[Resolved] Signed Lease but Change of Mind The Next Day - Will I Need to Pay?

LLazyturtle 217 on 19/10/2023 - 10:31
Last edited 23/10/2023 - 11:13 by 2 other users

Hi all,

I signed a lease agreement yesterday (18/10/23) 1PM. I have not paid bond and rent yet. Move in date 28/10/23.

I got accepted for another property on (18/10/23) 6PM. I like the other property better and would like to go for it. Are there any legal implications.

When I called my agent she said she was not happy and I have messed them around and she will have to charge advertising and admin fees etc. She said she will get back to me about this afternoon.

Also, 18/10/23 morning, she was chasing me to sign the lease as there were other applicants who were interested. On domain and real estate the ad is still up and it says available. On their website, it says Leased and Under application.

Do you guys think I need to pay any damage?

Home & Garden

closed Comments

  • crentist on 19/10/2023 - 10:38
    +60

    Read what you signed

  • animasoIa on 19/10/2023 - 10:42
    +39

    You signed a contract, would make sense you are liable for whatever you signed for which I imagine is a break lease.

  • overthinking on 19/10/2023 - 10:49
    +11

    What state/territory are you in?
    Quick google search tells me there's no cooling off periods for rentals.
    Therefore, technically you'd be in a break-lease situation.
    GL MATE
    🍿

      • El cheepo on 19/10/2023 - 11:05
        +26

        Sure they can just give it to one of the other 100 people in line with next to no effort (other then shredding your contract and sending out another email to the next choice).
        But they are a business and you signed a contract.

        They are well in their rights to sting you for a break lease/ admin fees.

        Plus almost all REA’s are awful, so I wouldn’t hold my breathe for any human compassion on it.

        Just hope they want admin/advertising fee and not a break lease fee.

        • Why the advertising fee?
          Refer to this point.

        Plus almost all REA’s are awful

        • afah0447 on 20/10/2023 - 15:22
          +7

          Correct. REAs are the modern day used car salesmen. They are dodgy and everyone hates them!

          • derrida derider on 21/10/2023 - 12:17
            +2

            @afah0447: True but irrelevant - it is OP, not the REA, who is in the wrong here. There is no reason for even the most honest of REAs not to charge OP for absolutely all their costs, including their time.

            So OP is entitled to change their mind just so long as they are happy to pay the full cost to others of that. There are no grounds to complain.

      • Sammy2000 on 19/10/2023 - 13:27

        The advertising is outsourced. She would have to email Realestate.com.au to relist if there were no other applicants. Perhaps admin fees are each of the emails and phone calls she has to make to find the next person. Isn't this how lawyer's charge?

        • El cheepo on 19/10/2023 - 15:33
          +3

          Valid point for what the fees could be.

          But, There is a rental crisis across Australia… very unlikely to have just one applicant unless the place is asking 2k a week…

          (Edit: just read op below, there was 40 people looking, so unlikely they were the sole applicant)

          So likely, it would just be a fee for the hell of it.

      • heRyDrOiLicaVO on 22/10/2023 - 13:10

        I saw your update that they chose not to charge you anything in the end; however, given you are in Victoria, you should be aware that our rental laws allow for you to cancel the lease with immediate notice, including before moving in, if the property does not meet minimum standards.

        This page has info about notice periods and fees that may be payable

        This page has information about the minimum standards, including information confirming you can choose to cancel the agreement, or not pay rent until the breaches have been fixed

        If you are ever in this situation again, contact Consumer Affairs Victoria, they have a dedicated area for helping with these types of enquiries.

    • Alley Cat on 19/10/2023 - 13:10
      -1

      I’ve always thought cooling off period universally applies to all contracts. Thanks for this.

      • [Deactivated] on 21/10/2023 - 11:59

        I need applause when you buy a property, and the agents get a higher offer apparently 🤣

      • ihbh on 21/10/2023 - 19:56

        applies to all contracts

        Including other way round? That is, gazump op if someone offers higher rent, say, a day later?

  • mbck on 19/10/2023 - 10:57

    What did you sign? Read the contract. You agreed to its terms when you signed. You cant make up your own rules now. If you had issues with a contract, you deal with it at the time before signing.

    Gl

      • [Deactivated] on 19/10/2023 - 11:19
        +11

        You got an opinion….

        Also you do seem to need an explanation of how contracts work, and that is exactly what your question was, re: "do i need to pay damages?"

