twinsmom65 Posted June 1, 2009 Share Posted June 1, 2009 Hello, This is a quick question for any real estate agents here in Oz. We put an offer in on a house conditonal upon finance approval. This was back in March, we put a $1000 deposit down. Well to date, we still haven't received approval from RAMS (long story), we should finally hear back something this week one way or another. My question is, we still haven't received our deposit back, and they won't give it back to us unless we can prove that we didn't get financing. However, the deal fell through and the vendor actually took the house of the market. If we find out next week that we do have mortgage approval, can we still get our money back?, or can they legally keep the money, even though the house has been taken off the market. Any help would be great Karen Link to comment Share on other sites More sharing options...
rpillinger Posted June 2, 2009 Share Posted June 2, 2009 I think you should phone reiwa for advise. I also think you should let the bank know the house is no longer available to purchase because I would pressume the application was based of the purchase of that house and a valuation would have to be done for the bank. I really cannot see how the agency can keep your deposit. I would be happy to speak with you and point you in the direction for some help if you would like. I am a Real Estate Rep. my ph no is 0438903976. Regards Robyn Link to comment Share on other sites More sharing options...
Guest BullcreekBob Posted June 4, 2009 Share Posted June 4, 2009 Hello, If we find out next week that we do have mortgage approval, can we still get our money back?, or can they legally keep the money, even though the house has been taken off the market. G'day, Here in WA, once yourselves and the seller have both signed or countersigned an Offer and Acceptance that becomes a legally binding contract. It is fully enforceable in law, by either party. If you signed an O&A to buy a property subject to finance and that finance is approved, you are legally obliged to buy and the vendor is legally obliged to sell. If you pull out because you don't want to proceed, the seller has a number of option; to force you buy it through the courts; to sell to the house to someone else at a lower price and sue you for the difference; or if you are very lucky, they might choose to just keep your deposit and walk away from the deal. It sounds like you've been lucky, If your application for finance fails, or any other conditions you included on the contract are not met, then the contract fails and the sellers agent will refund your deposit within a couple of days. It is quite reasonable and normal for you to be required to produce proof that your application for finance failed. Sorry if this is not what you want to hear. Take care Bob Link to comment Share on other sites More sharing options...
Bobcat Posted June 9, 2009 Share Posted June 9, 2009 Hello, This is a quick question for any real estate agents here in Oz. We put an offer in on a house conditonal upon finance approval. This was back in March, we put a $1000 deposit down. Well to date, we still haven't received approval from RAMS (long story), we should finally hear back something this week one way or another. My question is, we still haven't received our deposit back, and they won't give it back to us unless we can prove that we didn't get financing. However, the deal fell through and the vendor actually took the house of the market. If we find out next week that we do have mortgage approval, can we still get our money back?, or can they legally keep the money, even though the house has been taken off the market. Any help would be great Karen Hi Karen Your offer and acceptance would have had a cut-off date for the granting of finance approval; ........... it cannot be open-ended. Also, if finance approval was not received by the cut-off date then you should have signed an 'Extension of Time for Finance Approval' annexure; plus an 'Extension of Time for Settlement' annexure. Were the conditions not met by the set deadline then in all probability you would have been deemed to be 'out of contract'? In which case the listing agent should have refunded your deposit in full. The finance clause on page 2 of the WA REIWA O & A form 07/06 810A3 explains in great detail how the 'Subject to Finance Clause' works; as does the 2002 yellow edition of the Joint Form of General Conditions for the Sale of Land, a copy of which you should have been given along with a copy of the O & A you signed. Was your contract just subject to finance approval being granted; or were there other conditions and clauses pertaining to the sale? As Bullcreek Bob rightly puts it, if you were in default and the sale did not occur because you hadn't fulfilled your commitments then the vendor has several options to take. You can forfeit your deposit, or the vendor can sue you for what we call Specific Performance............. on-sell the house to someone else, if the pre-agreed price between you and the vendor is not achieved.......... then you can be sued for the difference plus costs. When most deals fall over due to finance not forthcoming though; the deposits which are held in a Trust Account are usually refunded in full upon receipt of a Finance Decline Letter from the lending institute. Good luck with your refund. John Link to comment Share on other sites More sharing options...
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