Seller Backing Out for No Reason after 10% Deposit

[krkisland]

Perhaps this would be ok?

Dear Sir/Madam

I am writing this letter to confirm that my client XXX would like to complete purchase of Property XXX in Krk. We expect the purchase to complete within 7 days.

Please can you confirm if there are any problems completing this sale. From my discussion on the phone I believe your company may not be able to complete the sale but my client would still like to procced with purchase. Please can you confirm this in writing if this is the case.

Regards
XXX


Would anyone be kind enough to translate this to give to my agent?

Rgds
Chris

[Aleksandra]

The rest of translation (other clauses)

Clause 3

The Buyer and the Seller assume an obligation to conclude the final property purchase contract in accordance with and after the completion of the situation report on property sub-division in Krk Land Registry books. The Seller assumes an obligation to complete the sub-division of the property on its own cost and in the shortest possible time.

Clause 8

Did not translate all details, but this clause basically says that there is a mortgage on the propery of one and a half milion EUR. This clause also mentions what is the interest rate currently being paid on the mortgage. The last paragraph of this clause says that once the contract is settled, the Seller guarantees that HVB Splitska Bank will issue a document that is sufficient to clear the mortgage from the Land Registry books.

Clause 9

As soon as the purchase contract is signed and the full purchase price paid, the Seller will issue to the Buyer a document which will be sufficient for Buyer to enter themselves into Land Registry Book as property owner.

Clause 10

The Buyer can enter into possesion of the property from Clause 1 of this pre-contract immediatelly after settling the purchase price and upon signing inventory receipt.

Clause 11

Parties agree that until the Buyer obtains the possesion of the property, the Seller has a duty to settle all costs with regards to the property.

Clause 12

Any disputes from this pre-contract will firstly be attempted to be resolved by mutual agreement, but if in that way the dispute cannot be resolved, the municipal court will preside.

Clause 13

This pre-contract is comprised of four identical copies of which the Seller retains 3 and the Buyer retains one.

This pre-contract represents the wishes of both parties and by signing this pre-contract they accept rights and obligations that result herein.

[Aleksandra]

Hi,

I am confused - are you saying that you are dealing with lawyer who does not speak English? This is a receipe for trouble!

[Aleksandra]

Hi,

I feel that at this point your letter just needs a confirmation in writing that the seller will proceed. If you cannot get this confirmation, then you need in writing from SELLER that they are withdrawing from the sale, after which you will call upon clause 7 and ask for a double deposit back. It has to come from the Seller in writing that they are not proceeding, anything else could be taken as a "mutual agreement to break pre-contract" and you may have trouble getting double deposit back. So your letter has to read "I am ready, are they?"

Hence I would send something alongside the following lines:


In accordance pre-contract, the Seller and the Buyer have obligation to conclude the purchase of property xxxx in Krk on xxx date.

I am ready to proceed and complete the purchase under the terms as stipulated in pre-contract. Could you please confirm by xxx date and in writing that the Seller is honouring their part of pre-contract agreement and will complete the sale on xxx date for xxx price as agreed in pre-contract.

Kind Regards
.....

[krkisland]

Thanks for the translations Kitty and for the help.

Its complicated. My wife is croatian by birth so she has been dealing with Croatian speaking lawyers, agents. They dont speak English too well.

I therefore want to initially get my Agent to send a letter to the Seller but his english isnt amazing although I can communicate with him. Unfortunately my wife is out the country currently so Ive been left to deal with this :-(


Would you be kind enough to translate the below to croatian?

In accordance pre-contract, the Seller and the Buyer have obligation to conclude the purchase of property xxxx in Krk on xxx date.

I am ready to proceed and complete the purchase under the terms as stipulated in pre-contract. Could you please confirm by xxx date and in writing that the Seller is honouring their part of pre-contract agreement and will complete the sale on xxx date for xxx price as agreed in pre-contract.

Kind Regards
xxx

[Aleksandra]

Suggest that you fax your letter as well as send by post.

In Croatian:

U skladu sa predugovorom sklopljenim aaaaa, Kupac i Prodavatelj obvezali su se sklopiti dana bbbbb konacni Ugovor o kupnji nekretnine xxxx na otoku Krku.

Ja, kupac ccccc hocu ostvariti svoje pravo i obligacije iz potpisanog predugovora i kompletirati kupoprodaju, t.j. potpisati konacni kupoprodajni ugovor i isplatiti dogovorenu kupoprodajnu cijenu od pppp na dan bbbbb.

Molim Vas da mi na pismeno potvrdite do eeee da Prodavatelj postuje svoje obligacije is potpisanog predugovora i da je Prodavatelj spreman potpisati finalni kupoprodajni ugovor dana bbbb za cijenu od pppp kao sto je ugovoreno u predugovoru.


The EXACT English translation of the above:

In accordance with precontract solemnised aaaaa, the Buyer and the Seller obliged themselves to sign on bbbbb the final property purchase contract for xxxxx on island of Krk.

I, the Buyer cccc want to excercise my right and obligations from signed precontract and finalise the purchase, i.e. proceed to sign the final purchase contract and settle the full purchase price of ddddd on bbbbbb.

Please could you confirm in writing till eeee that the Seller is honouring its obligations from signed precontract and that the Seller is ready to sign the final purchase contract on bbbb for the price of pppp as it is stipulated in precontract.

------------

aaaaa - the date the precontract was signed
bbbbb - the date when the final contract was to be signed
xxxxx - property details as they are in precontract
cccccc - you, the buyer (or buyers if buying with your wife)
ppppp - the full price of the property
eeeee - the date by which you want them to reply to this letter

BTW, you are not maybe buying an apartment in *****?

[krkisland]

Thanks Kitty.. Its in *****

[krkisland]

Nope not those ones..