      • MS Paint on 19/10/2023 - 11:20
        +26

        I am here for an opinion

        Ok. I'll reword it.

        In my opinion you're likely in your early to mid 20's?

        Seems to be a generation of not understanding what a contract is and entitlement to breach it's conditions. FFS.

          • MS Paint on 19/10/2023 - 11:28
            +5

            @Lazyturtle 217: Your lack of capitalisation, in my opinion, is still not convincing me.

          • Almost Banned on 19/10/2023 - 12:14
            +8

            @Lazyturtle 217: What makes it worse is that you are not just a dumb kid, only dumb, not understanding what a contract is.
            If you have a binding contract, you will be liable for loss for breaching it.

        • dzpliu on 20/10/2023 - 13:11
          +1

          This cracked me up.

      • Jono05 on 19/10/2023 - 16:58
        +4

        Too lazy to read the contract you signed? Opinions don’t really matter.

      • buckethat on 20/10/2023 - 11:48

        An opinion and a stupid response can be one and the same.

    • JimmyF on 19/10/2023 - 11:18
      +1

      Seems to be a generation of not understanding what a contract is and entitlement to breach it's conditions. FFS.

      So many around, like the ones I place a order last night and now want to cancel, why won't the store take a change of mind return.

      You had all the time in the world before clicking 'buy' to change your mind.

        • db87 on 21/10/2023 - 19:31
          +1

          That just sounds like you wanted to sign as many as you could in the hope you'd land one and in doing so cheat someone else out of potentially getting to sign.

          In MY opinion, you're liable for every cent if there isn't another applicant. You've changed the perception of the property let alone wasted people's time. Anybody that was looking will now have a perception of the property that there is something wrong with it.

          As far as I'm aware, your liable for any break fees OR pay the lease until they find a replacement tenant.

          Good luck…

    • Ocker on 19/10/2023 - 11:21
      +8

      Seems to be a generational issue - "entitlement "

      • Lazyturtle 217 on 19/10/2023 - 11:24
        -5

        nope. asking for an opinion what are the possible options.

        • gromit on 20/10/2023 - 12:58
          +4

          The options are quite clear as per your contract. You are liable for break lease fees, anything less than that is completely at the discretion of the REA and Landlord.

    • bobswinkle on 19/10/2023 - 23:59
      -1

      This is a fascinating comment. Corporations break contracts all the time. It's always just a cold risk assessment of the costs and benefits of doing so. Donald Trump and Elon Musk infamously refuse to honour contracts and the world (profanity) loves them. It seems you have to be a minimum level of rich to decide whether to honour your contract or not.

      • Name on 21/10/2023 - 21:05
        +1

        And when they do they usually are sued or pay the price for cancelling contracts. Famous recent one is Victoria government ripping up the contract for East West link and being liable for around $340m

        • bobswinkle on 22/10/2023 - 07:15

          98% of the time they don't actually. Because it's not worth it.

  • dylo on 19/10/2023 - 11:05
    +23

    Username checks out

  • Mokr on 19/10/2023 - 11:14
    +5

    When I called my agent she said she was not happy and I have messed them around and she will have to charge advertising and admin fees etc.

    See this is where you need to say a better truth. You needed to build empathy with the agent when giving your leave. Provide a story, which provides some empathy to you.

    • Lazyturtle 217 on 19/10/2023 - 11:26
      -4

      Fair. i thought being honest was better. I believe they go throught this all the time.

      • pharkurnell on 19/10/2023 - 11:38
        +3

        with how hard it is to find a place, Im fairly sure they never go through it.

        YMMV

        • fantombloo on 19/10/2023 - 13:04
          +6

          When I called my agent she said she was not happy

          I thought that was the only positive outcome in this mess.

  • JimmyF on 19/10/2023 - 11:17

    Signed Lease but Change of Mind The Next Day - Will I Need to Pay?

    You'll need to pay whatever the contract says you need to pay as a 'exit' or 'cancellation' fees.

    • Lazyturtle 217 on 19/10/2023 - 11:25
      -4

      read through. does not say anything about exit or cancellation fees. Obviouly there are details about lease break

      • JimmyF on 19/10/2023 - 12:05
        +25

        Obviouly there are details about lease break

        and that my friend is what you are doing…. so what does that section say?

  • thatonethere on 19/10/2023 - 11:17
    +2

    She has a list of applicants who may or not have been suitable. See what the 'fee' is, if it's reasonable pay, and chalk up to experience and forget about it.

    Also think about what you would do and say if you signed the lease and the landlord then changed their mind… what damages would you want?

