How can I terminate a contract after cooling off
Recently my elderly folks decided they wanted out of their big home, so they asked me to take them to a new set of units being built.
Well everything happened a little quickly and I couldn't stop them, they put a deposit on a Unit off the plan.
They don't have a hugh cash reserve, and like most of us their money is all tied up in their home, which they own out right.
So anyway after several warnings I gave them about the cooling off periods, they were confident they could sell their house before settlement, and assured me they could deal with the nerves, while waiting to sell their home. After all they have about 9 months to sell.
Well since then, they've decided they don't like the idea, naturally the 21 day cooling off period has come and gone along with the condition to clauses, however they still have not paid the full 10% deposit, which means they are in breech of the contract, so I'm told.
The reason for the change of heart is the stress is making them ill, given they are not in the best of health to start with, which is of great concern to me.
The vendor (or agent for the Vendor) is reluctant to terminate the contract, and tell's me basically we're stuck with it ? on the other hand I know they are in breech of the contract, so why wouldn't the vendor just keep the $1000 and move on, after all the property isn't even built yet
with plenty of time to sell it several times over, and just let an elderly old couple off the hook ?
Got any advice on what I can do to help them get out of this ?
4 Comments
The best advice you will receive is explain the whole situation honestly to your solicitor and see what course of action they recommend. Calm and caution is always the best way when under stress.
Cheers,
Daniel
Dear samdb,
Dear samdb,
This is a terrible situation, When developers sell property “Off the Plan” they usually need a set amount of sales before a bank or other institution will finance the build.
Without knowing the whole situation it could be that the developer is relying on your parents purchase to gain finance, however this is not your main problem.
Because you have “Exchanged contracts” (The cooling off period has expired) your parents are committed to buying the property unless they decide to forfeit the Full 10% deposit to the vendor. I have seen this situation before...There is no out.
Your parents solicitor would have (or should have) explained this to them at the time of purchase, from the information you have provided I can say without any doubt that your parents have a legal obligation to complete on the sale it would seem to me that if they no long want the property there only course of action maybe to put it straight back on the market and sell it.
The reason why they won’t take your $1000 deposit and move on is because they are entitled to the Full 10% of the purchase price which i am quess is an enormous amount of money.
You mentioned that THEY are in breach of the contract but you haven’t elaborated on that, if you would like to explain that part to me i may be able to advise you further.
I’m sorry to be the bearer of bad news I am very experienced in this type of situation I am a Real Estate agent from Sydney,if you would like more detailed information or advise please contact me direct on 02 95293822 or on the mobile 0412 567 784
Hope this helps
Adam Halacas
Senior Executive
CENTURY 21 BAYSIDE
0412 567 784 24 hours
26 Clareville Ave Dolls Point N.S.W 2219
PH:95293822 Fax:95292252
"YOUR AWARD WINNING AGENT"
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Not the best situation to be in. Definitely will be best to take advice from the solicitor. An option may be to complete the transaction and then sell it. There may be a way to sell the unit you have committed to buy before it settles. Best to ask your solicitor about your options.