Rich explained: “After completing an appraisal and due diligence I negotiated a price of $580,000.
“However, during contract preparation and searches it transpired that the house was caught up in a drug ring investigation and had been used to manufacture ice. My client was worried that the sale may be hampered or stopped by the investigation.
“I recommended the client engage a lawyer, who discovered that the NSW Crime Commission would not stop the sale but would take the proceeds of the sale after the transfer was done.
“Due to these difficulties, I managed to negotiate the price down further to $560,000 and shorten the settlement.
“The selling agent commented that the vendors were strange to deal with and I had to guide him on what steps to take with them.
“We also negotiated early occupation at a reduced rent (pre-settlement) as our client had agreed to move out of their existing property early.
“The vendors’ lawyer was very cagey and non-responsive but we got there in the end. Now the property is worth over $850,000.”
How to handle difficult purchases
Rich said: “I think the key thing to do in difficult situations is to find out as much information as possible to work out how it will affect the sale. You need to ensure that the buyer is protected at all stages.
“Once you have found out the facts you must advise the buyer and disclose how it will affect the sale.
“For example, if it could hold up the sale for six months, you would have to consider the impact. It not only puts your client’s life on hold, but the market could change by the time it comes to settlement.
“It is also important in situations like this to use a skilled lawyer. A lot of people might use a conveyancer but they will not have the knowledge and experience of a lawyer to offer the most expert advice.”