Landlord Reneges On Condo Contract

[partington]

So last week, after a solid month spent looking for a new condo to rent (with agents), finally found one, (in Sukhumvit area BKK), and signed the contract with Thai landlord, agent as witness. Arranged to meet today. to hand over keys and move in.

Well, what do you know, landlord doesn't turn up to meeting . What's more agent says -funny (!), he hasn't been returning messages or answering phone calls (!!) but I did remind him of the meeting by text(!!!). Repeated phone calls from the location as we wait are answered by engaged signal, then ringing, but not answering, then engaged signal again, ie he's chatting between ignoring agent's calls.

Obviously he will not be contactable ever again , and three days before I'm due to move out of current place!

So is there anything I can do at all, with my signed, witnessed, and now dishonoured contract?

I pretty much know the answer's no, but I had to vent. At least I get my deposit back as it was held by the agency.

Has this happened to anyone else?

cheers

[trogers]

A contract will only be good and complete if there are 3 elements in it: offer, acceptance, and consideration.

Since you said both parties signed the contract, did you hand over a security deposit and a month's rent in advance to the other party upon signing the contract? This part is the consideration.

My guess is that the owner rescinded the contract due to not receiving the consideration, - " At least I get my deposit back as it was held by the agency".

Edited February 7, 2011 by trogers

[partington]

A contract will only be good and complete if there are 3 elements in it: offer, acceptance, and consideration.

Since you said both parties signed the contract, did you hand over a security deposit and a month's rent in advance to the other party upon signing the contract? This part is the consideration.

My guess is that the owner rescinded the contract due to not receiving the consideration, - " At least I get my deposit back as it was held by the agency".

Sorry wasn't clear, this deposit was to reserve the apartment. One month's rent and two month's deposit in advance were to be handed over in cash on receipt of the keys.

Clearly if the landlord was bothered about this he would probably have said can I have the reservation deposit, rather than ignoring all attempts to contact him, and not turning up for the meeting at which he would have been given three months rent in cash. I'm not too convinced

[dave111223]

I'd be more annoyed with the agent...what's the point of using an agency if this kind of thing happens...don't they have a list of vetted landlords/properties etc..? Or do they just pickup the classifieds and forward it to you?

[InterestedObserver]

The contract was never completed. One months rent plus two months security deposit and the keys were never exchanged.

[powderpuff]

The landlord got a better offer (& put you on ignore). Rude & unprofessional. Looks bad for your agent too.

[wintermute]

The landlord got a better offer (& put you on ignore). Rude & unprofessional. Looks bad for your agent too.

Welcome to Thailand.

To the op, it's best not to get too upset about this as this happens to Thais sometimes as well.

[partington]

The contract was never completed. One months rent plus two months security deposit and the keys were never exchanged.

Yes thanks for that observation. I had actually noticed the contract wasn't completed, since when I turned up with the one month's rent and the two month's security deposit to exchange for the keys the guy with the keys didn't turn up. This was my complaint in the original post!

Obviously common sense indicates despite signing a contract agreeing to rent to me from 7th Feb, he has ignored this and rented it to someone else for more money....

[partington]

I'd be more annoyed with the agent...what's the point of using an agency if this kind of thing happens...don't they have a list of vetted landlords/properties etc..? Or do they just pickup the classifieds and forward it to you?

I'm absolutely sure from my experience in a month's search using five agencies that you are lucky if they even do that.

Edited February 8, 2011 by partington

[trogers]

The contract was never completed. One months rent plus two months security deposit and the keys were never exchanged.

Yes thanks for that observation. I had actually noticed the contract wasn't completed, since when I turned up with the one month's rent and the two month's security deposit to exchange for the keys the guy with the keys didn't turn up. This was my complaint in the original post!

Obviously common sense indicates despite signing a contract agreeing to rent to me from 7th Feb, he has ignored this and rented it to someone else for more money....

If he had received the booking deposit (that was held by the agency) on the date the contract was signed, the contract is completed, as this booking deposit is consideration.

