VIC Can I pull out of contract of sale?

[Max W]

I recently purchased a commercial property and signed the contract of sale.

The commercial property was tenanted and I found out today after its all been signed that the tenant is in administration.

Can I pull out of the sale? If so, how?

 

[Tim W]

1. Basically, you want to pull out of a contract for change of mind?
   Not much chance of that.
   
   
2. Frankly, I would have expected that your own lawyer's due diligence
   would have picked the administration up.
   
   
3. On the other hand, if the real estate agent lied by omission - that is, withheld information that they knew, or reasonable should have known, would be relevant to your decision to buy - well then maybe (very, very maybe, subject to many ifs, buts, and unknowns) you could have some prospects.

 

[Max W]

Hi Tim,
Thanks for your reply.

1. No it is not a change of mind - I want to pull out because I was told that there is a good, long standing tenant in there but now I discover they're in administration.

2. I would've thought so too.

 

[Tim W]

I guess the next question is.... Is the tenant current on the rent?