All Topics / Help Needed! / Agent Secretly changed contract!!!!

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  • Profile photo of James007James007
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    Hi all recently signed a contract to buy a house there were several things the purchase of the home was subject to one of them being to a building and pest inspection with no cut off date, the agent has since changed the contract by writing "by the 8/01/08" directly next to subject to building and pest inspection it is very easy to spot the difference in writing and thickness in pen (its a photocopy) This copy was given to my conveyencer whilst i have the one with know date.
    We did not co sign with any date on the contract, and i feel they have been very cunning and calculating throughout the whole buying process, mind you they spruke about how they follow the Jenman principles and why you shouldnt buy with anyone else.
    Does anyone know what my rights are regarding this.???

    Thankyou in advance
    James

    Profile photo of v8ghiav8ghia
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    wow. guy sounds like a real 'sharp pointy object'. I guess you want the house, but I would be talking to the guys employer – unless of course he is the owner. Reminds me of the time I had a Jenman agent (Professionals franchise) principal ring up the guy I paid to do a building inspection and blast him for being so critical and asking him to review his findinds and call me back. The builder gave him a serve too – as he was working for me. as a sidepoint, though, I keep tabs on the agent, and they are no longer a 'Jenman' agent. ……read into that whatever you like. However back to your issue – if you have the original contract, and the add in looks as obvious as you say, I think you could get them into a bit of strife – it is fraud – no two ways about it. All the best – hope it works out.

    Profile photo of James007James007
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    The agent is the owner  dont know where i stand legally but i'd say could be good grounds for negotiation, or further action.

    Profile photo of crashycrashy
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    woah. serious conflict there. solicitor should be able to extort I mean negotiate the price lower due to the FRAUD

    Profile photo of LinarLinar
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    Hey James

    He has not only breached his obligations under the relevant RE Agent Code of conduct but he has also committed a criminal act of fraud.  Report him.

    Cheers

    K

    Profile photo of James007James007
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    Trying to negotiate the property price down will be hard becuase the vendors will not want to move unless we threaten to pull out, so the agent may have to give up on some commission but even then that wouldnt be a great deal of $$$ some advice from a solicitor might be in order, short of going in there myself and laying it on the table, but with no legal knowledge the agent would probably call my bluff.

    Profile photo of L.A AussieL.A Aussie
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    The agent has committed fraud here.

    Don't report him to the REI as they are there to look after the agent's interests, so they will not do much.

    Consult your solicitor and look at taking legal action.

    If you don't have a solicitor, contact Terry Ryder: http://www.hotspotting.com.au/

    This will scare the agent as the fines for this sort of conduct can be a hefty fine up to loss of licence to practice real estate and/or both.

    Aslo, get onto Neil Jenman; he loves to get behind people in this stuff: http://www.jenman.com.au/

    Profile photo of Jon ChownJon Chown
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    James007.   There are two issues relating to your post.   The first is one of legality on the Agent adding a date post signing by you as the Buyer.   One question that I would ask is.   Was it done when the Seller signed the contract?  If so it is a counter offer and will require an initial of acceptance by yourself to ratify the alteration.   However if it was indeed done after the signing by both parties, then the Agent is at risk.

    In saying all of that, I would bring your attention to the fact that no Solicitor worth his salt would ever draw up a  condition without a 'due by date'.   The reality is that if there is no due by date on the contract, you don't have to advise acceptance or rejection right up to settlement date, so the Seller doesn't know if he has sold or not.

    Jon

    Profile photo of James007James007
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    Hi Jon it was done after i signed it possibly when the vendor signed it so if both contracts are not the same they are not legally binding meaning i can walk away without loosing anything. Note the contract was signed on the 28/12/07 so we didnt want a cut off date for the inspection as we didnt know how quickly we could get it done due to holidays etc.

    Profile photo of Jon ChownJon Chown
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    Hi James,

    As the contract was altered after you signed it, it is no longer binding, only you can make it so by initialling the alteration and accepting the condition.   You must decide if you still want the property and if you do, I would advise that you perhaps renegotiate the date for the Building Inspection to your and the Sellers satisfaction.   In my opinion at this point in time, you don't have an enforcable contract.

    I understand how difficult it was over the Christmas period to sort out times, but the clause must still have an end date.   Perhaps it would have been prudent to word the clause in such a way as to allow for extension to the condition should you not be able to complete by the due date.

    Jon

    Profile photo of JLJL
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    James,
    I'd report him because the next person he changes a contract on might be someone not so saavy as you and might get financially hurt out of it. 
    JL

    Profile photo of James007James007
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    Spoke with my conveyencer today and i really doubt that he is working for me and not the agent, as he recieves a lot of work from the agent i feel there is a massive conflict of interest. After pointing out the mistake in the contract i told him i would go and have a talk with the agent about it in the mean time he has contacted the agent to tell him this giving the agent time to organise and prepare for me upon my visit.

    Spoke with the conveyencer who i usually deal with and she has said without a doubt i have a case to terminate the contract and ther fact that i have only put down $500 would mean a very reluctant vendor in terms of sueing.