[boris]

Kitty, you are great for your accurate translation.

[krkisland]

Ok my agent has sent me a copy of a letter he is sending to the seller. Unfortunately in Croatian language :-( . I am also getting a letter sent to the seller (from my wife).


This is the agents letter.

PREDMET: Poziv na sklapanje konačnog Ugovora o kupoprodaji


Poštovani,

Obavještavamo Vas da smo dana 05.08. 2007. g. primili poziv od strane gospđe
WIFES NAME iz AAAA, BBBB, sa kojom ste dana xx.07. 2007. g zaključili Predugovor o kupoprodaji nekretnine u ZZZ;ima u zgradi sagrađenoj na z.č. 11xx/x, z.- k. ul. xx94, k.o. i to stan BBBB SP XX., sa zamolbom da Vas obavijestimo, da zahtijeva i poziva Vas na ispunjenje obveza iz istog Predugovora, te pristupanju zaključenja konačnog Ugovora o kupoprodaji predmetne nekretnine i to u roku od sedam dana.
Gospđa WIFES NAME ujedno izjavljuje da je spremna isplatiti ugovorenu kupoprodajnu
cijenu u cijelosti, na način kako je to Predugovorom ugovoreno, te da je spremna ispoštovati sve obveze iz predhodno navedenog Predugovora.
Gospđe WIFES NAME ujedno očekuje ispunjenje obveza preuzetih od strane SELLERS COMPANY NAME d.o.o., a sve temeljem Predugovora o kupnji nekretnine zaključenog dana xx.07. 2007. g-
Vaš pismeni odgovor molim otposlati na našu agencijsku adresu iz razloga
odsustvovanja gospđe WIFES NAME sa njene boravišne adrese iz Predugovora.

U očekivanju Vašeg skorog odgovora srdačno Vas pozdravljamo.


Rijeka, xx.08. 2007. g.

[Aleksandra]

Hi, here is the translation, I think it is a good letter, I wish you a good luck!


SUBJECT: Invitation for conclusion of the final property purchase contract

Dear Sir,

I am informing you that on the day 05.08.2007. we have received call from WIFE'S NAME from AAAA, BBBB, with whom you have on the day xx.07.2007 solemnised Pre-contract for the purpose of purchase the property in Cizici in the building build on land registry entry 11xx/x, land registry book xx94, cadastre Suzan, which is apartment BBB SP XX. We were asked to inform you that (THE WIFE) requests that you fulfill the obligations from Pre-contract and to conclude the sale by signing the final contract within 7 days.

Mrs WIFE'S NAME also stipulates that she is ready and willing to settle agreed purchase price in its entirety, in the way as defined in Pre-contract and that she is willing to comply with all obligations from above mentioned Pre-contract.

Mrs WIFE'S NAME also expects that the SELLER'S COMPANY NAME Ltd honours all their obligations, based on the property purchase Pre-contract solemnised on xx.07.2007.

Please send your written response to our agency's address owing to Mrs WIFE'S NAME not being present at her residential address stated in the Pre-contract.

Kind Regards and we hope to receive your reply soon.

Rijeka, xx.08.2007

[krkisland]

Thanks for the fantastic translation again Kitty...

[krkisland]

The story changes today:

I have had 2 recorded delivery letters sent to the seller stating we want to proceed with sale. One from agent and one from my wife.

After having my agent and my father in law calling the director of the company selling the flat today they say there was an administrative error selling this flat as the whole block is for the directors family..

They sent plans of other flats to my wifes brother and are now saying they may offer a possible discount of another apartment in one of their other 4 blocks instead for the inconvenience...

I think they may have realised they have stitched themselves up signing the double money back contract :-)
And the Director apparently doesnt want problems with Court as their company is big in Croatia. They say they should give money back but they mention something about it being in two stages. If they will give the money back why after 14 days do I still not have it..

Will I accept their kind offers of another smaller discounted apartment in another block.?.

No

1) Ill be demanding my money back (plus the extra as per contract) and taking it through court if they dont as I know they dont want the hassle. Lets make life difficult for them like they have made life difficult for me :-)

We will see what happens tomorrow.

[darcy]

My suggestion is not to believe in admin error story.

They have not stitched themselves with the double money back condition that is how it works in Croatia; all real estate contracts in that part of Europe have the exact same condition. This is because deposit money goes directly to the seller (and he/she/they are TO FREELY USE THE FUNDS received) and not to the lawyer, or to the agent's trust account - waiting for the settlement.

Payment in two tranches, I think that is typical Croatian method of delaying and testing the water. I suggest you to immediately ask for unconditional payment within 7 days or pass the matter to your lawyer. If their company is that big in Croatia and they do not want to go to court, they will respect you as their customer and honour the contract in full.

Believe me, I worked with Croatian companies and I have found very professional and good managers there. I could swallow they promised your apartment to their other client, so you missed, but "director's family story" - even in Croatia that really stinks.

Unless you receive some other advice from your Croatian family, I suggest playing as tough as possible, if you want to see any of your money back.

[krkisland]

Hi Darcy

Ive sent a letter asking to proceed with the sale. In the hope that they will return a letter stating that they will not sell the apartment. I believe I need some kind of evidence that its them that backed out of the sale not me. I can then provide this to a lawyer. Currently its all been verbal conversations on the telephone and nothing on paper so far..

Is it best I give them a chance to send a letter - the letter gave 7 days for a response. Or shall I just instruct a lawyer to get in contact with them ( it has been 14 days of delay tactics so far)..

Regarding stitching themselves up - Apparently this particular company have a standard contract that get buyers to sign that only offered the deposit back and no extra 10%.. We however insisted on our own contract with a clause for double the deposit back if they backed out..