    • Lazyturtle 217 on 19/10/2023 - 11:22
      +2

      I am sure there are. she was literally pushing me yesterday to sign it as there are heaps of others who were interested.

      • Lazyturtle 217 on 19/10/2023 - 11:23
        +2

        Also 40+ people in the inspection

        • Sammy2000 on 19/10/2023 - 13:21
          +9

          You will now be on her unsuitable list in the future.

      • turbochris on 20/10/2023 - 09:20

        That's called sales.

  • JIMB0 on 19/10/2023 - 11:30
    +17

    Should have told them you lost your job. They'd gladly let you out of the contract no problems. Too late now.

    • bobbified on 19/10/2023 - 12:00
      +3

      That's actually a good one! They probably wouldn't even bother trying to charge any fees either!

    • io on 21/10/2023 - 00:27
      +2

      The only comment in this thread which is actually useful.

    • db87 on 21/10/2023 - 19:35
      -1

      I see three tenants in this and the 2 comments that followed.

      Lol @ the entitled tenants these days. We want to f**( over landlords every chance we can get but we don't want to cop the consequences of well…. Life. Smh 🤦‍♂️

  • Baysew on 19/10/2023 - 11:31
    +5

    My stupid judgement is whilst the Real Estate Agent is unhappy, they probably won't charge you anything. Especially as there is none of your money to grab. They will just lease it to next in line.

  • bargaino on 19/10/2023 - 11:44
    +3

    When you break a contract, you are liable for costs. There need to be actual costs though.
    If the agent just has to ring the next person on the list, she cannot charge you for advertising. She cannot charge you for being annoyed.
    What will she do? Send an invoice for half an hour of her time? Blacklist you for breaking lease? … You may have to pay something.

    Grovel, apologise, and send her flowers. When the commission comes in from the new tenant, she'll probably forget all about you.

  • djones145 on 19/10/2023 - 12:09
    +2

    tell them to send you an invoice to….. no where lol
    they dont ahve your new address :)

    • db87 on 21/10/2023 - 19:37

      No… They just have your previous address and all your contact details and references that funnily enough are in the same contract that all of the same "Break Lease" details wil be in.

  • Seraphin7 on 19/10/2023 - 13:23
    +2

    Why do people think they can sign and contract and then "just get out of it" in any other way than the in compliance with terms stipulated in the contract?

    • Lazyturtle 217 on 19/10/2023 - 13:48
      -1

      was not the intention to get out and it was few hours after the contract signed. There was no potential loss of money for PM or the owner. Probably an hour waste of PM's time. Given the market and the type of property, the new tenant/applicant was in the waiting line.Also it does not require more inspections or marketing.

      • Seraphin7 on 19/10/2023 - 13:51

        So how much do you think you should compensate the PM for their wasted time?

        • Lazyturtle 217 on 19/10/2023 - 13:52
          -2

          whatever standard admin fees they charge.

          • Seraphin7 on 19/10/2023 - 13:55

            @Lazyturtle 217: And how much is that?

            • Lazyturtle 217 on 19/10/2023 - 13:57
              -1

              @Seraphin7: I am unaware at this stage. no communications yet. it all happened this morning. I dont want to go through lease break/ marketing and advertising fees and charges if posssible. Hopefully it is simple enough to pass it on the next in line.

              • db87 on 21/10/2023 - 19:38

                @Lazyturtle 217: Probabaly something you should have established before signing the 2nd contract.

      • Gareth on 20/10/2023 - 09:57
        +1

        So, if shortly after signing the contract the PM called you and said "I've found a better tenant, sorry." you'd have been fine with that?

        It's not that you'd have any potential loss of money, would you?

  • KaTst3R on 19/10/2023 - 14:19
    +18

    I think the owner dodged a bullet. These are exactly the types of tenants landlords dont want. Those who are entitled, not obeying rules type of people. If you think you can get out of a contract now, I am sure there will be lots of disputes down the track.

    • ColtNoir on 20/10/2023 - 08:41

      Have a sook, mate. Would you rather a tenant that didn’t want to be there.

      LL love to call housing a business but lack basic empathy.

      If it wasn’t for the ‘housing crisis’ they likely never would have signed the first lease.

      • KaTst3R on 20/10/2023 - 09:21
        +1

        LL love to call housing a business but lack basic empathy

        So landlords are running a charity?

