Real Estate Forcing Us to Be Landlords and Homeless, What Are Our Options?

Looking for advice.

Currently renting, landlord sold property on us to owner-occupiers not investor buyers, so Notice to Leave issued months ago for our end of 12 month lease 13 Nov. Instead of renting again we saw a broker to get a home loan & put a contract on a new home. Before entering the contract we were assured tenants would be vacated before settlement 13 Nov (timed perfectly with our end of lease) as we are owner-occupiers, no interest in being landlords. Aware tenants needed 2 months notice to vacate, contract signed 6 Sep, NTL to be issued with tenants vacate date being 6 Nov, a week up our sleeves.

Problem is, real estate sat on NTL until 27 Oct so their lease goes to 27 Nov leaving us with no place to go (regional Qld, rentals scarce) and forced into being landlords. We have no landlord insurance and legal documents state private purchase not investment purchase. Did not organize another interim house as we were promised move in date was settlement date 13 Nov. We have no place to go, paying a mortgage on a house we can’t access.

Real estate not accepting liability even though admitted administration error their end. No care we will be homeless and closest storage is 45 minutes away for a full house of furniture, 4 vehicles and a large dog, when the house we bought is 5 mins down the road!

Tenants protected by RTA, but where do we stand? We can’t extend in our rental as new owners have been doing drivebys for weeks desperate for us to move out. Any advice appreciated 🙏🏻😩

Comments

  • Talk to your current landlord and ask if you can stay until the end of the month.

    Let them know you're in a tough spot and won't be able to move out on the 13th as planned.

    You could offer to pay a bit more to make up for the inconvenience.

    If they knock you back you can just refuse to move out and then they'd have to go through the courts to evict you, which would be in the back of their mind as well.

  • -5

    Your tenants have every right to stay

    Your fault for not doing a correct contract

    Just man up and be homeless for a little while

    • +2

      Buyer acted correctly, the Vendor failed to provide vacant possession.

  • If money can fix the problem then its no longer problem

    Have you tried offering the current landlords above market rent to stay there for 4 more weeks?

  • +1

    I was initially wondering why it was your responsibility to notify the tenants to leave, and not the current landlord, but now I see, your conveyancer should have pointed out the lack of vacant possession.

    With the stamp duty concession in danger, it does sound like both the REA and your conveyancer should help out with allowing you to settle later, and stay where you are until then, and deal with the new owners, OR entice/help the tenants to move now.

  • Small claim court against real estate business.
    No lawyer invovled so your cost is minimal. If the defendant failed to appear, you win by the default judgement.

  • It may also make a difference to your loan from the bank. PPOR loans used to be different to investment properties. You might need to check with them, too.

  • -1

    Submit paperwork to NCAT/VCAT to object to the Notice to Leave for your current residence. Add the REA as the counter-party. This process will delay the whole thing by a few months. Meanwhile, stay in your current residence for 2 additional weeks. After you are in your new house, consider whether or not to withdraw the NCAT/VCAT case.

    • +2

      Meanwhile, stay in your current residence for 2 additional weeks

      Two wrongs don't make a right.

      • the real problem is that someone will be homeless

  • Offer the tenants in what will be your PPOR a financial incentive to move out early?

  • Don't forget, that's if the tenants move out voluntarily. If they, for some reason, do not want to move, for example, they can't find somewhere. You can be stuck with them for another 3 or 4 months in the eviction process.

  • Looks like this is QLD so I'm not familiar with the state laws on this.

    NSW land contract would have vacant possession in the clause, there are penalties involved if vacant possession is not provided. Call your conveyancer.

  • Another option you can try
    Enter into an rental agreement with your tenants and be their tenants.
    Offer them the a portion of the rent they pay you and ask for exclusive access for a part of the house. They can move all their stuff to the other part.
    You can even extend their lease for a week or two till they find a new home as an incentive.
    It would be inconvenient sharing the house for a few weeks, but it will definitely save you the hassle of moving twice.

    • Great idea but maybe just for storage..

  • +1

    Just an aside - sounds like you're not really in a position to be a homeowner financially if, as you said in some of your comments, you've basically spent every last cent you have to your name on the deposit. Home ownership is expensive, and you're going to have a lot more costs now than you did when renting. Good luck but you're not off to a good start.