I rent out one of my condo unit early this year to a Japanese. We signed the contract before the New Year with the lease commencing on 8th Jan, even though he only moved in proper end of Jan. He gave me the security deposit and a month's advance rent on the day of signing the contract, and I gave him a set of keys to the main door. Other keys of the unit were prepared for him on 8th Jan.

[partington]

The contract was never completed. One months rent plus two months security deposit and the keys were never exchanged.

Yes thanks for that observation. I had actually noticed the contract wasn't completed, since when I turned up with the one month's rent and the two month's security deposit to exchange for the keys the guy with the keys didn't turn up. This was my complaint in the original post!

Obviously common sense indicates despite signing a contract agreeing to rent to me from 7th Feb, he has ignored this and rented it to someone else for more money....

If he had received the booking deposit (that was held by the agency) on the date the contract was signed, the contract is completed, as this booking deposit is consideration.

I rent out one of my condo unit early this year to a Japanese. We signed the contract before the New Year with the lease commencing on 8th Jan, even though he only moved in proper end of Jan. He gave me the security deposit and a month's advance rent on the day of signing the contract, and I gave him a set of keys to the main door. Other keys of the unit were prepared for him on 8th Jan.

If I had received keys on the day I signed the contract it would of course be a different matter: but I didn't. We did an inventory, I asked for a few things to be supplied, he agreed, and we agreed to meet one week from then to exchange three month's rent money for keys on the day that I was due to move in. He was present when the reservation deposit was counted out, and when the agent stated that the agency holds it safe to guarantee that I will go through with the deal or lose it. He was happy as he left and asked me on the way out some questions about the items I'd asked for. He did not on the surface look like he was worriedly considering definitions appertaining to western contract law.

From that point on he did not answer or respond in any way to communication from the agent. As he had seen the agent take the deposit and give me a receipt for it, he would have known to ask the agent for it if he had misunderstood both verbally, and in the written conditions that the agent gave him that the agent keeps it as a third party and gives it to him as compensation if I break the deal.

I'm not sure what exact point you're making. is it:

1. he's perfectly justified in renting the condo to someone else despite the contract with both our IDs and signatures on it, as I hadn't actually paid him any money?

2. That therefore I should have paid him 3 month's rent last week without keys and then if he didn't turn up I could start a long and involved court case and I would probably win it?

3. That he is being completely above board and transparent, is desperately trying to rent me the condo, but I am putting so many barriers in his way that he really is just unable to do it ?

[trogers]

The contract was never completed. One months rent plus two months security deposit and the keys were never exchanged.

Yes thanks for that observation. I had actually noticed the contract wasn't completed, since when I turned up with the one month's rent and the two month's security deposit to exchange for the keys the guy with the keys didn't turn up. This was my complaint in the original post!

Obviously common sense indicates despite signing a contract agreeing to rent to me from 7th Feb, he has ignored this and rented it to someone else for more money....

If he had received the booking deposit (that was held by the agency) on the date the contract was signed, the contract is completed, as this booking deposit is consideration.

I rent out one of my condo unit early this year to a Japanese. We signed the contract before the New Year with the lease commencing on 8th Jan, even though he only moved in proper end of Jan. He gave me the security deposit and a month's advance rent on the day of signing the contract, and I gave him a set of keys to the main door. Other keys of the unit were prepared for him on 8th Jan.

If I had received keys on the day I signed the contract it would of course be a different matter: but I didn't. We did an inventory, I asked for a few things to be supplied, he agreed, and we agreed to meet one week from then to exchange three month's rent money for keys on the day that I was due to move in. He was present when the reservation deposit was counted out, and when the agent stated that the agency holds it safe to guarantee that I will go through with the deal or lose it. He was happy as he left and asked me on the way out some questions about the items I'd asked for. He did not on the surface look like he was worriedly considering definitions appertaining to western contract law.

From that point on he did not answer or respond in any way to communication from the agent. As he had seen the agent take the deposit and give me a receipt for it, he would have known to ask the agent for it if he had misunderstood both verbally, and in the written conditions that the agent gave him that the agent keeps it as a third party and gives it to him as compensation if I break the deal.

