Question about Conveyancer's Obligations

chatterbox on 05/10/2022 - 15:20
Last edited 05/10/2022 - 22:44

So i bought a property (so to say), engaged a conveyancer and they sent me a first letter to let me know the important dates etc like finance and building and pest etc.

I was told about these in an initial letter. come the finance and B&P date and we had to take an extension as we were not able to satisfy by the date. Before the next date, i confirmed to my Solicitor about the finance condition being satisfied. He decided not to tell the other solicitor about it until B&P has also been satisfied. when both got satisfied,

The seller has said that we breached the contract since finance condition had another deposit also to be paid which i obviously forgot as there were too many things going on.

They said the deposit was not paid and were not told so they would cancel the contract and keep my initial deposit.

As i understand, my solicitor sould tell me to pay the deposit when i mentioned to them that finance is approved with bank. i would expect the solicitor to tell me if i was going to breach the contract.

My solicitor says that i was told about it in the initial letter. they say they are not obligated to tell me every single thing that needs to be done

my question is, should the solicitor not have told me to pay the deposit? they are trying to put it on me and i believe they should have reminded me about the deposit when i told them that finance had been approved.

Am I right and if so, can i take action against the solicitor or just let the initial deposit go

the seller does not want to resolve under any circumstance and has now decided not to sell.

I have agreed to have the contract terminated.

my deposit is also being refunded. It was only $5k. The seller was looking for a reason to not sell. I didn’t want to buy from them being unhappy.

Thanks for all your responses - will surely adhere to the timelines in future. Learnt my lesson.

Poll Options

45
I am in the wrong
2
Solicitor in the wrong
2
Fight it

Home & Garden

Comments

MS Paint on 05/10/2022 - 15:24

+1

Buying a house and paying a negotiated deposit/s very shortly thereafter is not common sense?
- chatterbox on 05/10/2022 - 15:30
  
  -2
  
  i paid initial deposit, but the other bit of deposit which was to be paid when finance was approved was forgotten. i would have expected my solicitor to tell me as it would breach the contract.
CrowReally on 05/10/2022 - 15:32

+5

It sounds like they told you in the letter and then you forgot to do it (because there was a lot going on).

It would have been nice of them to remind you, but they weren't required to - so it's just you in the wrong.

Sorry to hear how it all went :(
- chatterbox on 05/10/2022 - 15:54
  
  thanks mate - should have been more vigilant and on top of it - guess i'll have to cop it
AndyC1 on 05/10/2022 - 15:34

+1

So was it a solicitor/legal firm or conveyancer that you got to do the work? There is a big difference between the two.
- chatterbox on 05/10/2022 - 15:55
  
  its a large legal firm which owns the conveyancing business - so dont know which word to use here - solicitor or conveyancer
  - AndyC1 on 05/10/2022 - 16:09
    
    What is on the email that was sent regarding their fees (their being the solicitor/legal firm or conveyancer that you got to do the work)? Is it a convenancing company or a law firm?
CyberMurning on 05/10/2022 - 15:36

+2

i will never use Conveyancer again…. i feel they are really budget and dont do their job properly…. well you get what you paid for…
but the regret last for everrrrrr
skid on 05/10/2022 - 15:36

Take it as a lesson learnt. All it cost was your initial deposit. Bargain!
payless69 on 05/10/2022 - 15:42

+2

Unusual case. Usually you leave one deposit with your conveyancer and let them handle it.
If you were unable to settle by agreed dates the seller can sell to others but the amount of deposit should be visible in the contract and the solicitor has to tell you that.
If seller is in a great hurry there is a chance something is hidden. If you default the amount should have been known from the start.
dcep on 05/10/2022 - 15:44

i thought house prices still going down

the seller got a better offer ? or the initial deposit is big enough to compensate
- JimmyF on 05/10/2022 - 15:50
  
  +2
  
  Yeah its a risky thing to be doing in this market for 10%…. The seller still has to pay agent fees on both sales etc. So in a falling market, there is hardly any gains to be had doing this!
JimmyF on 05/10/2022 - 15:49

+1

My solicitor says that i was told about it in the initial letter. they say they are not obligated to tell me every single thing that needs to be done

Was it a conveyancer or solicitor? As you start out saying one and end with the other.

The seller has said that we breached the contract since finance condition had another deposit also to be paid which i obviously forgot as there were too many things going on.

Well you had been advised all the key dates, its not up to your conveyancer/solicitor to hold your hand and remind you every step of the way. As you said youself, YOU forgot to pay it, not them.