        You rarely hear stories about landlords signing a lease than turning around the next day to break it because they got someone who offered higher. It will never happen, because the landlords and REA (despite all the hate) are commercial enough to know once the agreement is finalised, both parties will have to uphold the contract. There are costs to delays in starting the arrangement. The owner himself/herself could be liable to pay for additional advertising fees. It is only fair OP covers these costs with reason.

        • blushingelephant2 on 20/10/2023 - 09:58
          +1

          It will never happen

          Well it happened to my mate. Not the next day though - 2 weeks after he signed and paid holding deposit. REA told him an international offered 30% more and tough luck.

          • KaTst3R on 20/10/2023 - 10:03
            +2

            @blushingelephant2: Some landlords are a**eholes and this is highly illegal. He has grounds to complain to the States Civil and Admin Tribunal. But it is very likely your mate will be kicked out after the lease period.

        • ColtNoir on 21/10/2023 - 09:51

          What costs though? The ad is still live, I’ve never seen a RE remove them until the bond, lease and 2 weeks is signed. The most I’ve seen is them update the description to say pending.

          At most a lease prep fee, so what, $100 max.

          They probably already have others lined up ready to go.

          LL need to remember housing is necessity and have some empathy. They already get enough damn gov subsidies.

    • Lazyturtle 217 on 20/10/2023 - 19:02
      -2

      Disagree. If the owner didn't want it, they would'nt have selected my application at first place. This is one off situation and i am sure everyone comes across dilemmas in their life.

      Never had any major issues/disputes during my previous tenancy. Only moving out because the current owner sold the house.

  • jm7 on 20/10/2023 - 00:17
    +2

    I am shocked by the numbed of comments advising you to "check your contract". Ultimately the Residential Tenancies Act (or whatever the equivalent is in your state) trumps any terms that conflict with the Act. I don't have the time or energy to check the Act for you - I suggest checking it out to see if there's anything relating to a cooling off period and fees you're liable for. If the agent is asking you to pay advertising fees, request a copy of the invoice from realestate.com.au (or whichever site they are using) because no doubt they will try to overcharge you.

  • Sidor on 20/10/2023 - 08:12
    -3

    Agent is full of shit, they actually charge landlord for advertisement, re-renting fees.

    • Gareth on 20/10/2023 - 10:04

      Generally for break contract situations the existing tenant is charged (how much will depend on the situation).

      Of course this money, like all monies received, is part of the income for the property - but from the PM side, they may charge for the additional work, which will come out of monies the landlord would otherwise receive.

  • ColtNoir on 20/10/2023 - 08:39

    Did you pay a holding deposit? I’ve not ever had a property held for me without one.

    I would recommend you call your states rental support service and get some advice.

  • Thinkswithelbow on 20/10/2023 - 10:00

    I did this a few years ago. Paid the first week of rent as a breaking fee and moved on with my life. Agent was fine about it.

  • tomoliveri on 20/10/2023 - 10:06

    Just remember - if they found a preferred tenant last minute, do you think they'd hesitate in breaking their agreement with you?

    Of course not.

    There is no cooling off period, however don't let the REA make you pay for a whole new campaign.

    If they didn't have any other applications, they'd be doing the same inspections and ads next week anyway.

    Take the new place.

  • reactor-au on 20/10/2023 - 10:10

    I had to do this before due to unfortunate change in circumstances in the family, the agent/landlord and I agreed to 2 weeks rent and call it even.
    So it depends on your negotiation with the landlord/agent.

  • AustriaBargain on 20/10/2023 - 10:33
    +1

    A single day has messed them up so bad? What if you didn't sign it yesterday.

    • Lazyturtle 217 on 20/10/2023 - 18:18
      -2

      I was not planning to and wanted to wait but they chased me few times in a day.

  • LFO on 20/10/2023 - 10:48
    +1

    Well … you haven't paid a cent so probably you are well off the hook, safe and dry.

    Agent might bitch a bit but, as they must have a loooong list of interested parties, there will be almost zero cost for them to lease again.

    You are dealing with evil real estate agents so, not much mercy, please.

  • retardedrabit on 20/10/2023 - 12:27

    Did the home owner sign the agreement yet? For a rental agreement to be valid, both parties need to sign afaik.

  • Breno785au on 20/10/2023 - 12:27
    -1

    FFS. Read the contract you signed, end thread.

  • madbunny on 20/10/2023 - 12:40
    +1

    People are being too harsh on OP. Yes they signed a contract, but these agreements generally aren't written to consider these type of situations. They just dont occur all that often.

