All Topics / Help Needed! / Solicitor SCREWED UP with prepaid rent money!

Viewing 13 posts - 1 through 13 (of 13 total)
  • Profile photo of soloinvestorsoloinvestor
    Participant
    @soloinvestor
    Join Date: 2006
    Post Count: 39

    I bought a block of flats in December 05. I advised my solicitor that they were tenanted and asked him to make sure that the rent was sorted out and that I was paid rent from the date of settlement.. he assured me this would be the case and “no problems”. The property is leased by Government Dept and they pay rent monthly in advance in the first week of every month. Settlement took place on December 23, however unknown to me, they had already paid January’s rent in advance to the seller (as their office would be closed when it was due). so……… I didn’t received rent and contacted them, advised my solicitor and he said “no problems, that should have been advised at settlement, I will contact sellers solicitor and will get a refund of rent for you” He told me it would take a week or so………….5 months later, he wont even return my e-mails! I have contacted him almost weekly in the beginning to monthly as time went on and he tells me that “he hopes to have better news next week ” every time! I have told him this is getting out of control and asked why it’s taking so long, and he just says that “he hasn’t heard back from the other party”???? The amount in question is almost $2,000. Should I bother – am I in the right to demand the payment – should the vendor be obliged to give it back or am i relying on the “goodness of their heart” ?????[comp]

    Profile photo of elkamelkam
    Member
    @elkam
    Join Date: 2006
    Post Count: 722

    I’m no lawyer but common sense tells me that you should recieve 1 month plus 8 days rent from the previous owner.

    I think I would go to another lawyer to get advise about who made the mistake and what your options are. For me it would not be so much the money but the fact that I was being cheated.

    Good luck
    Elka

    Profile photo of Mortgage HunterMortgage Hunter
    Participant
    @mortgage-hunter
    Join Date: 2003
    Post Count: 3,781

    My solicitor did this to me as well and the figure was well over $2K. He said there wasn’t much we could do. I asked him to pay it and he said no but that he would chase it for free.

    He suggested we write a letter of demand to the other solicitor and threaten to take them to court, however he also said if that didn’t work we better give up – I suspected the other solicitor would know this.

    I had a think and that evening I rang the vendor and told them what had happened. she was very nice about it and sent me a cheque the next day.

    that solicitor gets no further business from me, and worse, he gets no referrals.

    Sometimes I think solicitors make things harder than they need to be to justify their own existance.

    Simon Macks
    Residential and Commercial Finance Broker
    ***NODOC @ 7.15% to 70% LVR***
    [email protected]
    0425 228 985

    Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.

    Profile photo of shaztazshaztaz
    Member
    @shaztaz
    Join Date: 2004
    Post Count: 113

    Hi soloinvestor,
    Sounds like your solicitor is at fault (negligent?), and may be reluctant to disclose the embarrassing mistake to the sellers solicitor.

    Maybe he hasn’t heard back from the other party because he hasn’t contacted them yet!

    These people take care of complaints against solicitors…..

    Suggest you might like to contact ‘The Office Of The Legal Services Commissioner” Ph. 02 9377 1800 (Sydney) or Tollfree outside Sydney 1800 242 958 and explain your problem to them. They are very helpful.

    There is also the Professional Standards Department, The Law Society of NSW, Ph 02 9926 0390. FAX: 02 9221 5804

    These services are entirely FREE.[thumbsupanim]

    If you are in another state I’m sure there would be an equivalent office or department that takes care of complaints about solicitors.

    Yes it is worth persuing – Keep the B…….. Honest[grrr]
    Apologies for the [grrr] outburst. My solicitor is also definately OFF my Christmas card list!
    Regards,

    Sharon

    Profile photo of soloinvestorsoloinvestor
    Participant
    @soloinvestor
    Join Date: 2006
    Post Count: 39

    Thanks for all your responses – the solicitor just keeps saying I will get the money – but when?? I have never had any contact details for the vendor – only the agent and it seems like it has been too long to contact the agent after nearly 6mths. I stupidly just kept trusting my solicitor as we had been dealing with him for a long time. I didn’t want to cause a falling out, but I feel ripped off and annoyed now, so think I will get some other legal advice. I have also just signed contract on new property and wondered if I should see if he would do conveyancing for FREE as some form of compensation, or if I should just toss him entirely and pursue the matter legally????

    Profile photo of elkamelkam
    Member
    @elkam
    Join Date: 2006
    Post Count: 722

    I don’t see any reason not to contact the agent and ask for the vendors details, even after 6 months. What have you got to lose? As Simon discovered, contacting the vendor may be the quickest and certainly the cheapest solution for you.