    Interesting to note that the other conveyencer is trying to steer me away from even using the changed date on the contract as a reason saying it is debatable?? I would suggest his motives are extremely questionable. Does anyone know a good real estate solicitor.
    For the mean time i have the dodgy solicitor drawing up a letter stating we will be pulling out of the contract due to the building and pest inspection and the unauthorised amendment unless the selling price is reduced to an amount specified he will send this to the vendors conveyencer. Having said that i had to ask him to add the unauthorised amendment as he wasnt going to put it in ?????? some i am going to ring him in the morning and tell him his services are no longer needed and apoint my regular conveyencer. This might also scare the agent as he will be dealing with the unknown, what a mess!!!! anyone got any advice i'll take anything i can get at the mmt.

    Regards,

    James 

    Profile photo of Richard TaylorRichard Taylor
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    What State is the property in ?

    Richard Taylor | Australia's leading private lender

    Profile photo of James007James007
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    Profile photo of LinarLinar
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    Hi James

    You need to work out whether you want to buy the property or not.  If you are looking for an excuse to get out of the contract then the unauthorised amendment would be a good excuse.  If, however, you still want to proceed with the purchase then you should do just that, regardless of the RE Agent's activities.  Don't try to second guess the vendor's motives.

    From an ethical viewpoint, I don't think that this is an opportunity to drive the selling price lower.  The RE Agent has acted illegally, yes, but using his illegality to further your cause is, in effect, condoning what the RE Agent has done.  Nowhere have I seen karma bite as badly as she does in property dealings.

    Either the deal is worth it or it isn't.

    Just my thoughts

    Cheers

    K

    Profile photo of trakkatrakka
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    James, I also feel that you're trying to take advantage of this situation. As Jon has pointed out, it's unethical to try and enter a contract with absolutely no time limit on getting your building and pest, and you seemed to "gloat" a bit about thinking you have gotten away with this elsewhere on the forum.

    What's your problem with the date the agent specified? If you already had your building and pest done by then, and were planning to go ahead, then no harm has been done to you. If not, then either negotiate an extension to building and pest, or pull out.

    But I'm with Linar, I think you're just trying to get the price down, without good reason. Either it's a good deal and you proceed, or you walk away. But trying to continue and screw the vendor for a lower price because of some possible dubious action by the agent is unethical on your part.

    And incidentally, every purchase contract that I've signed (where I was making an offer) was undated. I think agents have told me it has to be dated when the sellers accept the offer. (This has been repeated so many times that I assume that it's true, but I'm happy to be corrected.) So the date of contract – surely a very important date! – has always been filled in after I've signed, and without me counter-signing. Does this mean I've never had a binding contract, or that every purchase I've made has involved "fraud" by the agent?

    Profile photo of Jon ChownJon Chown
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    James, both Linar and Trakka have given excellent replies.   You really need to make a decision as to if you want the property or not..   Just to clarify Trakkas comments on 'Contract Date',    The contract is dated by the Agent only after all parties (that is Seller and Buyer) have agreed to all negotiable issues and conditions and have initialled all alterations.   In James instant the date is in relation to a condition and you can't have an open ended condition.

    Jon

    Profile photo of trakkatrakka
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    Jon Chown wrote:
    The contract is dated by the Agent only after all parties (that is Seller and Buyer) have agreed to all negotiable issues and conditions and have initialled all alterations.

    Thanks, Jon!

    Profile photo of James007James007
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    Hi all basically you guys  are completeyly missing the point the reason why i am negotiating the price down is becuase of the building inspection there are several issues with the property which i have recently recieved quotes for all of which arent huge issues but when you add them up comes to quite a bit more than i actually can afford on the property.
    As far as i am concerned the vendors are luckuy i'm even giving them the option of reducing the sale price to continue through with the purchase. I will also add the RE has acted unlawfully and hasnt been easy to deal with from the start just because i'm young dosent mean i'm dumb!!!

    Trakka you say its unethical to enter into a contract and have no end time for the building and pest it is not my problem if the agent writing up the contract failed to communicate with me and insert a date suitable to me at the time of signing is it???, i didnt find out about the date until after it expired which if i didnt know any different could of been enforced on me with no right of reply which a lot of average people would probably except. I dont have a problem with dating conditions i do when i'm not aware of it though.
    And as for gloating ??? i was merely stating a fact which was mentioned once not exactly gloating….

    Profile photo of trakkatrakka
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    Sorry that I misunderstood you, James. You hadn't mentioned that there were questionable items in the building and pest inspection. I think that you can't push the line that you had a binding contract with an unspecified timeframe for building and pest – because presumably the copy that you have with no date wasn't signed by the vendors, right? So they hadn't accepted that offer. If the agent added the date prior to the vendor signing, then effectively the insertion of the date constituted a counter-offer by the vendors, which you hadn't accepted (by signing/initialling). Therefore I'm with Jon that you had no binding contract, so you should request for your deposit to be refunded on the basis that there never was a binding contract. Don't take the line that you're terminating; I believe your argument should be that there never was a "meeting of the minds" and therefore never a valid contract.

    Then you have to consider whether you want to make a new offer to purchase the property. Bear in mind you'll obviously have to deal with the same vendor and real estate agent, and (I presume) they won't let you make your offer subject to building and pest because you now have that information. It depends whether you think you can still negotiate a worthwhile deal on this property in those circumstances.

    And I really don't think that either the agent or vendor intended anything shonky. I think that the agent probably noticed there was no time limit and put one in. I really doubt that he thought you'd have a problem with it. And if you'd had a conveyancing solicitor, they should have made you well aware of this time limit immediately, and the issue could have been sorted out much sooner.

    Best wishes, and apologies if I misjudged you.

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