The sale of house contract has gone unconditional, and the day of paying the 10% deposit, the buyer says, they can't pay the amount due to financial difficulties. What options do I have here?
They already requested for an extension before as well.
They have wanted a lot of my time since the last 3 months. What options do I have? Can I pursue legal to pay the 10% deposit they promised? I am planning to send the rescind notice through conveyancer.
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22 min ago
Welcome to OzHouseContracts.
Sigh.
OP, speak to your conveyancer and take the action they advise you to take.
They 'WANTED' your time…don't give it to them…LoL
Talk to your conveyancer for options. If I'm you I will ask if I could legally list the property again.
Of course you can take it through lawyer. If I'm you I'll sue for entire sale price.
At what cost and timeframe? No idea.
Not advice.
Thank you
yes you can pursue them and more than likely win, you will have to pay your own legal fees off the bat, and if you win then then they will be up for that as well.
you can also sue for the deposit and also the difference between your subsequent sale price and the sale price of the defendant.
I wouldn't send a rescind notice, its up to the buyer to get out of this, make them pay the deposit, or sue them
Did you engage a solicitor to sell your property? This is exactly the type of question they are there to answer.
I would think this would be an unusual situation though, because I have never heard of contracts going unconditional before the deposit is paid. Usually you pay the deposit on day 1 and get the refund if it fails finance or B&P before it goes unconditional.
I know it was my first property and didn't get the proper conveyancer and guidance. Even then, the buyer didn't pay the 10%
who on earth did you go to?
Don't understand. So you sold a house without going through a conveyancer? Who prepared the S32? Was there a real estate agent involved?
OP - what options have you been given by REA, solicitor and conveyancer? As we know very little what you have or haven't done.
When you have your options, you can come back to us with a Poll. ;)
The Conveyencer said, they will issue a rescind notice today as they haven't paid the amount, which was last saturday. She also recommended that I can take help from Lawyers to pursue this case legally.
send bikies, wearing masks.
Let your lawyer/conveyancer advise you - this is what you pay them for. End thread.
That's weird. I thought it cant go unconditional unless they've paid the 10% (or other agreed amount) of deposit. Did you agree to go unconditional without them paying a deposit? :O :O :O
Depending on the state. For example in NSW, you pay 0.25% upon first signing the contract, that gives you a 5 day cooling off period. Within the cooling off period if the buyer withdraw, the 0.25% is forfeited. If the buyer did not withdraw within the cooling off period, then the contract automatically goes into unconditional.
Under unconditional if the buyer cannot proceed, usually the contract states what are the penalties will be.
oh. I thought that the 10% deposit is a requirement of it going unconditional.
Deposits in NSW is only 0.25%? That makes it so easy to change your mind and walk away.
That's to start the cooling off period.
After the agreed cooling off period, it goes unconditional with the 10% deposit. I thought, one /needed/ the 10% deposit to go unconditional but it appears that you can just - not pay it - and wait the the lawyers to come visit.
Yes, provided you give notice to withdraw from the contract before the cooling off period. Other state like SA, the penalty to walk away from cooling off is only $100.
Don't know what state you are in, but you should be entitled to the 10% which should have been received before it became unconditional. Also if you sell your house again below the price of the rescinded one, you should be able to make a claim for the difference. The latter is usually visible in the newspapers showing high profile people or celebrities being involved. For this to happen, you cannot sell your house to your cousin for $1 and expect to sue for the difference though.
I see the word UNCONDITIONAL and interpret that as without any further conditions, thinking along the lines that all previous conditions no longer apply and its time to fulfil the obligation in the contract.
Mind you this is a Bargain site and I'm only here for said bargains I could be wrong, remember best to pony up for a lawyer, free legal advise from non qualified bargain hunters may not be admissible in court
Speak to a lawyer;
However my experience with several purchases/sale of residential property (in NSW) is this - until the contracts are exchanged then the purchaser is likely to be within his right to not proceed (a cooling off period for example OR by the sounds of your situation, an agreed period).
Just because the deadline has been reached does not convert a conditional period to unconditional automatically, but more operating like a sunset clause where the purchaser has decided not to proceed (for whatever reasons).
Take the 10%, people that buy houses unconditionally should have their finances in order prior to offering.
Honestly it shouldn't be your time wasted for their poor decisions/lack of due dilligence.
Talk with a lawyer.
You could sue them, but if they can't pay, you're going to get stuck paying your lawyers bill in the mean time.
Thread locked (OP detected as Ghost account)
Hi welcome to ozbargain your property keyboard lawyer experts.
Speak to a lawyer.
Also read through your contract and understand what it says.
Before rescinding make sure you know what you are entitled to and if you can actually rescind.