  • +11

    WE HAVE A RESULT. 1st, thanks to all the sincere and genuine commenters with help which gave me the legalese terms to create questions I wouldn’t have known to ask. 2nd, all you negative people, please focus on your own miserable lives & stop acting superior by putting others down. Human compassion goes a long way and you are obviously lacking, so enjoy your miserable existence and find an alternative hobby.

    Those with the angle ‘oh the poor tenants’ failed to identify we are in the same boat! We rent, our house was sold to owner-occupiers, this is the 3rd house we have rented in 3 years where this has happened, hence why we’ve bought as we’ve had enough! We are within our right to buy! We had made it clear we were owner occupier buyers and would not be taking on tenants which was agreed to. The tenants were never our responsibility they are tied to the previous owner as we receive no rent or bond, so they were never our problem to inherit or cater for. If it came down to us, mortgage payers being homeless or the tenants, it was going to be them. We WERE facing homelessness ourselves due to our lease ending, I don’t understand why I was painted as the villain when we are in the exact same position as these tenants. I will not be looked down upon because we were able to buy! That’s life!

    The resolve was this. We spoke to a solicitor who advised our hands were tied until end of their lease 27/11. We started looking at storage sheds, accommodation, flying the dog to the in-laws etc. Prior to this, we had been active in sending the REA vacant rentals via email the last 2 weeks for the tenants. Hoping they were acting on our behalf in finding accommodation for them also. We attended meeting with REA yesterday. Our persistent actions paid off. We were advised tenants had signed a contract on a rental. REA divulged tenants knocked back multiple properties and were being fussy due to owner selling house, they stated if they didn’t find anything local for them they had full intentions of squatting beyond their NTL date 27/11. So those feeling sorry for those tenants, don’t, they had full intentions to screw us. Again, not our fault, we were innocent buyers, all vitriol needed to be aimed at owner who sold. We did nothing wrong and are entitled to purchase property. Only condition to getting keys on original settlement date 13/11 was we had to waiver tenants cleaning the property. Not an issue, we have biohazard cleaning booked as tenants smoked inside the property for 3 years and had inside pets. The house is putrid, & the condition of the house due to the tenants saw the owner lose $64K off asking price. It doesn’t pay to have bad tenants. Place needs to be gutted. Hence why our budget did not include additional relocation costs as our budget was for renovations and repairs at the hands of the current tenants. Anything outside of renovations was an issue obviously.

    We got the result we wanted. Yesterday we were finally able to organize removalist, locksmith, new carpeting, cleaning, solar panels, painter. Next we need to redo kitchen and 2 bathrooms due to cigarette burns on every surface from tenants (why the carpet has to go too). So busy day yesterday and the work continues as we are able to satisfy our own NTL date and have the property cleaned on time.

    Thanks to those who provided solutions, advice and support. All you other unnecessarily mean idiots with no lives and superiority complexes, may the fleas of 1000 camels make your crotch itch and your arms be too short to scratch. Seriously, find a better hobby. I only hope you receive the treatment you offer others.

    • +2

      That's great news for you! Hopefully some weight has been lifted off your shoulders during this stressful time

    • +1

      Thanks for the update and glad it worked out.
      Glad the multiple failures were resolved.

    • Glad you got a good result, but not sure why the focus on attacking both the outgoing tenants and ozb commenters.

  • Agents are such useless profession. Rarely do you hear a good experience.
    (not associating this with anything to do with prices but the service)

  • Not sure what the real problem is for you OP
    It seems like you're concerned about things like deferring settlement etc - which i thought was irrelevant given you post states that you dont have a place to live in
    If you are concerned about being out of pocket, maybe its not as bad, considering that you will be entitled to rental income post settlement (try to get more considering its the seller's REA who stuffed up, not yours)
    But none of the above resolves your stated concern, which i assume would be due to difficulty in finding a place to store all your stuff (furniture etc) temporarily
    Hopefully you dont have too many things to bring with you, which means that you can just get a temporary place for 2-3 weeks with the rental income you'll be getting?

  • -2

    i love these threads, always reminds me that i did my life perfect, living with my parents and then buying my first home at 24, renting sounds like a nightmare

  • -1

    Op be aware that there would be CGT event issue if take that rent at the start of ownership which can become costly tax when you sell the house.

  • This sounds tricky and annoying. I don’t know why you haven’t consulted a lawyer yet.. There are huge bloody issues here. Get a lawyer asap. A conveyancer isn’t going to know anything about how to proceed. That’s why they are doing conveyancing, and not property law.

  • Why are there so many incompetent conveyancing lawyers?

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