chose to live in these!!!!sorry to hear you got in to this mess but imdad piece of advice for you buddy, don't join the herd, be very careful and don't let greed take hold of you.
    With GDP contraction things are not looking good out there. so be very careful and make right investments.

    • +6

      its in harris park

      its a slum

      • im glad im in Melbourne we haven't gone down to this level.. YET!! but hey they build windowless 1 bedders like crazy in city lol, sometimes i wonder why people are this greedy to build this kind of units and what kind of messed up people chose to live in these units!!! oh dear feel good to be sane.

    • "GDP contraction"? What is that? I kept postponing purchasing a property thinking the boom will be over soon. From 2013, I have been trying to save 10% for down payment. The prices skyrocketed and 10% became a nightmare. Now, I make up mind to go to some auctions in a far west, op comes with a horror story, And you come up with GDP Contraption thingy? Why? Why me? :'( I quit.

      • Bavan my advice is be smart with your investment.Everybody talked about how Australia haven't had a recession in 25 years, well believe me there is no such thing called perpetual growth!!, so yes the GDP contracted which means economy is not doing well, i wouldn't throw my money on a dumb investment like this.do you get it? Gambling on property with an interest only loan is not for the light hearted and it can go very wrong if the capital appreciation is not there. :)

        • Makes Sense. Thank you anyway. :(

  • OP answer my question to make everyone on the same boat? No more misunderstanding!!

    You said the unit ceiling height is only 1.8M,but you also said it is the launch room that has only 1.8M.

    so What percentage of indoor area of this unit has 1.8M ceiling height, what about the rest, normal height? like 2.2M+?

    I am sorry but so far your explanation and without any photos just made everyone think you are %^&* crazy or bull shitting.

    ALSO!!! You said this unit was selling through an real estate agent, do not tell me there is no online advertisement for this property sale in SYDNEY! If there is, show us the link!

    • he also signed up to ozbargain just to post this

      • +2

        all of all showing sign of troll.

        • +1

          Your advice reminds me of that afl guy and his wife boxing the pipes in the kitchen in a series of The Block.

          Also, there's photos in one of the comments - someone found it, it seems.

  • +4

    Show us some pictures. It's hard to believe.

    • +13
      • +10

        Wow, just wow… I have seen everything in my life now, where do I donate my eyes?

      • 1 mill gets you that wow

      • WTF it's a house for ants.

      • +6

        LOL - just spat coffee all over my desk. What a shit hole. Why would anyone throw money at that?

        • Because someone is renting it?

        • @spillmill: would you rent it? yeah that's whats wrong with this society, some greedy person buys a shoebox and a dumabss goes and rents it out.living like this confined to a small place is very unhealthy and i hope people would realize that.people live like they are freaking immortals, people should enjoy life rather than being confined to a shoebox.

        • +2

          @sammyla: interesting point, but heaps of people live in worse conditions than this and survive.. Not saying that makes any of it right though.

        • @spillmill:This is Australia, nobody should have to live like that but unfortunately living conditions are deteriorating for many Australians and immigrants. very sad. i would totally understand if people live like this in a poorer country where building standards are not regulated.i mean come on who approved these plans? ah wait the developer probably bribed the councilmen.

        • +2

          It's time we all took a step back and realised what we're doing to each other in terms of housing is insane.

          Every week there's a media story about someone renting out an understairs closet in London or New York for $300+ per week. The sheer greed and arrogance of the owners is staggering, and people are still lining up with mountains of cash and a willingness to be abused.

          If a 1.8m ceiling is okay, then why not 1.75, or 1.6? Heck, just advertise the property for people in wheelchairs and you can double the number of levels! I'm sure some investor is reading this and thinking 'damn, good idea!'

        • @Cluster: It's not just that home owners are greedy, it's that renters are picky. There was an article today about a couple renting a shoebox in Paddington for $400/week. Ridiculous. But the fact is, Paddington has been expensive for decades. You're just not going to find cheap housing there in 2016. But a lot of young people aren't willing to move to the less exciting burbs.

        • +1

          @Strand0410: Ahh i see what you mean, so all the young people should move 2 hours away from CBD and take a train? and Travel for 3 hours? if only they can get in one of the overcrowded trains that is lol. yeah heard that before mate. i wonder why you sound like a baby boomer, probably because you are one. we dont have a good pubic transport system hence people want to live closer to city to get to work quicker, go to countries like Japan Austria, very efficient Public transport systems there i was really impressed. more time you spend on road reduces the quality of life but yes living in a shoebox reduces it even more. so what does that mean? over time Australia becomes a less desirable place to live with too many people crammed in to a small area. but hey its ok as long as we flip houses to each other and make a buck were all happy hahaha, end result is poor living conditions and slums. you know i'm right!!

