We bought a house settling on the 5th Sept. There was a requirement for 10% deposit at the due date (due to bank release delays) we only had 7% available. So we asked if they would accept that with a bond for the 3%. They did but then indicated they would require to stay in the property for an extra month. The issue we have is they expect to stay without any cost. We will incur short term rental, removal storage and other costs. Can we either force them to move at settlement or enforce some level of compenation?
VIC Settlement agreements
- Thread starter Donald Taylor
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What is in the contract? 10% or 7%?
If 10% is in the contract, then you are seeking a variation and the other party does not need to agree to the change.
Without seeing the wording and knowing if the 7% is a separate agreement to the extra month, or a condition of the 7%, it is hard to know.
If 10% is in the contract, then you are seeking a variation and the other party does not need to agree to the change.
Without seeing the wording and knowing if the 7% is a separate agreement to the extra month, or a condition of the 7%, it is hard to know.
They agreed to 5% as long as funds where released immediately. We released 7% and provided a bond guarentee for the full 10%. They agreed to proceed on that basis. They did send an email request to extend their stay by one month. We didnt agree but i would be happy to do this with a level of rental compensation. They are insisting it free. If i had of known this i would have allowed them to rip up the contract and moved.
Can i go back and insist on a lease agreement that is binding. Even if its $0 rental i inclined to make it as difficult as possible now due to the unreasonable nature to the requst. That way i can aleast get a fully refundable bond incase they dont leave the property in good condition.
Can i go back and insist on a lease agreement that is binding. Even if its $0 rental i inclined to make it as difficult as possible now due to the unreasonable nature to the requst. That way i can aleast get a fully refundable bond incase they dont leave the property in good condition.
I'm still unclear if the sale contract was amended or if the variation is post contract. And how long after the release of the deposit did they ask for an extra month?
My impression is the seller can't insist because it is not part of the contract, or part of the agreed variation. If they refuse to settle you sue them for non-performance.
It is not unreasonable for them to cover your extra costs when they want a delay.
You should be asking your lawyer how best to handle this situation.
The 10% deposit was made before the deadline but consisted of Cash and a Deposit Bond. If we couldnt make the 10% we where agreeable to some negotiation on timeframe. But as far as we are concerned we met the contract conditions so the contract as is stands. They have tried to insist that they stay in the property the extra month regardless and at $0 rental. Obviously this is not just being difficult its being beligerant IMO, i would have been happy to work something out with them but they are just being totally unreasonable.
The issue is we had the month on the table if we could only raise the 5% in the timeframe required (it was a delay with the bank releasing all the funds intime) we managed 7% with the Bond to meet the full 10% and released the cash before the required time to them as they request as a sweeteener. So i guess the contention is the Bond, which they accepted in kind. Can they assert we have not met the contract, i am assuming they cant but it seems a grey area.
In any case i am not willing to move without a level of compensation and a legally binding lease agreement and i am now inclined to sticking to the contract settlement date.
Do you think i have a case to push here or is the Bond a contestable condition.
The issue is we had the month on the table if we could only raise the 5% in the timeframe required (it was a delay with the bank releasing all the funds intime) we managed 7% with the Bond to meet the full 10% and released the cash before the required time to them as they request as a sweeteener. So i guess the contention is the Bond, which they accepted in kind. Can they assert we have not met the contract, i am assuming they cant but it seems a grey area.
In any case i am not willing to move without a level of compensation and a legally binding lease agreement and i am now inclined to sticking to the contract settlement date.
Do you think i have a case to push here or is the Bond a contestable condition.
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