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VIC Lost Deposit on Foreign Investment Crackdown - What to Do?

Discussion in 'Property Law Forum' started by Tony Marsh, 3 August 2017.

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  1. Tony Marsh

    Tony Marsh Active Member

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    We currently lost our 67K deposit on an new building in Melbourne due to the government and our bank's decision to cease lending to foreign investors. Vendors kept the money and refused to allow a valuation to got through at last minute. We are a UK married same sex couple, I am Australian.

    Disastrous. Wanting to know where we stand?
     
  2. Rod

    Rod Well-Known Member

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    If the Vendors did anything stopping you fulfilling your contractual terms then you may have justification in having the deposit returned.

    Recommend seeing a solicitor and giving them the sale contract to look through. One or two seemingly minor facts may swing a decision either way in a scenario like this.
     
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  3. Tripe

    Tripe Well-Known Member

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    Hi

    Was the valuation, a paid bank valuation as part of the loan process?
     
    #3 Tripe, 4 August 2017
    Last edited: 4 August 2017
  4. Tony Marsh

    Tony Marsh Active Member

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    Yes. We found a bank that was willing to lend us the mortgage be it at a massive rate and and additional 10% deposit. The vendors were told of the offer and in the process we rescinded and they refused to let the Bank in to make a valuation for 4 weeks. So in a nut shell we did not rescind the system did and now we are out of pocket.
     
  5. Tony Marsh

    Tony Marsh Active Member

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    Thanks Rod! Know of any? Have been looking online. Sending messages to many but not having much luck.
     
  6. Rod

    Rod Well-Known Member

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    No, and not allowed to give recommendations on this forum. At the top of the page there is a link that says 'Find a lawyer'.

    I'd wait a few days before getting anxious about a lack or replies. Good lawyers will be busy.
     
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  7. Tripe

    Tripe Well-Known Member

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    What do you mean by rescinded? The system did?
     
  8. Tony Marsh

    Tony Marsh Active Member

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    Meaning the contract between the vendor and us the purchases became null and void and the vendors kept the deposit. We ticked all the boxes when purchasing the property and then found the banks pulled back on lending to foreign investors thus making it difficult for us to find another bank that was able to give us a mortgage. So when I say we didn't rescind (cancel the contract) it was due to the governments and the banks (the system) that put us in this disastrous situation.
     
  9. Rod

    Rod Well-Known Member

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    A change in Government policy is not going to give you a cause of action against the Government. The original bank and the vendor may be at fault but you need a lawyer to look at the detail.
     
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  10. Tripe

    Tripe Well-Known Member

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    Normally a house sale is conditional on finance being approved by a bank, sounds like you did not have this condition?
     
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