We want to get out of this deal and get our deposit back!
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Could we have a case to get out of deal
- Thread starter inexperienced
- Start date
Go to your solicitor ASAP. We live and learn. Next time, never sign anything until you understand what you are signing and always use a service of an independent solicitor, independent lender, and independent inspectors. Agents are there for the vendor to make money for themselves, so never think for once that that care about you as a buyer. If you want an agent that works for you, use the service of a buyer agent.
Good luck
Good luck
If you didn't like the deal, your best chance to pull out was probably in the first week after you signed the contracts.
It sounds to me, that now you have come to the point of settlement (3 times already), and long after you signed up, you are looking for an escape clause due to not being able to source finance or the val has come in low (or both). *edit* sorry - just re-read your post - that's exactly what happened.
I'd suggest you see a lawyer, if you haven't already, to look for loop holes as a way of escape. Otherwise you're going to lose that deposit and get sued by the developer for any shortfall on a resale to another sucker (....sorry, I mean "investor").
As already stated by Ausprop, these things never end up well.
Next time, once this is over, hire your own independent advisors for each of:
The property
The finance
The strategy
etc. - so you don't get stitched up.
It sounds to me, that now you have come to the point of settlement (3 times already), and long after you signed up, you are looking for an escape clause due to not being able to source finance or the val has come in low (or both). *edit* sorry - just re-read your post - that's exactly what happened.
I'd suggest you see a lawyer, if you haven't already, to look for loop holes as a way of escape. Otherwise you're going to lose that deposit and get sued by the developer for any shortfall on a resale to another sucker (....sorry, I mean "investor").
As already stated by Ausprop, these things never end up well.
Next time, once this is over, hire your own independent advisors for each of:
The property
The finance
The strategy
etc. - so you don't get stitched up.
Look, to be fair, if the property was worth more than you agreed to pay for it, now that construction has taken place, we would not even be having this conversation. You'd be singing their praises!
The fact is, that no-one, not you, not the developer, not the finance guy, not anyone, knew what the market would be like in Melbourne in 2012 come time to settle.
This is just too big a risk for many investors to take and so we all avoid OTP for those (and other) reasons. You were just inexperienced as your nickmae suggests. Don't beat yourself up over it. Just learn from it and take more care next time.
after you have seen a lawyer and established your position have a rethink about all this. $30k vendoir finance may be a way better idea than losing your deposit and getting sued. these things are grenades and you never know which way it will fall until it does
with all due respect, and i do genuinely have empathy for your situation, you do not seem to be taking any rresponsibility whatsoever for your part in this.
in terms of what you can do in this particular situation no one can really say without knowing the terms of your contract and what assurances you were given etc but you have indicated you have appointed a lawyer.
it is important to look at this objectively and work out all the mistakes you have made to learn from them. continuing to blame the seller or his agent is not going to do you any good, from an ethical POV yes he should have advised you to seek independent advice but it doesnt change the fact you signed for a property worth hundreds of thousands of $$, knowing you were inexperienced, without reading the contract or doing any research whatsoever.
the fault lies with you and not the seller. not the end of the world, we have all made mistakes (i have made massive ones in the past) but unless youre completely honest with yourself and willing to accept where you have stuffed up you're doing yourself a major disservice imo.
anyway i dont mean to be too harsh, i hope you come out of it ok.
"He" is being paid for by the vendor (developer). It is not his job to do your work for you. But there are certain responsibilities he must comply with to ensure he is acting within the law only.
You and a lot of others. You were just naive, that's all. Chalk it up to experience.
Well it seems like you're out of big trouble. That would be a relief.
It is probably not going to happen. They would have probably got a tight contract done.....AND engaged lawyers to do it (unlike some others
)OK - then you don't have a major issue at all.
The best outcome you could expect in this deal is to have the funds to settle it. It seems these are being arranged for you. The better outcome, would have been to never entered it in the first place - but its too late for that now. At least you had a go.
recent experience seems to be the mortgage is cancelled and you keep the property (assumign you went ahead, however you are now aware of the situation so couldn't really go ahead and then make the accusation). The loan application is to an extent irrelevant tho as you made a cash offer to purchase.
What makes you think your loan application was manipulated?
is this off the plan apartments or off the plan houses out of curiosity.
we are in similar situation
the sales person told us that we did not need to see the conveyance r at the time of signing the contract and we did not need subject to finance clause according to the sales person caz it would expire by the settlement .
The property is in western suburb of Melbourne and it was our first home land purchase which was ruined by the sales people and the vendor . then close to settlement teh bank and other agents told us that we signed for overly priced land even when we signed the contract .the Vendor did not give us the option to negotiate the price and they did not give us the option to pay lesser than 10 % deposit. now they are telling us that even the valuation came shor tof 22 000 they will keep the deposit .
One imp thing they took 17 months and few days to get ready the land for settlements I came to know about sunset clause far later when I went to conve....
This is really bad when land sales office people dont tell buyers everything .
the sales person told us that we did not need to see the conveyance r at the time of signing the contract and we did not need subject to finance clause according to the sales person caz it would expire by the settlement .
The property is in western suburb of Melbourne and it was our first home land purchase which was ruined by the sales people and the vendor . then close to settlement teh bank and other agents told us that we signed for overly priced land even when we signed the contract .the Vendor did not give us the option to negotiate the price and they did not give us the option to pay lesser than 10 % deposit. now they are telling us that even the valuation came shor tof 22 000 they will keep the deposit .
One imp thing they took 17 months and few days to get ready the land for settlements I came to know about sunset clause far later when I went to conve....
This is really bad when land sales office people dont tell buyers everything .
You always have the option to negotiate on price, as well as seek advice on the contract from a lawyer. You also always have the opportunity to do further due diligence in terms of comparables etc.
House and land are harder to find comparables on, and nobody has a crystal ball to say, come settlement time the market will have moved in this direction.
House and land are harder to find comparables on, and nobody has a crystal ball to say, come settlement time the market will have moved in this direction.
And you trusted this salesperson, who is paid by the vendor.
You had the option of not signing and walking away.
What they're hoping is that you'll come up with the rest of the money somehow.
They are not supposed to. This is your responsibility.
Its like when you go and buy a coke - the shop owner is not going to tell you it is bad for your health! Coca Cola ain't going to tel you either.
