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QLD Lenders Put Caveat on My Property?

Discussion in 'Property Law Forum' started by Jenniferlee62, 21 July 2016.

  1. Jenniferlee62

    Jenniferlee62 Active Member

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    Help needed.

    I was to settle on a property subject to sale of mine, recently. My home (the one I was selling) had only just gone under contract and the settlement on the property I was buying was due. The sellers of the one I was buying did not grant an extension and were demanding settlement, as they had purchased another home.

    Under pressure, I contacted a broker, asking how quickly I could loan money to settle and he immediately put me in touch with a finance company who wanted the home loan set up. From a corporate sense, they had "48 hour" finance they said.

    At around 3.00 that afternoon, an offer of agreement came which blew my mind. It was an offer stating they lend 430 000 with drawdown costs of 42,000 to give a net loan of 388 000 and a minimum of 3 months interest payable up front for 11,000 a month (I don't have an income anything like this, they knew that).

    I had 205,000 cash, had paid deposit on the property of ten grand, owned my home which I was selling 367,500 and would almost have broke even after my settlement (as you can see). One fee alone was 18,000. My broker said, 'if you wan this in 48 hours, you have to sign before 3.30'. At this stage, it was an offer agreement, no loan documents had been drawn.

    All night I was sick knowing it was outrageous, so at 5.30 am next morning, I sent a letter to the broker saying I could not go ahead unless the lender could negotiate the costs. That day, a revised offer arrived - 430,000 drawn down costs to 400,000 in hand. The establishment fee alone had been altered from 18000 to 6,500.

    Now as the seller was jumping up and down, I signed the offer agreement which stated if I did not go through with the loan, I would pay 2.5 percent of loan amount of 430,000 and half of the establishment fee 6,500, so I estimated it would cost me around 14,000 to just get out of it.

    Meanwhile, after talking with solicitors, I was advised to ask the sellers again for an extension which they now granted as they knew the circumstances of this financial scam.

    Please understand no loan documents were drawn up at this stage.

    One day later, I got a call from the solicitor saying there were loan documents on his desk (never once did the lender speak or contact me). I met with the solicitor who told me these documents were fraught with charges that were not included in the agreement I had signed and advised me not to proceed with the loan.

    Like I stated earlier, I expected some fees as these were explained in agreement. I never signed the loan documents. This was a Friday. All weekend I tried to contact the lender but I had never been given his number. I emailed him asking him to contact me but received no correspondence at all.

    By Monday, I had spoken to the broker about there being no early exit conditions (he knew I had wanted to pay it out in a month - no knowledge of exit fees) and the statement in documents saying it was a minimum 3 months interest ( over 33 000), so you see the loans would have cost over 70,000 to get nowhere!

    Also the company had wanted to do the loan under a company name so it cost me 1000 just to buy a company and the stamp duty would have gone from 11,000 to 18,000. The nightmare goes on...

    Anyway I withdrew as I said, expecting a bill from the lender for fees 14,000 but received no correspondence. Here's the bomb after not borrowing money and no fee bill today: I received a registered letter they have put a caveat on my property on the day I changed my mind.

    How can this be possible when they have not sent any bill or even asked for money? I have to resolve it ASAP as these are the type who will put interest on to fees. My solicitor has tried to contact them and I have had no reply as to what they are doing to me.

    How can this happen? These days, I worked my whole life as a single mother to own my home and now they do this. Please help me?
     
    Timnuts likes this.
  2. Jenniferlee62

    Jenniferlee62 Active Member

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    And I can't sell my property to settle my purchase property either with a caveat?
     
  3. Rod

    Rod Well-Known Member

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    Are you using a solicitor or conveyancer? If you are using a solicitor they should be able to handle the caveat fairly easily. If there is no contract with the lenders, they have no right to place a caveat.

    However, keep in mind there are different types of caveats so you need to find out if theirs is a 'blocking' caveat. If it is, your solicitor writes them a nasty letter saying in effect: "remove the caveat asap, you have no right to one. If my client suffers any losses due to the placement of your caveat you will be sued for all her losses, including legal fees and court costs attempting to recover her losses".
     
  4. Jenniferlee62

    Jenniferlee62 Active Member

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    Thank you, yes, there is a solicitor and a conveyancer. They have said they will deal with it but I have not heard. I guess not knowing is my problem. I did not hear anything back but maybe I need to be more patient. The caveat says, "an equitable interest as chargee of an estate in fee simple".

    As I said, I agreed to the offer of loan before documents (which conflicted the agreement) were drawn and as I withdrew and did not borrow, I expected a payment of setup fee as I described in my above note the only issue is they have not asked or sent me any fees, so I am waiting now to get a response through the solicitor.

    No monies were borrowed though and no loan document was signed.

    Thanks for your response, I will ask those questions now.
     
  5. Rod

    Rod Well-Known Member

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    If you agreed on a verbal contract with the lender, and the lender/broker subsequently sent through something different in writing, the first agreement is likely null and void.

    Check with your solicitor, it may be possible to not pay any fees to this dodgy lender.
     
  6. Jenniferlee62

    Jenniferlee62 Active Member

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    Thanks I will follow up, appreciate this
     
  7. Jenniferlee62

    Jenniferlee62 Active Member

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    What I did sign was an offer to loan agreement which included a clause stating fees for withdrawing from the loan. As I mentioned in my first question, I did withdraw (before the loan documents, which I did not sign, were drawn). I never received a bill for fees or had any correspondence from them (the lender). I did expect a bill, but nothing from them. This was this week (happening now) til a caveat was placed on my home.
     
  8. Rod

    Rod Well-Known Member

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    Talk to your solicitor about the document you signed and see if there is a way out they can find for you. Lenders normally lock contracts down very tightly but you might be lucky and have an escape somewhere. Mention 'intention to create legal relations' to your solicitors.

    It may be the lenders/you did not intend to create legal relations until the contract documents were signed. Without seeing what you did sign in its entirety it is not possible to give specific help on this matter.
     

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