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  1. #1

    Default Vendor not responding after problems found during pre settlement inspection

    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.

  2. #2
    Join Date
    Jul 2011
    Location
    Tauranga
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    2,769

    Default

    What did your lawyer advise?

  3. #3
    Join Date
    Jun 2004
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    10,415

    Default

    That's where I'd start

  4. #4
    Join Date
    Jun 2005
    Location
    Auckland
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    5,086

    Default

    Quote Originally Posted by property newbie View Post
    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 .....
    DFTBA

  5. #5
    Join Date
    Jun 2004
    Posts
    10,415

    Default

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

  6. #6

    Default

    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.

  7. #7
    Join Date
    May 2007
    Location
    Hamilton
    Posts
    3,613

    Default

    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
    More Profit from Property? TEACH ME MORE
    Ross Barnett - Coombe Smith Property Accountants
    Proud to give the best property advice for over 13 years.

  8. #8
    Join Date
    Sep 2013
    Location
    Auckland
    Posts
    777

    Default

    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.
    “Our favorite holding period is forever.”

  9. #9
    Join Date
    Jul 2012
    Location
    Tavua, Fiji
    Posts
    3,347

    Default

    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.

  10. #10

    Default

    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.


 

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