    Yes, the agent could try and hold you to the break lease clause, but honestly it wouldn't be worth the effort to chase you further because you havent paid the bond yet or moved in.

    Sure they would be annoyed, but the owner probably would opt for a tenant that would want to stay at the property long term rather than one looking to exit at the end of the lease.

    • gromit on 20/10/2023 - 13:02
      +2

      They absolutely ARE written to handle these situations. It is a simple break lease and they are absolutely entitled to chase them for any costs incurred.

      • madbunny on 20/10/2023 - 13:28
        +1

        I realise that this falls under "break lease", but OPs situation is not really in the spirit of this clause.

        I've been on both sides of renting, and honestly I have no sympathy for real estate agents. The majority of them are lazy, incompetent, or both.

        It really comes down to negotiation when dealing with these residential tenancy matters.

        • gromit on 20/10/2023 - 13:45
          +2

          It absolutely is in the spirit of the clause. He signed a contract and as such is wholly responsible for any reasonable costs. Given it was hours after signing others were likely already told they didn't get the place and may have moved on, there will almost certainly be some costs here whether it is purely a few hours of wasted time or potentially upto and including readvertising and rent until filled.

    • Eeples on 20/10/2023 - 21:00
      +1

      What type of situations?

      Finding a better rental?

      • madbunny on 21/10/2023 - 10:17
        -1

        Abandonment of property. This assume that the tenant has already moved in i.e. break lease fees are generally framed around the tenant wanting to move out.

        If the real estate agent was doing their job then they could've charged a holding fee or deposit. That way at least some monies (~1 week rent) could have been kept if the tenant decided not to proceed after signing the lease.

  • Homr on 20/10/2023 - 12:58
    +1

    Bikies

  • SteveD on 20/10/2023 - 13:13

    Op username checks out.

    There might have been N number of applicants/prospective tenants, but before they approved you, the realestate agent has to do the due diligence to carry out background checks before they can forward your application to the landlord. This takes time and time is money. Secondly, realestate agent would have forwarded few applications to the landlord to choose and he/she choose you to rent their house, which states the landlord was not keen on other applicants. So you have wasted all their time and they have to go to this process again to find a suitable tenant, this take time and time is money and you don’t want to take the responsibility for paying up for their time. Put yourself in their shoes and ask if yourself if you would be happy to let go without penalty.

    In terms of legality in vic, once you have signed a rental lease agreement, you are typically bound by its terms and conditions. This means that you may be obligated to pay rent and the bond amount specified in the lease, even if you decide not to move in. They may allow you to break the lease under certain conditions, such as finding a suitable replacement tenant or paying a penalty fee.

  • Baysew on 20/10/2023 - 13:36
    +1

    The thing is a contract is between two parties. The landlord would need to sign to make the contract binding.

    The Real Estate Agent is not going to forward it to the landlord, knowing that the OP is not going to move in, pay a bond and rent in advance. Therefore there is no Administration/Break Fee etc etc the Real Estate Agent can charge, as there is no enforceable contract.

  • mousie on 20/10/2023 - 13:36
    -1

    Don't pay the bond, it's down to them to chase, and likely they will offer to someone else.

  • TightAl on 20/10/2023 - 14:01
    +5

    Ozb needs a new rule, stop new accounts from creating Forum topics seeking advice.
    3 month wait before creating Forum.

    • TheRealCher on 20/10/2023 - 22:53
      +1

      I'm fascinated that dude had mental energy to create account, post and reply amidst all the drama….is this how people deal with things? Back in my day we used to go foetal and not answer the phone for three weeks….by the tim the police kicked the door down, the problem was solved.

      • reactor-au on 21/10/2023 - 07:56
        +1

        6 weeks waiting list to see a psychologist

        • TheRealCher on 21/10/2023 - 16:28

          Yeah, that's fair. We used to have bulk billing ..

    • kaleidoscope on 21/10/2023 - 10:12

      Why? It’s a mix bag of things for either side and it’s fine the way it is and you can always not spend time reading posts that does not interest you I guess?

      Unless the problem that needs advice can wait 3 months as well, this is a moot point

  • curtturtle on 20/10/2023 - 14:12
    +2

    Tell them to offer it to one of the hundred other offers they would have gotten. There's a rental shortage. And pay them nothing. Even if you are in the wrong, real estate agents are as dodgy as used car salesmen and deserve a little of their own BS.

  • vchar on 20/10/2023 - 14:24

    these days, running a business is hard but keep it running is even harder …

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