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House sold with vacant possession ignoring fixed term agreement

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  • House sold with vacant possession ignoring fixed term agreement

    Hi,

    The house has been on sale for a while and we have had numerous problems with the estate agent wanting access with virtually no notice. So I was quite happy to hear it has been sold.

    However, we now know that it has been sold as vacant even though we have another 6 months on a fixed term agreement. Obviously we have a right to stay till the end of the agreement, but I am wondering what would be a reasonable offer of compensation from the owners if they want us to move out. Rough quotes for moving companies seem to be around $2000 - which include packing as I am pregnant. Also the price of rent in this area seems to have increased by anywhere between $20-50 a week.

    I would appreciate a landlords point of view.

    Thanks
    Last edited by cube; 10-04-2010, 10:53 PM.

  • #2
    Boy, is this ever a problem for the vendor!!

    You are entitled to stay at the property until the end of the FTT, with no change to the rental amount.


    The Vendor cannot get you out, unless you agree to move.

    Compensation?? Hmmm. My first thoughts are that you could ask for moving costs, disconnection/reconnection costs (phone/water/mail etc). If you cannot find an equivalent property at the same price ie rents have gone up by, says $50/week, you could ask for the vendor/LL to pay the difference between the "old" rent and the "new" rent where you are moving to.

    But again, YOU DON'T HAVE TO MOVE.

    The vendor and lawyer should not have signed a S&P Agreement with Vacant Possession.

    Someone boobed - big time.
    Patience is a virtue.

    Comment


    • #3
      Totally agree with Essence, someone has made a HUGE mistake, you are well within your rights to stay at the property until your fixed term has ended. If they owner did want you out he would have to agree to all your demands/request, otherwise sit tight.
      Liz

      Comment


      • #4
        Been thinking about this.

        Don't do anything. Don't move, don't contact the REA, don't contact the owner - NOTHING.

        If you're still there on settlement day, - it's the problem for the purchaser (if they want to move in) or the vendor (by giving vacant possession et al).

        If someone contacts you (REA, owner) advise them that you're NOT moving. Don't get into a discussion with them at all. It doesn't matter that they'll threaten legal consequences, there aren't any - for you!!

        Let the arguments be between the vendor, vendor's lawyer, purchaser, purchaser's lawyer and REA.

        Stand in an oasis of calm.
        Patience is a virtue.

        Comment


        • #5
          Before you do anything I would check whether the purchasers are aware of your tenancy. It may be that they are aware of it and are happy for you to stay until the expiration.

          I say that because you don't want to start rocking the boat only to find that there isn't in fact an issue. That may not be a good look for your new landlord.

          Apart from that, I echo essence's posts.

          Comment


          • #6
            In the interests of common sense and consideration I would work out what is a fair compensation for yourselves. As you say 2K to move plus $50 a week by 26 weeks plus inconvenience etc. I would have thought maybe 5 grand was fair enough. No skin off your nose and it's a nice little bonus just for shifting early.
            "Stay put and tell em to go to hell" is unproductive and childish. If you're pregnant you want to get moved early and resettle while you're up to it.

            So I would contact the vendor and make sure they are aware that you are on fixed term and 5K would make you go away. They can budget for it if they know in advance.

            Comment


            • #7
              Thanks for the replies.

              To clarify things the estate agent walked into our letting agent telling her to give us 42 days notice to leave - even though she knew we had a fixed term. The letting agent did not do that of course but is looking for a solution.

              Also, we did say that we would be open to discussing the fixed term etc when we were first told about the sale - but they haven't consulted us about this at all, until after the sale was agreed!

              At this point they seem to think that if they pay for the rental of a van (not movers, just a van rental from what I understand) that this would be adequate compensation.

              Comment


              • #8
                Originally posted by [email protected] View Post
                In the interests of common sense and consideration I would work out what is a fair compensation for yourselves. As you say 2K to move plus $50 a week by 26 weeks plus inconvenience etc. I would have thought maybe 5 grand was fair enough. No skin off your nose and it's a nice little bonus just for shifting early.
                "Stay put and tell em to go to hell" is unproductive and childish. If you're pregnant you want to get moved early and resettle while you're up to it.

                So I would contact the vendor and make sure they are aware that you are on fixed term and 5K would make you go away. They can budget for it if they know in advance.
                Funny you should say that Dean I am in the middle of a disagreement with a purchaser at present for a similar but different matter.
                I have offered what I feel is a fair and reasonable offer to the purchaser which enables them to be better off and gain possession early. However they appear to want several times more and playing hard.