        • @sammyla: I'm 28, but okay. Fact is, not everyone can live in inner Sydney. There are frankly too many people and too much demand for property. I can't afford to live in Paddington now, despite part time work and help from Austudy but I'm not entitled to either.

          And 3 hours is being wildly hyperbolic. It takes less than an hour total commute between the CBD and Parrammatta, where housing is infinitely more affordable. And there are at least a dozen suburbs in between where the commute is even shorter, assuming you work in the city.

          Live within your means. If it's a choice between a shoebox in inner Sydney or an apartment further west, I'd pick the latter. Turns out a lot of young people, won't, because 'western sydney, ew.'

        • -6

          @Strand0410: hmm so you're 28 but you are addressing young people lol, so you're talking to 20 year olds who just graduated with Uni n a 50k salary paying all of it on rent? its quite laughable when you mention there is affordable housing in Sydney, i live in Melbourne and Sydney is a joke. Paramatta???? no thanks!!, western sydney? oh hell no!,again you are not 28 mate, usually a 28 year old wouldn't tell others to live within their means. you mean eat baked beans out of a can with white bread? yeah heard the same thing from baby boomers. but i like your mature outlook to life if you are 28 but i don't think you are :) remember the word SLUMS ;). your'e going to see a lot of it in the next decade. well if that's what the destiny holds for Australia, it is whats going to be.at least then slums will get cheaper cos no one would want to live here!

        • +5

          @sammyla: I'm 28 and I'm happy to say that people should live within their means.

          What's wrong with Parramatta? On an express train it's 26 minutes from Parramatta to City so hardly a 2 -3 hours that most people make it out to be.

          We all can't live in a high profile suburb and expect a reasonable rent right?

        • @tomleonhart: yeah they are already living within their means don't you worry about that mate if they don't they are pretty stuffed, poor young people cant even afford to travel anymore, glad i'm not that young. seems like everybody is 28 here.. i feel old.

        • @sammyla: Lol. Well i'm just addressing your statement of "usually a 28 year old wouldn't tell others to live within their means" by giving a live example.

          And no we don't eat baked beans out of a can with white bread. We cook normal meal and pack lunch that costs around $200 a week.

          poor young people cant even afford to travel anymore,

          plenty of my friends go overseas twice a year :P

        • +1

          @sammyla:
          and that illustrates what the problem is. Parramatta has good infrastructure, cafe scene and a lower crime rate than many inner west suburbs yet many people holds prejudice against any suburbs west of summer hill. it's 'unacceptable' to live in a 'slum' - you'd think you are asking people to handover their firstborn as a blood sacrifice. such is the entitlement generation (i'm 27)

        • -2

          @tomleonhart: hmm so you think everybody else eat out everyday? wow man you must be a big spender when it comes to eating out, usually cost of eating lunch is around 15 bucks a day so 75 bucks a week and you spend 200? ok say you and your partner that's still 150 for both of you, mate cut it down you'll have 50 bucks leftover. ah may be in sydney you cant hey? i live in Melbourne i usually don't eat out much cos my wifes a great cook and occasionally we do on weekends but it cost both of us around 100 at a faily decent place. well about your mates, good on them, its hard to travel when youre 50 so earlier the better. ps what do you eat if you eat out? please share.

        • +3

          @sammyla:

          so you're 28 but you are addressing young people lol, so you're talking to 20 year olds who just graduated with Uni n a 50k salary paying all of it on rent?

          I'm addressing anyone complaining about rent but unwilling to move to areas were it's more affordable, which, more often than not, is young people.

          Paramatta???? no thanks!!, western sydney? oh hell no!

          Okay. Let's go over this real slow, so we can clear up any misconceptions you think might be going on. Sydney has a huge (and growing) population > most want to live in inner-city suburbs > supply and demand, yada yada yada > rents increase to reflect that. So if you're struggling with rent, the choice is now: 1) move further out where housing is affordable, or 2) live in a shoe-box. Lots of people are picking #2 because of this idea that living in Sydney must mean living in exciting, affluent areas which they can't afford.

          The fact that you obviously know nothing about Sydney, and assume a 3 hour commute is the only alternative to getting ripped off on rent, and yet your attitude is 'Parramatta? No thanks!' shows just how ignorant you are of renting there.

          again you are not 28 mate, usually a 28 year old wouldn't tell others to live within their means.

