Hypothetical: Finance is unconditional but fails before settlement

Discussion in 'Legal Issues' started by JohnPropChat, 13th Jul, 2018.

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  1. JohnPropChat

    JohnPropChat Well-Known Member

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    Out of curiosity.

    A contract subject to finance. Bank gives formal approval. A week before settlement, change in circumstances (lost job, blew money on gambling etc) means Bank doesn't want to finance the deal anymore.

    What are the implications on the Buyer. Lost deposit is a given I assume.
     
    JDM likes this.
  2. JDM

    JDM Well-Known Member

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    If the buyer can’t settle then the seller can forfeit the deposit and sue for damages. Very rare a seller does more than take the deposit.
     
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  3. Propertunity

    Propertunity Well-Known Member

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    Loss of 10% deposit to the vendor.
    Potentially be sued by the vendor for difference in eventual sale price and the price you were buying at plus REA sales & marketing costs to resell. (No you don't get a refund if they end up selling for more than you were buying).
     
    JohnPropChat likes this.