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 SPA breach, Staggered cash payments but loan unpaid

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TSasiaproperty
post Apr 13 2016, 12:10 AM, updated 10y ago

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Hi. I have a friend who will most likely be needing a lawyer soon but I would like some advise on the topic.

Friend wanted to purchase a condo unit. ( subsale )
She did not take a loan but instead staggered the payments via cash/cheque every few months.
In return she got to enter and stay in the unit.
Its been about a year and a half that I know they started this process and the property is leasehold.
Now she has paid about RM1 million. ( full price of the sale )
A couple of months back she asked her lawyer what was still happening and what is the delay in registering and transfering the Title and she finds out that the Vendor who is a lawyer by profession and is most likely handling the case - has not paid off the bank loan at all. And claims that they are having financial problems.
I asked what her lawyer advised and she says the lawyer says she can't sue someone for not paying off their loan.

My question would be
1) wouldn't she still be able to sue based on breach of contract/SPA
2) she should still be able to report this to the Bar Council as the Vendor is the Lawyer and if the Vendor/Lawyer is handling their own SPA they still have a legal obligation to follow through and ensuring the SPA is enforced ?
3) as long as the Purchaser has followed through on their part of all the covenants/clauses she should still have the leeway of compelling the Vendor by way of specific performance to pay off the charge and complete the transaction?


Would appreciate some advise here... I have not had a chance to look into the SPA as yet but thought I could hear out some key ideas to what I should be advising my friend...
Thanks !

UPDATE : the Vendor will extend the consent and sell something else to clear the loan. Checked the SPA and its a standard one with no exceptional clauses.

This post has been edited by asiaproperty: Apr 13 2016, 07:17 PM
lifebalance
post Apr 13 2016, 09:13 AM

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QUOTE(asiaproperty @ Apr 13 2016, 12:10 AM)
Hi. I have a friend who will most likely be needing a lawyer soon but I would like some advise on the topic.

Friend wanted to purchase a condo unit. ( subsale )
She did not take a loan but instead staggered the payments via cash/cheque every few months.
In return she got to enter and stay in the unit.
Its been about a year and a half that I know they started this process and the property is leasehold.
Now she has paid about RM1 million. ( full price of the sale )
A couple of months back she asked her lawyer what was still happening and what is the delay in registering and transfering the Title and she finds out that the Vendor who is a lawyer by profession and is most likely handling the case - has not paid off the bank loan at all. And claims that they are having financial problems.
I asked what her lawyer advised and she says the lawyer says she can't sue someone for not paying off their loan.

My question would be
1) wouldn't she still be able to sue based on breach of contract/SPA
2) she should still be able to report this to the Bar Council as the Vendor is the Lawyer and if the Vendor/Lawyer is handling their own SPA  they still have  a legal obligation to follow through and ensuring the SPA is enforced ?
3) as long as the Purchaser has followed through on their part of all the covenants/clauses she should still have the leeway of compelling the Vendor by way of specific performance to pay off the charge and complete the transaction?
Would appreciate some advise here... I have not had a chance to look into the SPA as yet  but thought I could hear out some key ideas to what I should be advising my friend...
Thanks !
*
1) unless it's clearly stated in the SPA of such clauses
2) again depends on the SPA agreement
3) again depends on the SPA agreement
TSasiaproperty
post Apr 13 2016, 10:26 AM

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QUOTE(lifebalance @ Apr 13 2016, 09:13 AM)
1) unless it's clearly stated in the SPA of such clauses
2) again depends on the SPA agreement
3) again depends on the SPA agreement
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Thanks.

 

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