Termination of unconditional property contract

[Bas]

My partner and I entered into a property agreement in QLD as buyers and made an offer after a first viewing in early April. We decided to forgo the pest and building inspections given that we have limited time as we have to move out of our current home and the contract was signed with the condition of finance approval. The contract date was on a Sunday but the copy wasn't delivered to us until Monday. After the contract was signed we asked to visit the property again as it is a residential rural property and we wanted to inspect the fences and other areas we did not check during the first inspection. We were told that we could not visit the property as it was a mess and that we had to wait until the contract was unconditional.
Given that we could not enter the property we sent questions to the Seller via Agent and gained some short responses.
The Solicitor of the Seller called on the date for finance approval and gave threats of being sued if we do not meet the deadline of the finance approval, which we intended to meet.
At the bank loan meeting and finance approval we were informed that the valuation report came up with possible asbestos and we then asked about that matter, hearing that some renovations were done and some asbestos removed at the time. Following the positive financing of the loan from the bank we asked to visit the property and once we were allowed with the Agent we found a person moving furniture out slowly, a trolley and camping chairs on the wood floors and a mess in the house. We wrote and asked via the agent if a person was living in the house who is not the owner and a possible tenancy in place. We have now been told that we can only communicate via the seller's solicitors. We are not answered on these questions.
We want to terminate the contract. We do not feel comfortable with moving to the small rural town because of the hostility that surrounds this agreement. We are moving towards settlement, have enlisted conveyancers and are following the course but want to terminate and want some advice.

 

[Docupedia]

Assuming you are using the standard REIQ contract:
Attempting to terminate an unconditional contract without grounds will usually result in one of three outcomes:
(a) termination is accepted and your deposit is forfeited,
(b) termination is not accepted and the seller requires you to complete the contract (and may sue you for specific performance - which requires you to complete it), or
(c) termination is accepted and you get sued for damages, potentially including any loss on resale.

You may have an angle around the asbestos, speak to your conveyancer.

 

[Bas]

Thank you for your response. Though the Seller has not breached an essential term, we were not permitted to enter the property until the contract became unconditional which appears to be inducement. We had no intention of terminating the agreement so we were surprised by their unwillingness to allow a simple request. When we made the contract unconditional with finance approval asked again and were allowed to re enter the property with the agent for a second time, there appeared to be a person living there on a mattress in the house with camping chairs and a trolley in the house. Little respect was being given to the house (now covered by our insurance). We asked if the seller had allowed a tenant to live there and we are being ignored. We entered into the contract in good faith and don't believe the seller has. We think that by possibly allowing a tenant in, the Seller may be in breach of a non essential term. We are ordered to only communicate to the Seller's Solicitor (not even to talk to the agent), the Solicitor won't answer queries and the purchase now feels purely combatative. All communication and good will has ended towards us. We'd be prepared to forfeit the deposit but as we have done everything required we hope to avoid paying the Seller's costs. The property was not advertised as under offer or under contract until we requested it after it was unconditional and so there are likely other buyers the Agent can turn to for a re sale.

 

[Bas]

Circumstantial (maybe relevant if this went to court)... the property itself is in a tiny rural community with quite a lot of pretention and high priced properties. (We chose it given our time restrictions and the furore in the real estate market at the moment. The property we're buying is not in the best shape and particularly visible with her antique furniture now removed). The Seller herself is now living in a house on the next road and very nearby. The Agent will be finding her a new property with the big amount she'll make on this sale. It doesn't lead to a comfortable situation if we go there to live. It will likely go back for sale if we go ahead though we'll have a small town attitude to deal with there throughout even that process.