Vendor not responding after problems found during pre settlement inspection

[property newbie]

Hi everyone, just wondering what buyers can do when you found out most of the chattles listed on the agreement doesn't work? The vendor and his lawyer is not responding to any form of communications from our side. Settlement day is approaching soon. Eek.

[Maccachic]

What did your lawyer advise?

[Wayne]

That's where I'd start

[cube]

Settlement day is approaching soon. Eek.

There's your leverage, right there. Don't settle (or withhold a reasonable portion) pending resolution of the issues raised in our letter dated the xth June 2015 .....

[Wayne]

Yes - you need the letter dated xxx hence the suggestion to ask your lawyer

[klauster]

I always do a settlement inspection on settlement day before giving my lawyer instructions to settle or not. I would withhold a certain amount as compensation or give a time frame to rectify the problem with a delayed settlement. It has worked twice.

[Rosco]

Hopefully a lawyer will respond. But I have a feeling that withholding a certain amount is breaching your agreement, and not quite right. Also that not settling because of this is breaching your agreement, and not quite right.

Ross

[donthatetheplayer]

Are you sure they don't work? There may be a "trick" to get some things to work (just had this situation with an oven in a property I bought).

Is there any case law supporting the need for chattels to work? Did they work at the time the contract was formed? Did you have them checked by a professional? Do you have evidence of this? If the chattels are there it sounds like the vendor is honouring the agreement.

If you don't settle or withhold funds you may find yourself in breach of the contract and subject to penalties.

[Damap]

From a legal perspective unless your agreement fine print states that chattels must be in working order you have to settle, simple as that.
If you withhold payment or don't settle you will lose your deposit after 12 days and they get their house back.

[klauster]

If the S&P agreement specifies chattels and conditions (I always attach a chattel list) and the vendor breaches those conditions, I don't have a problem to withhold money in lawyer's trust account.
In one case the vendor did not fix a leak and had the wait 2 years until the money was released.
Get the conditions right.

[Damap]

Ninth edition has this in it:

"6.2 The vendor warrants and undertakes that at settlement1) The chattels are delivered to the purchaser in reasonable working order, where applicable, but in all other respects in their state of repair as at the date of this agreement (fair wear and tear excepted) but failure so to deliver the chattels shall only create a right of compensation."

[chrisgoh]

If the chattels replacement or repair are minor, I usually don't bother.

[Wayne]

Hopefully a lawyer will respond. But I have a feeling that withholding a certain amount is breaching your agreement, and not quite right. Also that not settling because of this is breaching your agreement, and not quite right.

You would be in breach to not settle as it isn't serious enough.
Withholding some funds is another story.

[klauster]

if there is a proof - chattels create a right of compensation

[Wayne]

if there is a proof - chattels create a right of compensation

Indeed they should.