    Elka

    Profile photo of Stuart MilneStuart Milne
    Member
    @stuart-milne
    Join Date: 2006
    Post Count: 196

    Go and see another Solicitor. Serve The Real Estate Agent, Your Solicitor, The Vendor, AND Their Solicitor with a writ and sue the lot of them. Make sure your Writ includes Damages for Stress, Lost Interest on the funds, Interest Payable, etc; Someone will cough the cash and perhaps they all will. You have a case against all of them so why not? There are quite a few solicitors out there who would love to play the game on that basis, and most Solicitors enjoy taking down a Comrade. I guess it’s the Legal Societies Pecking order and the opportunity to advance up the ladder a bit higher that spurs them on…

    Have Fun!

    Stuart Milne
    Non-Conforming Specialist
    READY Mortgages
    http://www.readymortgages.com.au
    [email protected]
    Mob: 0404 056 055

    Profile photo of Ol PaintingOl Painting
    Member
    @ol-painting
    Join Date: 2003
    Post Count: 123

    I would strongly advise you to contact a Low Society in the relawant state! just email an enquery and explain your situation.

    If you are in loss becouse of the solicitor’s mistake – he should repay you the loss from one funds or use his insurance.

    I had a problem once when my solicitor went on the run with all documents for about 2 months. Just a letter back from those guys was enough for him to agree to pay off all overdue interest.

    (The end on the story was that his practice was seaced week after my setlemels – he had problems with quite a few people)

    Cheers
    Lesia

    Profile photo of thecrestthecrest
    Participant
    @thecrest
    Join Date: 2004
    Post Count: 992

    Well done Shaztaz, those details will come in very handy.
    2 or 3 requests ( if there is an existing relationship then they are instructions by the way ) to your own solicitor to rectify their own mistake is more than enough. After that, the whole matter should go to a higher authority.
    cheers [thumbsdownanim
    thecrest

    thecrest | Tony Neale - Statewide Motel Brokers
    http://www.statewidemotelbrokers.com.au
    Email Me | Phone Me

    selling motels in NSW

    Profile photo of soloinvestorsoloinvestor
    Participant
    @soloinvestor
    Join Date: 2006
    Post Count: 39

    Just a follow-up on what has happened with this issue.

    Yesterday I contacted vendors solicitors regarding this matter demanding to know what the holdup was – guess what – in 5 months, my solicitor had not even ONCE contacted them to advise of the oversight and they were not even aware that it had occurred.!!

    In frustration, I contacted the Qld Law Society regarding this matter. They pursued it for me and within ONE DAY, I had the managing partner of my solicitors firm contact me and get my bank account details. Apparently they are going to refund my money in full within 7 days and pursue the vendors themself! BRAVO! Thanks for all your help, thanks to QLD LAW SOCIETY in Brisbane, they are brilliant!
    [biggrin]

    Profile photo of HousemenderHousemender
    Member
    @housemender
    Join Date: 2006
    Post Count: 62

    Yes, letters from the Law Society/Institute are taken VERY seriously by lawyers. There are very serious implictions for unstisfactory professional conduct and professinal misconduct – and can result in being struck off, large fines or rectification of the matter. I have never had such a letter – thank god – but do know lawyers and firms who have and the letters are taken very seriously.

    Most professions have an Institute or Ombudsman of some sort, so if you genuinely feel you have received treatment of an unreasonable standard then my advice is COMPLAIN![angry2] It is your right after all.[biggrin]

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,024

    Why not name the firm publically so fellow forumites are not caught up in a similar situation.

    As Simon mentioned lack of referalls hurts more in the long term.

    Richard Taylor
    Residential & Commercial Finance Broker
    **NODOC loans from 7.14%**
    Licensed Financial Planner
    http://www.yourstatefinance.com
    [email protected]
    Ph: 07-3720 1888

    Richard Taylor | Australia's leading private lender

    Profile photo of AjaxAjax
    Participant
    @ajax
    Join Date: 2004
    Post Count: 60

    I am an NSW solicitor yet I instructed a conveyancer to act on my conveyance in the Northern Territory. Was asked the question “Do you want rent adjusted on the settlement by us or do you want to leave it as between the incoming managing agent and outgoing managing agents” (continuity of tenannts). I was told the latter is the way its usually done in Darwin.

    I agreed to the latter. The tenant then prepaid quite a few weeks rent to the outgoing managing agent a few days before settlement. This money sat in the outgoing managing agents account until I queried my first rental statement from the incoming agent a month later (very little rent paid) . Outgoing managing agent was then slow to release the money.

    I wonder what would have happened if I had not noticed this.

    Always get your conveyancer/lawyer to adjust the rent via the settlement statement and remaining monies to be paid at settlement. If need be have this instruction to your solicitor/conveyancer put in writing so you can come come back and question the conveyancer/lawyer later.

    Ajax

Viewing 13 posts - 1 through 13 (of 13 total)

You must be logged in to reply to this topic. If you don't have an account, you can register here.