should buyers pay for vendor's agent's commission when the sale didnt go through?

[ScottSI]

Hey scott, how do you get a charging order and bankrupt them? For now, we've cancelled the agreement but still looking to claim the legal costs from them. Im not sure if disputes tribunal will be effective in doing that. Have you heard about it being effective before?

Hi - Via the courts so can be through disputes or district court.

Search "Charging order NZ " on google and should link to the courts paid and they have a guide.

Bankrupting someone costs money but the fair of it can help.

Little rusty on process as few years back and most people I chase now for TT debt have no assets.

[speights boy]

Question.
If you bid and win at auction, are you forced to pay the deposit stipulated ?
IE: If you then tried the $1,000 bit, are you in breech ?

[epoh]

Hi - Via the courts so can be through disputes or district court.

Search "Charging order NZ " on google and should link to the courts paid and they have a guide.

Thanks scott! I've just googled "charging order" and it seems to be similar to the caveat that I've lodged on the property. Would it still be necessary to get a charging order then?

[ScottSI]

Question.
If you bid and win at auction, are you forced to pay the deposit stipulated ?
IE: If you then tried the $1,000 bit, are you in breech ?

You can change conditions at auction also but harder, yes and you may say as stated above - To be held by the purchasers lawyers trust account as an option.

Don't generally argue with banks at mortgagee sales though as they don't listen and high chance sale happening.

1 Reason I dislike auctions and do generally avoid them.

I always change tenders (including HNZ) to $ 1000

[ScottSI]

Thanks scott! I've just googled "charging order" and it seems to be similar to the caveat that I've lodged on the property. Would it still be necessary to get a charging order then?

Bit rusty as while since I did. To progress to a bankrupt step you need confirmation of debt from memory and this can be done a few ways. We had a money order from the Disputes Tribunal in this case.


I think you then issue a statutory demand notice then can file for bankruptcy? Hopefully someone else can add as no expert.

Davo36 might be able to help here as I think he has done this lately for a commercial tenant and is probably more in the know.

[speights boy]

You can change conditions at auction also but harder, yes and you may say as stated above - To be held by the purchasers lawyers trust account as an option.

But that would have to be negotiated before bidding ?
If not, you would be held to the auction Ts & Cs ? ...ie most likely 10%.

[ScottSI]

Yes prior - Tried to edit but wouldn't accept for some reason.

[sidinz]

About the bank releasing title to the property:

In my recent sale, my bank sent an indicative statement to my solicitor ahead of settlement day, setting out what funds they needed (that I had negotiated with them). Therefore my solicitor knew whether there would be a problem or not, ahead of time.

Then on settlement day, the bank confirmed the figures.

[spaceman]

????....colour me confused.

The vendor has contracts with the REA & lawyer, yet both of them have taken your money....is that right????

Sounds like theft to me...............unless of course there is some clause in the S&P that lets people whom with you have no legal contract help themselves to your money.

I must confess to never reading the S&P agreement carefully enough to know what the deal is here.....but surely the deposit belongs to you and you alone until after the sale is completed.....since the sale didn't complete you should get it all back?

Would love to hear what the facts are as to whose money it actually is is this case.......seems outrageous to me that parties contracted to the vendor can help themselves to the purchasers money

cheers
Spaceman

[epoh]

????....colour me confused.

The vendor has contracts with the REA & lawyer, yet both of them have taken your money....is that right????

Sounds like theft to me...............unless of course there is some clause in the S&P that lets people whom with you have no legal contract help themselves to your money.

I must confess to never reading the S&P agreement carefully enough to know what the deal is here.....but surely the deposit belongs to you and you alone until after the sale is completed.....since the sale didn't complete you should get it all back?

Would love to hear what the facts are as to whose money it actually is is this case.......seems outrageous to me that parties contracted to the vendor can help themselves to the purchasers money

cheers
Spaceman

Hi spaceman,

Yes both the agent and lawyer have taken their share from my deposit when the sale didnt go through due to the vendor being unable to settle. It's ridiculous and there's a loophole in the law really! It would be great if someone can advise us on how we can try to claim our money back from both the agents (the commission) and the vendor (for all the legal costs).

[speights boy]

That's the legal question, surely.
Whose money was it....yours or the vendors.

Doesn't it become the vendors money when you paid it.
The vendor - effectively- used it to pay their two bills.....agent, lawyer.

Your action should be against the vendor I would have thought.

sidinz example with her bank is what I would have thought was usual, under normal circumstances.
The vendor's bank should be able to give plenty of notice before settlement day, that the sale price proceeds are sufficient to offer clear title.

[Davo36]

Bit rusty as while since I did. To progress to a bankrupt step you need confirmation of debt from memory and this can be done a few ways. We had a money order from the Disputes Tribunal in this case.


I think you then issue a statutory demand notice then can file for bankruptcy? Hopefully someone else can add as no expert.

Davo36 might be able to help here as I think he has done this lately for a commercial tenant and is probably more in the know.

Yeah I am taking a commercial tenant through the bankruptcy case. It's taking a very long time because he managed to appeal the DT decision just before Christmas, so the appeal (which he lost) wasn't held until April. So the first step is to get this judgement.

And the next step is the issuing of a bankruptcy notice from the High Court. That's where I'm at, the lawyer is dragging the chain a lot and I will have to get another one onto it if it doesn't happen shortly.

[Learning]

You can change the amount of the deposit so what's to stop you putting in your own clause ..say "the deposit remains the property of the purchaser until a successful sale is completed." Would such a clause work and keep your deposit safe? It could still be paid to the vendors lawyers trust fund but if the deal turns sour you have documented proof that it's legally still yours.

[sidinz]

Call me naive, but I thought that the whole idea of it going into the solicitor's trust fund instead of straight to the vendor was to safeguard the buyer's interests in the case of things going sour.

[epoh]

Call me naive, but I thought that the whole idea of it going into the solicitor's trust fund instead of straight to the vendor was to safeguard the buyer's interests in the case of things going sour.

Apparently it doesnt seem to work this way.. the only portion that was safeguarded in the end was the deposit less the vendor's solicitors fee and agent's commission. i've even heard that the vendor solicitor can actually transfer the deposit in his trust to the vendor if the vendor requested for it.. what a loophole.

any advice on how we can proceed to claim back the commission from the agents (since they are the vendor agents) and the legal fees from the vendors?