                From my experience working through the issue with a bit of give and take from both parties and a fair offer is best. Playing hard and sticking to your guns wanting the world becomes unproductive as Dean said. Investing is much more enjoyable and ethical if both parties walk away happy.
                More of my story to come.

                Comment


                • #9
                  As you can see from the threads posted the rental of a van is NOT adequate compensation, you need to sit down with the agent and let them know exactly what you need to move out of the property early, this is your right and your are entitled to it, if they don't agree then you just sit tight.

                  Comment


                  • #10
                    If I was in your position I would be asking for all of the agents comission on the sale and threatening to go to the REAA.

                    Don't muck about with moving vans and compensation, or speaking to the agent just tell the person you have a cotract with ( the vendor) that your not moving.
                    The purchaser won't be able to settle and will start to bill the vendor penalty interest, as is their right because the vendor can not offer the property vacant as they have promised on the contract.

                    Stand your ground, your in the right and they will abuse your rights given half the chance.

                    Comment


                    • #11
                      I have to say all you guys are renewing my faith in LLs, really good to hear the support for this young lady, and on that I concur with everyones comments, sit tight and tell the property manager that you are enforcing the contract and if anyone victimises you you will contact T/Services and the Police, you are expectant, and your first priority is that beautiful baby you are carrying, do not allow them to stress you. The grandad in me is showing. Please keep us all posted. Good luck, oh and, CONGRATULATIONS.

                      Comment


                      • #12
                        Originally posted by FrustratedRenter
                        At this point they seem to think that if they pay for the rental of a van (not movers, just a van rental from what I understand) that this would be adequate compensation.
                        No way is that sufficient compensation, especially when you are pregnant. Work out what you want to happen and go down that path. You have them over a barrel!
                        My Profile

                        Comment


                        • #13
                          Steve and Dave have it right, Dean has it wrong.
                          It is not about how much will it cost you as compensation it is about what it will cost the vendor and the principle / licensee of the Real Estate agency that permitted his sales person to write a contract like that.
                          What can happen and does often is the contract will fail.
                          The real estate agent will ask for their commission. The purchaser will want his deposit back. The vendor will have to pay the commission despite the sale not proceeding and might have to pay some sort of compensation to the purchaser.
                          You need to find out what the sale price was and the associated commission plus GST.
                          Out of that nasty sum of money you can ask for a cut in return for moving out.
                          It is not your problem about who pays it be the vendor or the incompetant ignorant sales person or his principle or dare I suggest the vendors lawyer.

                          I would be looking for around $10,000 to $20,000 dependending on the value of the property. Certainly not less than half the commission.
                          Remember the commission is split 50% between the selling agents and the real estate firm. Remember you are not party to the sale and purchase so you have no right of audience at a real estate agency disputes process.

                          Keep us posted on the outcome. Despite the beating of chests about the new system for real estate agents nothing has really changed at the grass roots level. (in my biased view)

                          Comment


                          • #14
                            Thanks again for all your replies. I am not completely sure how much the estate agent has agreed to regarding the sale, but as far as we are concerned we are staying put until they make a reasonable offer. At this stage they haven't been back in touch - I think they might think we will cave in and move out so that we won't have to move with a young baby in 6 months time. Perhaps I am wrong though, and everything will be sorted out amicably.

                            I will keep you informed though, as it sounds like you all have strong feelings on the subject!

                            Just out of interest, what percentage is the usual commission?

                            Comment


                            • #15
                              Originally posted by FrustratedRenter View Post
                              Just out of interest, what percentage is the usual commission?
                              The last one I did was 4.5% plus $500 plus GST.
                              On a $400,000 house that is $20,000

                              I would not go counting your chickens before they hatch.
                              Remember it has nothing to do with your reproduction.
                              You can not expect people to make special provision for the baby.
                              It is about contracts and the law.

                              The process is for them to send you a letter asking you to leave regardless of the legality of that. At the moment you have not said you have that letter. After that letter expires, regardless of its legality, presumming you are still there, the next step is for the landlord to apply to the Tenancy Tribunal for a possession order. It is up to the tenancy adjudicator to decide if you can stay or not.
                              The adjudicator can award hefty fines for landlords not following the law but nothing like you can get at a private treaty.
                              If the adjudicator decides you have to leave then normally you will be given something like a few days to get out.

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