Lis Pendens added to title day before closing

[Rebecca Browne]

Hi,

I purchased a property via auction that had some kind of repossession. We were purchasing from someone acting for the receiver? On the day before our closing date a lis pendens was added to the title so we couldn't close. The property was boarded up and sat dorment for a long time, we thought there was a death maybe. 

Thrre were some clauses in the contract that left space for this to happen but also others to cover us. It is a very bad contract and I employed a very inexperienced solicitor to look over the paper work before buying the property. 

I have now changed solicitor and she noticed the changed before we tried to draw down. 

The vendors solicitor is now playing hard ball and pointing out a clause in the contract that allowed for this  and plans to try and keep our $45,000 deposit. 

We're a young couple who have saved for years to purchase a property. It is our dream home and we have no idea what we can do to get rid of this lis pendens. Why have they don't this now the day before the closing date. Have we been played by a scam? 

Can anyone help? 

Regards, 

Danny