VIC Property Law - Bought Property at an Auction?

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Rishi J

Well-Known Member
29 November 2017
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121
I'm new here, please be nice

So I have bought a property at auction in Victoria in Spetember 17.

I bid 648k at auction but the agent has put 649k on contract as sale price. The land is clear without any caveats and 80+ % of the price I paid is land value.

I have not done pre-inspection of the building and showed up at auction and bought the property. The agent is not providing me inspection as he says it should be done before inspection. He is not providing me with a list of 'inclusions'. He is also not letting me complete a final inspection – clearly mentioned in contract that I have a right to it.

The settlement is due in mid-December. I changed my conveyancer to legal firm – but they are all the same – just siphoning my money.

What can I do if I am not allowed a final inspection under property law? What if they remove items from the property ?

I know I can withold up to 5000 after final inspection. My lawyers asked me to sign the transfer documents for 649k but I am unhappy with it – I have still signed them in preparation for settlement.

Can I delay settlement without being enalised if the agent is not complying with my various requests?

Thanks for your help in adavance!

Regards,


Update :

I still do not have a list of inclusion. They have not allowed me measurements of land etc and they have not changed the price to 648K. They are not allowing me final inspection.

Comparitive sales a simialr to price I paid or a bit higher compared to the price I paid. Around 85% of price I paid is for land.

The new lawyers are no good but they have atleast stopped release of 10% for my benefit. Ideally I would like to get the property in perfect condition with all inclusions

Thansk a lot!
 

Luiza

Well-Known Member
26 July 2017
15
3
74
Victoria
www.lslawconveyancing.com.au
If you have signed the contract with the price of $649, this is it. You may claim that this is an error but you really need to explain all the circumstances to your solicitor so they can properly assess your prospects.

If you signed a standard contract, you have the right to a final inspection within 7 days before the settlement date. You do not have the right to to access the property otherwise.

I'm assuming that when you say "The new lawyers are no good but they have at least stopped release of 10% for my benefit" you mean that the vendor has requested the deposit to be released and your solicitor has objected. This may or may not be a valid objection. Anyway, the deposit will be released to the vendor at settlement whether you like it or not.
 
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Rod

Lawyer
LawTap Verified
27 May 2014
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Most of the issues are created by you and you do not have the right to attempt to fix them AFTER the signing of the contract.

No point blaming the conveyancer or lawyer1 or lawyer2.

You need to appreciate that purchasing land is a big deal and if you do not take your time and perform your due diligence BEFORE purchase then you have no-one to blame but yourself.

There is law around 'inclusions' with a sale of land but most times it is not worth fighting over.

1. You signed at $649K. You are obligated to pay $649K to the Vendor. You may have a case against the agent for $1K, but having signed the contract after the auction doesn't help you.
2. They don't have to allow you onto the property for measurements unless you do it at the final inspection. Alternative is to purchase, move in and take measurements. If measurements are wrong you MAY have a remedy but worry about that after you settle.
3. In Victoria by law you are entitled to a final inspection before settlement. As Luisa says - within 7 days of settlement.
4. Remind them the law gives you that right. Damages can be sought from the Vendor if they refuse a final inspection. Get your lawyer to write the other party a letter.
5. Not relevant. You bought at auction
6. Not relevant. And many properties are sold at 100% land value.
7. No comment
8 No law says you can't hope for the best. The Vendor's obligation only extends to giving you the property in the same condition as it was at auction.
 
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Clancy

Well-Known Member
6 April 2016
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2,289
I think what the OP is saying, is that because they do not know what the inclusions are, and not being able to inspect, that creates a high opportunity/temptation for inclusions to be removed because the OP would never know?
 

Rishi J

Well-Known Member
29 November 2017
20
0
121
You may claim that this is an error but you really need to explain all the circumstances to your solicitor so they can properly assess your prospects.
The lawyers have sent them a letter. The response was they asked 10 % to be released and then they will adjust the 1k at settlement. I did not accept the offer of 1k reduction in exchange of 10% release - my lawyer suggested I accept te offer, but I did not (They had sent me section 27 to release the 10 % deposit, which I refused to sign).
 

Rishi J

Well-Known Member
29 November 2017
20
0
121
Most of the issues are created by you and you do not have the right to attempt to fix them AFTER the signing of the contract.

No point blaming the conveyancer or lawyer1 or lawyer2.

You need to appreciate that purchasing land is a big deal and if you do not take your time and perform your due diligence BEFORE purchase then you have no-one to blame but yourself.

There is law around 'inclusions' with a sale of land but most times it is not worth fighting over.

1. You signed at $649K. You are obligated to pay $649K to the Vendor. You may have a case against the agent for $1K, but having signed the contract after the auction doesn't help you.
2. They don't have to allow you onto the property for measurements unless you do it at the final inspection. Alternative is to purchase, move in and take measurements. If measurements are wrong you MAY have a remedy but worry about that after you settle.
3. In Victoria by law you are entitled to a final inspection before settlement. As Luisa says - within 7 days of settlement.
4. Remind them the law gives you that right. Damages can be sought from the Vendor if they refuse a final inspection. Get your lawyer to write the other party a letter.
5. Not relevant. You bought at auction
6. Not relevant. And many properties are sold at 100% land value.
7. No comment
8 No law says you can't hope for the best. The Vendor's obligation only extends to giving you the property in the same condition as it was at auction.

Can I hold back the 5K for any damagers/missing incluions ? I believe the law allows for the same.

2. I'd prefer to not sign anything unless I am covered. I cannot hope to get any help from them unless I have my back covered legally.
4. I will ask my lawyer to send them a letter, however, the lawyer is trying to charge me lots for each query.

Thanks a lot !
 

Rod

Lawyer
LawTap Verified
27 May 2014
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I think what the OP is saying, is that because they do not know what the inclusions are, and not being able to inspect, that creates a high opportunity/temptation for inclusions to be removed because the OP would never know?

The law has some rough definitions of fixtures and chattels. Fixtures need to stay with the property while the vendor is allowed to remove all chattels. Suggest you talk to you lawyer about what category items can be in. Having photos helps alot. For instance in one house a light fitting can be a chattel, while a feature chandelier in another house can be a fixture. Hence the need to agree on items before signing a contract.
 

Clancy

Well-Known Member
6 April 2016
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I am not even sure if it would be illegal for them to remove all the inclusions they felt like removing as long as your still getting the product you paid for, as described to you in the ad/paperwork that you have?

Ok for example, let's say a different buyer inspected the property and was informed their was a shed and saw the shed. He came to the auction bidding on a house that comes with the shed.... If the shed is not otherwise in the ad for you to see, you are standing next to him bidding for a house that does not necessarily have a shed because you have not seen it/not been informed of it.... They could remove it if they wanted, and not break the law?