As for being in breach of the contract, have a read of the contract, there are clean guidelines and processes for them to follow before they can claim this and the amount they can withhold. But it will depend on the state and the contract wording. For example in VIC, a standard contract normally states they can only hold 10% of the sale price in breach, regardless of the deposit paid. aka if you paid 20% they can't keep it all, only 10% of the sale price.
87percent on 05/10/2022 - 15:50

+1

wheres that guy who posted the review and then got threatened with legal action to remove it??
SnowDragon on 05/10/2022 - 16:06

+2

So you satisfied B&P and Finance, told the seller and they immediately said that you hadn't paid the second deposit, we're cancelling the contract and keeping your initial deposit?

You didn't get any communication or gentle reminders from anyone that the second deposit was due when finance was approved? How much time elapsed between letting the seller know you were approved and them wanting to cancel the contract?

My solicitor spelled everything out I needed to do at the time - maybe because you went to a large legal firm they don't have a personal touch and just don't care.
- chatterbox on 05/10/2022 - 16:21
  
  there were other B&P issues gong an an then they used the finance deposit reason to terminate - this was 2 days after the b&P and finance got satisfied.
Domingo on 05/10/2022 - 16:12

+3

Agree with JimmyF saying to read the contract.

Typically a breach of contract comes with an opportunity for the breach to be remedied prior to the termination of the contract. The remedy would usually result in you making amends for any financial impact experienced by the other party - ie if you were late they could charge reasonable interest, or if it made them unable to pay something else and they got a penalty they could pass that penalty back to you.

It is definitely worth investigating what the conditions are to terminate the contract.
- chatterbox on 05/10/2022 - 16:22
  
  i guess it was easily solvable by just paying the deposit, but i hear they dont want to sell anymore and thats why they have used the reason of deposit not being paid on time as an excuse.
  - JimmyF on 05/10/2022 - 19:07
    
    +3
    
    Once a contract is signed, they need to go through with it, even if they have a change of mind.
    
    So you need to review your contact and see what the terms are for breaching, as normally there has to be a warning issued and if the breach isn't resolved in a certain time frame you are then in the breach. But you're in QLD so not fully aware of RE contracts in QLD but that is how it works in VIC for these things.
    
    But if they no longer wish to sell, then advise them to refund your deposit in full and you'll move on. Which is the best you can hope for at this stage, as it sounds like they're going to cause you endless issues if they no longer want to move.
  - Domingo on 05/10/2022 - 19:36
    
    +1
    
    Agreed with Jimmy. You need to determine under what conditions the contract can be terminated, and what opportunities you have to remedy the breach. If you haven't been provided such opportunities, then the other party may also be in breach.
Keplaffintech on 05/10/2022 - 16:25

+6

You're technically in the wrong, but a good conveyancer cares about their clients and will follow up on these sorts of things.
apple2016 on 05/10/2022 - 16:52

they say they are not obligated to tell me every single thing that needs to be done

Solicitor is not your personal assistant.
elgrande on 05/10/2022 - 18:49

How much deposit are you losing? 10% or 0.25%?
katykat on 05/10/2022 - 18:53

+1

Obligatory "not legal advice".

If you believe the solicitor has made an error or you have a problem with their service, you can make a complaint to your State's legal services commissioner. They can then assess.

This sounds like your error, but if you think the solicitor could have acted better, then it might be worth making the complaint to see if there has actually been a mistake by them. Note: you are unlikely to get damages or a remedy etc… That's not the role of the Commissioner, it's more about understanding how/why problems occur. Second note: not sure if they have power re: conveyancers. You would need to check - if work done by solicitor then all good, if a licenced conveyancer then check with the Commissioner before making the complaint.
- RMBC on 06/10/2022 - 09:25
  
  +1
  
  The peak body of the firn is another to complain to as well, again, if you genuinely believe that they did not act in your best interests. If they're a large firm, they're likely part of a peak body which carries its own requirements
  - iCandy on 06/10/2022 - 09:34
    
    The Law Society in your State?
    - RMBC on 06/10/2022 - 11:07
      
      Often, yes
Rako on 05/10/2022 - 18:56

+2

If you still want the property perhaps you could talk to the vendor and sort out something mutually agreeable or maybe your solicitor could talk to the vendors solicitor on your behalf, I assume the vendor still wants to sell?
Personally if I was the vendor I don't think my conscience would let me keep the initial deposit.
- Thrawn on 06/10/2022 - 09:25
  
  Generally once the contract has gone unconditional, the real estate agent gets paid. Not sure the vendor realizes this as the commission likely exceeds $5k deposit.
LFO on 06/10/2022 - 10:50

which i obviously forgot as there were too many things going on.

WOT?????