          So in your mind, everyone is financially irresponsible at 28? At what level do I evolve?

          you mean eat baked beans out of a can with white bread? yeah heard the same thing from baby boomers. but i like your mature outlook to life if you are 28 but i don't think you are :)

          If I can work only 16 hours a week in retail with a fortnightly Austudy payment, and eat reasonably healthily, while having enough money to occasionally go out and treat myself, then anyone (without dependents) can, depending on where they're willing to live. I could upload my ID or even my SID, but I don't have to to prove anything to some random guy on the internet. I do, however, find it amusing that you have such low opinions of my generation. We're 10 years out of school, if you haven't learnt these life lessons by now, and pay $400 pw for a shoebox to live in a trendy postcode, you'll grow up until someone bitching on Ozbargain about baby boomers when you're really just entitled and terrible with money.

        • +1

          @sammyla: Eat out usually happen at the local restaurant either Thai / Vietnamese or Italian. $200 is cost for 2 people eating breakfast, lunch and dinner for 7 days.

          And no i don't think everybody else eat out everyday, and i also didn't say everyone else eat out everyday, that's strawman. Living within their means can mean:

          • cut back on alcohol consumption
          • cut back on overseas holiday
          • cut back on new smart phone, get 2nd hand older smart phone
          • cut back on eating at boutique restaurant
          • cut back on 3 coffee a day
          • etc etc

          And there's nothing wrong with moving west to take a foothold in the property ladder too.

        • -2

          @Strand0410: ahh wait a second now, whos bitching? no one is bitching here? and you think i'm financially irresponsible? really i can write paragraphs mate but no point, you just want me to believe what you write on a forum, well i dont have to, i ain't bitching about anything its reality and you seem to be one of those people who accept things as they are and very content in life may be??, if you don't accept my point of view it fine so be it. i don't need to change my view on things. i don't live in a shoebox hahah oh hell no i got much higher standards, and i do own a house and (dont live in city) with i grow as much veges i can thanks to a decent backyard. sound very irresponsible doesn't it? i have also traveled and have a kid. haha don't be quick to judge.i dont have to. and i don't know why someone would get so upset when a Melbournian tells sydney houses are too expensive. they just are haha.

        • -1

          @tomleonhart: ok that makes sense you didnt say 200 includes all meals, then thats fine. i dont drink man, i gave up and i dont smoke(never have), i use a iphone 4s on prepaid(im serious) but i do have a work phone which is unlimited so no real need for a phone. i do go overseas once a year. no dont go to boutique places, too much hype and not good enough food. oh and no i don't drink coffee. yeah all you mention above are good things. well good on you. so i do agree with you. i do have a diffrent point of view which you may not agree. but sorry it is how i see it. and im older than you.need to get some work done haha . good thread.

        • @sammyla:

          really i can write paragraphs mate

          I don't believe you can.

          i don't know why someone would get so upset when a Melbournian tells sydney houses are too expensive. they just are haha.

          No one's upset. That housing in inner-Sydney is expensive, is not news. Not everyone has to, or can, live in inner-Sydney, but taken to its logical conclusion, not everyone should live in Sydney. Unfortunately, many do, so demand has outstripped supply, resulting in a skewed marketplace. That's the root of the problem, not opportunistic home owners. You want more affordable housing? Then convince people that other cities are just as attractive, or when they want to move to Sydney, discard this childish 'ew, western Sydney' attitude that you're obviously contributing to.

        • -3

          @Strand0410: oh yes i can write paragraphs but you should have a better comeback to me saying that. write all you want and i can write back, lets see where it ends hahah. Demand outstrips supply? really? you must be working in real estate? there is no such thing called shortage of housing, its a myth. don't be so gullible and believe what media says, that's what they said in all countries where they had a housing bust. shortage until bust ha? come on now.you are one of those people who twist the facts and fool people. i stand by the view western sydney is crap and i haven't even been there, i don't have to i can picture it very well. just because people like you tell me there is a shortage i don't have to listen to you or believe you. so ultimately you are one of those people who support overcrowded cities with poor living standards. good luck with your studies at 28.

        • +1

          @sammyla:

          i stand by the view western sydney is crap and i haven't even been there, i don't have to i can picture it very well.

          Again, contributing to the problem. Because of this attitude, a disproportionate number of people are trying to squeeze into the already crowded inner-Sydney market, while plenty of large homes in the west sit empty.