I'm not sure what exact point you're making. is it:

1. he's perfectly justified in renting the condo to someone else despite the contract with both our IDs and signatures on it, as I hadn't actually paid him any money?

2. That therefore I should have paid him 3 month's rent last week without keys and then if he didn't turn up I could start a long and involved court case and I would probably win it?

3. That he is being completely above board and transparent, is desperately trying to rent me the condo, but I am putting so many barriers in his way that he really is just unable to do it ?

I doubt the owner has knowledge in contact law prior to rescinding the signed contract. We can only guess his reason not to follow through. Could be that he has a higher offer, or that he did some detail calculations on the additional items and changed his mind, or even finally decided to look for a buyer instead of renting it out.

But on your question of whether you can successfully seek remedy in court, the answer is probably 'No' as he had not taken receipt of the booking deposit, thus there was no consideration to complete the contract. See - http://wiki.answers.com/Q/How_do_the_concepts_of_offer_acceptance_and_consideration_work_together_to_create_a_valid_contract.

In future, you should take a small risk by giving the other party a booking deposit directly, and request a written receipt from him, instead of having an agent hold on to the money. This booking deposit is the consideration to complete the contract.

I mentioned my case with my Japanese tenant to highlight 2 points: he wanted to secure the unit and was willing to start the lease a couple of weeks earlier than necessary, and he furnished the consideration to complete the contract on the day of signing.

[partington]

I doubt the owner has knowledge in contact law prior to rescinding the signed contract. We can only guess his reason not to follow through. Could be that he has a higher offer, or that he did some detail calculations on the additional items and changed his mind, or even finally decided to look for a buyer instead of renting it out.

But on your question of whether you can successfully seek remedy in court, the answer is probably 'No' as he had not taken receipt of the booking deposit, thus there was no consideration to complete the contract. See - http://wiki.answers.com/Q/How_do_the_concepts_of_offer_acceptance_and_consideration_work_together_to_create_a_valid_contract.

In future, you should take a small risk by giving the other party a booking deposit directly, and request a written receipt from him, instead of having an agent hold on to the money. This booking deposit is the consideration to complete the contract.

I mentioned my case with my Japanese tenant to highlight 2 points: he wanted to secure the unit and was willing to start the lease a couple of weeks earlier than necessary, and he furnished the consideration to complete the contract on the day of signing.

OK , thanks for the help

[thaiwanderer]

Am i missing something here - the agent received the money - go against them? (success is another matter)

[amykat]

I bet your "agent" is the one who is screwing up your deal. I've rented several homes here over the years, and every agent/friend/commission seeking person has done various weird things. There was no reason for the agent to take all of that money upfront from you. I'm curious to know if you have that money back now or not?

Your agent, maybe never really contacted the owner, was faking it, or they had some deal together, who knows? One home I rented, with my dogs being the major concern, was in a village that did not allow dogs. Of course they took the 3 months money, "agent" keeping one month, and when I confirmed/discovered that dogs were not allowed, the only money that I did NOT get back, was the one month the agent kept, and she was the liar, not the owner.

I've also rented a fully furnished home, that after getting the 3 months, was promptly UNfurnished, with the owner telling me she misunderstood that I wanted the furnishings (although she is a university prof who had an advanced degree from the US and spoke English perfectly) however the agent did nothing, she did nothing, expected the full rent, kept my deposit when I moved out early, and told me her father was some big shot police guy and "F" me. She even took the "F'Ing water pump and told me the city was doing work and there was no water for the first week I lived there, until I figured out what a pump was, and that it was gone!

I've also had houses I wanted become mysteriously unavailabe, I later figured out, because of some larger commissions to be had elsewhere, so the agent lied to me of course. Well I could go on all night about this subject. Four homes, each one was it's own nightmare for various reasons, and I was never happy until I finally bought something. However that may turn into a nightmare also, at some point, who knows but I do enjoy this place at least!

So, did you get your money back or not?