WA Mortgage and Property Law Issues Caused by Lawyers for Property Seller

[toni]

I brought a house at auction. I paid 5% deposit in cash. I went for my home loan (mortgage) and I received an extension from the lawyers who where selling the property. I then received my paperwork for my home insurance for the property and payments where coming out off my bank for insurance. That being Bankwest. I also received paperwork from Bankwest with my loan with the 5% deposit coming off the purchase price of the property.

I then end up finding out the lawyers who own the property have called the bank and told them I was not allowed the first home owers grant. The lawyers where lying to my bank as I never owned a home before. Next thing, I'm being told now is I'm no longer allowed my home loan because of these false allegations from the lawyers. I ended up with no loan, no house and they took my deposit as well.

Can any one please help me? I know what they've done is not right.

 

[Ivy]

Hi Toni,

It sounds as though you will need to see a property lawyer.
However to get you started, I need some more information from you:

1. Why did the lawyers call your bank?
2. Were the lawyers acting for you?
3. Have you applied for the first home owners grant? If so, what was the outcome of your application?
4. Are you aware that you cannot get the grant if your de facto partner or spouse has owned their own home before?
5. On what basis did the bank deny your loan? Was there a clause in the mortgage agreement that allowed them to deny you the loan if you weren't eligible for the grant (or if you misled them)?
6. Has the property been sold to someone else now?

 

[toni]

The lawyers where the ones working for the seller. I had a mortgage broker who applied for the frist home buyers grant for me. I never owned a house before. Lawyers said I was in a de facto relationship, but that was not true as I receive child support from my kids farther and I also receive a small amount from Centrelink for family tax. I gave my mortgage broker the paperwork showing this. As I have a full-time job, I was only allowed a small amount from Centrelink. The lawyers made allegations about me that were not true.

Because of their lies, I also had Centrelink investigate me and i stop receiving the small amount of payment from them. I filed a complaint about this against Centrelink and I won my case. So the lawyers really have no right to make up lies. I got my loan I thought as I received the paperwork for the insurance from bankwest thay where taking money out my bank account to pay the insurance. bankwest was the bank I apply for my home loan with. The only reason I was never allowed my loan was because of the lawyers telling the bank I was not allowed the first home buyers grant.

The home is now been sold to someone else and I find this to be unfair as I put my deposit down on the home and it should have been mine.

 

[Ivy]

Hi Toni,

Thanks for that additional information.
Have a careful read of the mortgage document you signed when you applied. What grounds did it give the bank to deny your mortgage?
Also, has the bank acknowledged that the allegations from the lawyers were false?

I still think you should seek legal advice. There could be a few causes of action here (e.g. against the bank and the vendor) and a solicitor can advise you who you should chase and under which law.

 

[toni]

I had a mortgage broker who i gave my papers 2 saying that i was not de facto ( child support and family tax papers from Centrelink ) The only reason the bank denied loan was due 2 false information from lawyers . No reason after than that was ever give 2 me . The sellers have my 21500 thousand dollars deposit. I asked 4 it back and i was told 2 call lawyers and the lawyers said 2 me thay no longer wish 2 communicate with me