          Demand outstrips supply? really? you must be working in real estate? there is no such thing called shortage of housing

          There is, in inner-Sydney. You ever gone to an inspection for any suburb with a 2000-2050 postcode? Good luck. But I guess because there's no such thing as demand outstripping supply, they must all be paid actors.

          you are one of those people who support overcrowded cities with poor living standards.

          That's the exact opposite of what I'm saying. The point, you missed it.

          good luck with your studies at 28.

          It's a postgrad doctorate, but okay, thanks for the sarcasm.

        • -2

          @Strand0410: your love for western sydney is amazing, and admirable haha. at least you love western Sydney. so something positive. there is no shortage of housing,that's what they said in Melbourne now apparently there is a glut of apartments. suddenly within the last 6 months. once again you spruik real estate, its ok its what you chose to do. i don't spruik real estate i i use a house to live and enjoy.

          so you're implying people just want to live in Sydney because they want? no mate they have no other choice, roads are gridlocked public transport is bad so what choice do they have?? im not a dumbass to be fooled by people like you. sorry about that. so go tell someone else about shortages and easy commutes to city from outer suburbs.

          post doctorate ha? i wasn't being sarcastic, there is not much point doing a postdoc unless its in a field that would help you get a job my wife actually did one of those and ended up having to change her career path simply becasue the VIC government cut research funding to dairy(she was at DPI). so i hope you are in a safe field haha.

          And one more thing about PHD's , thsoe progrmas are a waste of money sometimes, i mean you don't seem to do much than replying to me here but must get paid a minimum of 25k tax free (yes i know all this), that's what my wife got for 4 years and a full scholarship on top haha.but mind you she did work for the money she got , she spent a lot of times dairy farms gathering data and designing feed lots for farmers so she did something and got 5 papers published in peer reviewed journals, i hope you do not spend too much in here and really publish a a few good papers its your duty hahahahaha

        • @sammyla:

          your love for western sydney is amazing, and admirable haha. at least you love western Sydney.

          I don't live in Sydney anymore, and never lived in the west. It's not love, it's pragmatism. The fact you can't tell the difference between 'I'd live there because the rent is affordable, and transport options are decent' and love, is your problem.

          I can't speak for Melbourne. But okay, sure, the housing crisis is just a wild conspiracy theory.

          im not a dumbass to be fooled by people like you. sorry about that. so go tell someone else about shortages and easy commutes to city from outer suburbs.

          So you're not a 'dumbass' to be fooled by 'people like me,' but believe that a 3 hour daily commute is a real thing despite multiple users from Sydney telling you that it's completely untrue. Okay, gotcha.

        • @Strand0410: I still don't understand what sammyla is arguing for or about. haha

        • -3

          @Strand0410: ahh on break from writing the PHD paper eh?(at least that's what you're telling me you do) well i just just had lunch, this is the longest i have spent on OZbargain in a single day but i like it. luckily my day at work is not so busy.

          ok lets see.still your love for western Sydney is fascinating simply because you encourage others to go live there hahaha. funny when someone who doesn't live in west urges others to go there. you are so humane and kind i have to say you think a lot about others.kidding!! you just want others to go live in a less desirable suburb.

          Housing crisis is not a conspiracy theory,its driven by many factors, unplanned immigration which doesn't keep up with infrastructure, speculation on asset classes which in turn treats them like commodity when they should be just shelter. land banking and tax concessions that encourages people to speculate on assets. they have a law preventing foreigners buying existing Houses unless they knock down and rebuild- biggest joke and not enforced. so a few reasons for you since you are so uninformed.

          well in Melbourne there are suburbs that are 50ks away from city usually it takes around 2 hours on monash freeway to travel to city from paces like Pakenham? now ask me why? because there are multiple accidents daily when people try to cut in and out of lanes and try to get to destination quicker. i really feel for them, some even die. too many people use it and the number is increasing by the day, 5 years ago it got expanded haha now they are doing it again, well lets talk about trains here in Melbourne, they are overcrowded and they are very dirty trust me probably the dirtiest in the country some prefer to stand than sitting on seats, yes not kidding.so yes not a lot of pluses that encourages traveling on train mate. i've been to some European counties and trust me i would take train to work over there. ok may be i exaggerated travel time by a bit(not a lot) hey you're smart enough to understand my point don't you? don't always take things literally man!! after all your'e going to be a DOCTOR.

