VIC Vendor Delaying Settlement - Keeping Caveat on Indefinitely?

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Branded

Member
4 August 2017
3
0
1
Hello,

I have a vendor who has delayed settlement indefinitely just days before settlement day after a three month period. I'm in Victoria.

I strongly believe the vendor is trying to get me to pull out so he can sell it to someone else for more money. I will not be pulling out, however I would like to avoid court for now. I have offered to pull out of the contract if I am compensated for the rise in house prices over than last three months, which is around 20k in the area for the same type of property. This is mainly due to Stamp Duty savings rising prices. I have given them the option of settlement or compensation, but they have not responded.

The vendor's solicitor has also ignored all my solicitor's calls and emails every day since he announced the "delay" a week ago.

We have issued a default notice and put a caveat on the property today, which should take effect early next week.

Since the contract is still binding, can the vendor easily remove the caveat? I was wondering if I could simply leave the caveat for months/years until he wises up and settles or offers an incentive for me to pull out. I read some article that says that they can apply then I would have to prove I still need it. Is that true? Can the vendor's solicitor still apply to have it removed even though the contract of sale is still in place? Would they be able to force me to go to court for me to keep the caveat on?

I am hoping that I can just keep the caveat on until he's forced to negotiate with me.

What other tools do I have at my disposal to apply pressure on the vendor to stop playing games without going to the Supreme Court?

Thanks.
 

Rod

Lawyer
LawConnect (LawTap) Verified
27 May 2014
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www.hutchinsonlegal.com.au
Can the vendor easily remove the caveat?

No.

they can apply then I would have to prove I still need it. Is that true?

Yes

Can the vendor's solicitor still apply to have it removed even though the contract of sale is still in place?
I am hoping that I can just keep the caveat on until he's forced to negotiate with me.

Yes, though if you fight it they'd likely lose.

Would they be able to force me to go to court for me to keep the caveat on? I

Only if you want to fight it.

I am hoping that I can just keep the caveat on until he's forced to negotiate with me.

Not a good idea. If you fail to act on your interests the court can say they are not important to you and say you abandoned them.

What other tools do I have at my disposal to apply pressure on the vendor to stop playing games without going to the Supreme Court?

Not sure you have any other legal alternatives.

Your solicitor should be the one you ask for questions like these. The above answers are only my opinion/thoughts and is not advice.
 

Oh my god

Member
19 October 2017
4
0
1
May I know how's your case going?

I have a similar case to you and I will sue him to court, we have to protect our rights. This is too unfair to us.

I hope your case had settled with a fair outcome.
 

Tripe

Well-Known Member
22 May 2017
229
14
619
You have done the correct thing in putting a caveat on the property.

Was the sale done with a realestate agent? if so, the vendor will most likely be liable to pay the real estate agents commission, regardless if the sale proceeds or not.
 

Oh my god

Member
19 October 2017
4
0
1
You have done the correct thing in putting a caveat on the property.

Was the sale done with a realestate agent? if so, the vendor will most likely be liable to pay the real estate agents commission, regardless if the sale proceeds or not.
Yes with the real estate agent.

My case is even worst. They want to increase us more than 30% of the original price in the contract. Not 10%!

Put a caveat and then court proceeding.
 

Clancy

Well-Known Member
6 April 2016
973
69
2,289
I am surprised how much of a common problem this is! My sister bought a block of land but its not finalized until the owner builds a driveway. The catch is, the owner wont build the driveway until he sells the other properties there.

So my sister was completely trapped, and who knows how long before he sold the other properties? It could be years and years, we don't know! Disgusting these people are able to freely get away with holding up the sale however long they feel like.
 

Tripe

Well-Known Member
22 May 2017
229
14
619
I had a real estate nightmare a few years ago when I sold my house, the advice I got from the conveyancing lawyer, was there was a unwritten rule of 14 days past the settlement date, that the sale could settle, if it wasn't settled after 14 days then legal action could be considered
 

Oh my god

Member
19 October 2017
4
0
1
I am just wonderingif I leave the caveat for months, what the vendor can actually do with that property? They can't get money if we don't do anything.

They are definitely not doing their best endeavors to get the plan of subdivision registered within the contract period. They delayed the settlement by purpose to wait for the sunset clause sets. Then email us saying they want to increase more than 30% from the original price. Spoke to many lawyers and they said the vendor can't do that. They even hold my deposit in their trust, and get all the interests.
 

Branded

Member
4 August 2017
3
0
1
May I know how's your case going?

I have a similar case to you and I will sue him to court, we have to protect our rights. This is too unfair to us.

I hope your case had settled with a fair outcome.


Hello,

I cannot reveal too much at the moment, but our case is very strong and we are not going to give in, ever.

Unfortunately, your case is different to mine as we do not have a sunset clause. It's a very standard REIV contract and the vendor has decided to ignore us and stay silent, hoping that we will go away. We will never go away, whether it takes weeks, months or years.

The only recommendation I can give you is see a good property lawyer and know where you stand. Also, see if you can do some investigations yourself to find out whether the vendors are purposely delaying the settlement to take advantage of the sunset clause.

Has the sunset clause expired yet? If not, speak to a good property lawyer to see how strong your case and take the b******s to court. You have to be tough with these crooks.

Kind regards.
 

Oh my god

Member
19 October 2017
4
0
1
Hello,

I cannot reveal too much at the moment, but our case is very strong and we are not going to give in, ever.

Unfortunately, your case is different to mine as we do not have a sunset clause. It's a very standard REIV contract and the vendor has decided to ignore us and stay silent, hoping that we will go away. We will never go away, whether it takes weeks, months or years.

The only recommendation I can give you is see a good property lawyer and know where you stand. Also, see if you can do some investigations yourself to find out whether the vendors are purposely delaying the settlement to take advantage of the sunset clause.

Has the sunset clause expired yet? If not, speak to a good property lawyer to see how strong your case and take the b******s to court. You have to be tough with these crooks.

Kind regards.
Thank you for your advises!

Yes, don't give in, ever! I have seen few lawyer, and the lawyers all suspected this guy is delaying the settlement by purpose. We went to the site every week, from demolishing until the completion, we have all the photos taken every week, but he just don't want to get the plan of subdivision registered. Until weeks after sunset clause expired, he sent an email and want more money. Otherwise, he will refund deposits to us and terminate the contract with us.

According to lawyer, there are risks but we have a very good chance of winning.

Did you mean they haven't been in touch with you since caveat has been put?