Purchaser broke contract - legal options

hello

We recently sold our house but the purchaser pulled out of the contract. We are trying to resell the house now but finding it increasingly difficult with the market in its current state.

We know that we are entitled to sue for the original vs new sale price difference (when the house eventually sells), agent fees, penalty interest, outgoings etc.

The problem is we are not sure whether this house will sell in the near future.

What are our legal options here? Are we entitled to sue the purchaser for the difference in current market value based on what they paid for it originally? Can this be based on some form of market valuation from a multitude of real estate agents or banks?

Ideally we'd like to sue for this difference, plus the other costs outlined above and call it a day with this purchaser. Otherwise this could drag on for many months (maybe even years...)

 

How could you sue for the difference?

I thought all they would have at risk is the deposit.

Willy

 

You can sue for the difference between what the original purchasers agreed to pay and what you eventually sold it for (but I think you have to get it sold not just valued by bank valuers or REAs). You have to quantity the actual loss. This includes new marketing campaigns as well.

However if the purchasers don’t have the money or assets then all you’ll get is a big legal bill and a court judgement in your favour.

 

Yes no loss yet.
You got to keep the 10% deposit surely?

 

When was the contract entered into and when did they withdraw? Under what grounds? What does your solicitor suggest? How much deposit was paid?

 

I went through the same thing. The legal system is slow and expensive. Might take a few years and $50k plus of costs depending on circumstanced. Keep the deposit and move on.

 

Sounds like the case of Toni Collette. She wanted the court to limit loss to the deposit. Court said otherwise.

You should seek legal advice as it may be easier to reach a negotiated settlement for more than the deposit. The purchaser may want to limit their loss and you may wish to limit the costs and hassles. Or wait and sue them for actual loss but do they have capacity to pay ?? I have seen people have to pay to reach settlement to avoid potential court action. Lawyers can determine the chances of success in the legal process and it can put the wind up the failed buyers.

The deposit is merely the starting point. If a agent charges a common the failed sale that could also be a element of loss. Legals and so on. Carrying costs, final sale price etc