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Leon
Leon, Solicitor
Category: Australia Law
Satisfied Customers: 42671
Experience:  BEc Dip Ed, Dip Law (SAB) MTax (UNSW)
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I sold a house at auction and the reserve price was met. The

Customer Question

Hi,
JA: Hi. What do you want help with?
Customer: I sold a house at auction and the reserve price was met. The bidder signed the 66W and contracts were exchanged The trouble is: the agent took 0.25 per cent of the deposit and not the 10 per cent deposit. This is the second week after the sale and the buyer has not submitted the 10 per cent deposit My question is: can a solicitor place a caveat on the purchaser's house? How can I recover the deposit (to which I'm legally entitled) plus damages. The buyer should have checked his financial position prior to placing a bid
JA: Because real estate law varies from place to place, can you tell me what state this is in? When we are ready I'll take you to the appropriate web page. Has anything been filed or reported?
Customer: NSW
JA: Anything else you want the lawyer to know before I connect you?
Customer: I would like to know the maximum damages that can be claimed. The differential amount. The trouble was the house was previously auctioned by another agent and the house had been undervalued. We got the reserve price, however, the buyer started to give excuses after the sale. What is the best step for me (as a vendor) to proceed?
Submitted: 25 days ago.
Category: Australia Law
Expert:  Leon replied 25 days ago.

My name is ***** ***** I am a NSW Solicitor. I will do my best to assist you with your question.

Expert:  Leon replied 25 days ago.

Good Afternoon

The agent was wrong and it is a requirement of the contract that the 10% be paid on exchange, at the time of the auction, or the purchaser is in breach of the contract.

No they cannot put a caveat on the purchasers house but they can threaten to terminate for non compliance of the contract.

They are in default.

The issue will raise its head when settlement comes around and if they do not settle and you serve a notice to complete and they fail to to comply and you terminate then you have to sue them for the money.

Until settlement there is nothing you can do apart from telling them they are in default and seek to terminate if they do not pay the 10%.

If they refuse to pay and then then do not settle you can sue for the whole lot with interest as per the contract.

But at present all you can do it threaten with with termination because they have not paid the deposit and no compiled with it.

I hope this makes sense and is of assistance. If there is nothing further

thank you for using my services.

If I have missed anything, or you have any further questions please let me know

If there is anything else in the future please do not hesitate to ask.

Please do not forget to leave positive feedback.

Regards

Leon