          Now about Sydney commutes, i head its equally bad as melbourne and roads are crowded, you need to give me stats(driving/pubic transport) here if you want me to believe otherwise.

        • -2

          @tomleonhart: correction unplanned population growth and infrastructure not keeping up lol

        • @sammyla: OK.

          Strand0410 is pointing out way on how to cope with the issue.

          You are arguing about the issue.

          I prefer Strand0410's approach.

        • -1

          @tomleonhart: haha no hes not providing the solution hes asking people to join the herd and live in a less desirable place man its not ok. i'm not reactive i just tell you like it is. that's why this argument is taking place hahaha .you can cope with the overcrowding issue till it really gets out of hand which i'm seeing right in front of my eyes.

        • @sammyla: He's suggesting solution to people who are paying $400/week to live in a shoes box to be near the CBD.

          Your solution to this problem is ?

        • -1

          @tomleonhart:well i could tell you but you wont like it given the industry you're in. so lets not talk about it. lets just stop this, you and i are entitled to our opinions. have a nice day.

        • @sammyla: damn I was genuinely wanting to listen to your solution.

          Have a nice day + weekend. :)

        • -1

          @tomleonhart:
          the solution is to sit tight, wait for a the bubble to burst and offer unsolicited advice to people in other cities on where and how to live their lives ;) move on peoples, that's enough kb warring for the day ;)

        • +1

          @xbai: You're right. MORE TIME TO LOOK FOR BARGAIN !

        • -1

          @xbai: oh didn't see this, bubble? what bubble? and bubble bursting? now that's serious talk, be careful what you wish for it might just become reality, nobody gave you advice on how to live your life. you live it the way you want.

      • +8

        ffs i have claustrophobia just looking at the photos.

      • the building next to it doesn't look that tall either…

      • Wow. OP wasn't kidding. You can tell something is 'off' about those ceilings just from the photos. I'm shocked that a home inspection didn't set alarm bells off.

  • How did that certifier miss that, is he blind?

    • +17

      No, just short.

      • +2

        it was frodo who built it, seemd alright to him.

  • -1

    FYI, winning an auction simply means you must sign a contract of sale. It doesn't mean you must purchase the property without exception. You are completely protected by a contract of sale, so long as it's been done properly.

    Any basic contract of sale handled by a conveyancer or solicitor is going to have the clauses / special conditions sections of the contract filled in for being conditional on both you obtaining financing (a loan) & an acceptable building/pest inspection being complete.

    The contract of sale should legally allow you now to terminate the offer/COS (this means you can simply send the sellers a letter and say thanks but no-thanks, I am terminating the contract and backing out) at no cost to yourself for any of the sellers expenses, based on either of the clauses not being able to be met for obtaining financing, or the building not being up to code via the inspection.

    • No auction contract (in NSW/ACT at least) has subject to finance or subject to reports clauses. A purchase at auction is unconditional.

      It would basically defeat the purpose of having an auction if people could then back out and you were back to the drawing board.

      Very few "normal" contracts have subject to finance or subject to reports clauses either.

      • +5

        If you are misled or there is fraud involved, the contract is null and void.

        • -1

          It is not quite that simple, but yes, that is basically correct.

          Not sure what that has to do with what infinite said however.

        • +1

          Its got nothing to do with what he said, its got to do with your response to what he said.

          You said ". A purchase at auction is unconditional." However there is always an exception to every rule.

        • -1

          @garetz: Unconditional in this sense does not mean you can never get out of the contract (due to fraud, or misleading or deceptive conduct, or certain issues with the property, or other potential reasons), it just means that it does not have any "subject to" clauses.

        • -1

          @djkelly69: That's primarily why you engage a conveyancer or solicitor. The seller presents the contract of sale to you, then you have your legal rep review it & add the relevant clauses to it, then you sign it and return it to the seller. If the seller doesn't like it, the offer is not accepted and then go's out to highest bidder #2, #3, #4 and so on. It's called offer & acceptance and is part of common law dictating how contracts operate. Also, if the seller fails to accurately disclose in full any part of the property for sale, or even discloses incorrect information in good faith that fails government zoning, building or dwelling laws - then that is also ground for immediate termination of the contract.

        • -1

          @infinite: errrrr. Before the auction you can ask for the contract of sale and is typical practice. Last three auctions I have been too and did bid had the clause that it was your responsibility and was not a clause of termination of the contract.

          Secondly if you're the winning bid, and have second thoughts they can take you to court for fraud and can be sued for the difference in price from the highest bidder is willing to pay and your bid.

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