WA Withdrawal from Land Contract - Refund Deposit?

[Derek]

I am in the process of withdrawing from a land contract and have advised the developer to refund the initial deposit of $10,000. Below is the response I received from the developer.

"We have received your request to withdraw from your contract of sale for Lot X Whistling Grove Estate. Please be advised that as your contract is unconditional (finance condition being satisfied on 19 March 2014), we are under no obligation to allow you to withdraw. However, we have passed your request on to the seller, and they have advised us that they will only cancel the contract if you forfeit the deposit in full. If you are willing to accept these terms, please notify us, and we will prepare a Mutual Termination form to cancel your contract "

Would appreciate any assistance in getting a refund of my deposit.

 

[Ivy]

Hi Derek,

Unfortunately WA doesn't have a cooling off period once the contract of sale has been signed (unless the parties insert one into the contract). So the vendor is correct in that they aren't under an obligation to let you withdraw from the contract if you have simply changed your mind.

Is there some more information that you can give us regarding the situation? Was there something wrong with the property that you didn't realise before signing the contract? Were you told incorrect information?

 

[Sophea]

Hi Derek,

Yes unfortunately the circumstances in which you can break a contract for the sale / purchase of land are limited to situations where there has been for example some gross misrepresentation about the the property or some condition of the contract being incapable of fulfilment. A mere change of mind is not sufficient reason to break the contract and receive your deposit back. It is after all the purpose of a deposit - a security demonstrating your commitment to the deal.

 

[Derek]

Guys thanks for the valuable inputs. I had to withdraw from the land contract due to delayed title deeds and also an increase in building cost as a result of the delayed titles. Land contract was sign in January 2014 expected titles date at the time was October 2014. Based on this I signed a building contract in March 2014 for a fixed price held till November 2014. Currently the land title is still in delay and the builder's variation cost has increased by 40% from the initial price as the held price expired end on November 2014.

Currently I have withdrawn from the building contract without any issues and will proceed with withdrawing from the land contract since I can not trust the developer on the titles available date accepting that the developer keeps my deposit.

 

[Ivy]

Hi Derek,

Are you saying the settlement has been delayed? If so, there is some precedent for pulling out of the contract in situations such as these, if it is an unreasonable delay.