What happens if a vendor does not want to settle (NSW)?

Does anybody know what happens in nsw, after exchange, if a vendor decides that they do not want to sell a property anymore? I have exchanged on a property and given 10%, then sold my home for a substantial discount being covid in order to ensure that i would be able to complete the settlement on the newly purchased home. Im curious what my rights are in forcing the completion of the settlement? Thanks

 

They sold the property when they exchanged contracts. Settlement is just sorting out the finances. I don't know the process to force the sale through but there is one.

 

You could sue them in the supreme court for specific performance. but could be costly if it gets that far. Get some legal advice

 

Contract law is pretty well founded on this notion of expected completion of the agreement to avoid the uncertain penalties and costs of breaching an agreement ie specific performance. That said there are ways a contract can sometimes be terminated legally eg death, mental capacity etc perhaps..... Always a case to take straight to a solicitor. Never a conveyancer. the mere threat can be sufficient to spook someone to do the right thing rather than costly court hearings.

I recall the case of Toni Collete who agreed to buy a property then withdrew thinking a kind vendor may just give up and even return the 10% deposit. Instead she was sued for far far more.
Toni Collette to pay up over failed house purchase
The damages were reduced by around $200K on appeal to exclude interest since a delayed settlement didnt occur. A breach of settlement occurred. But the legal fees balooned on appeal etc and ballooned by as much as the successful reduction in damages. You cant beat lawyers can you ?

Actions to threaten a vendor are potentially better than actions against a buyer as the property equity is fully exposed. A buyer may only have a 5-10% deposit at risk.

 

Thank you all for your replies. The settlement date is a little way off, so this has not yet happened. I am just covering all of my potential worries as I sold my home of 15 years for a substantial discount, after exchanging on the newly purchased property, in order to ensure that I would be able to close the deal. If the vendor was to find a way out, I would be at a terribly big loss and I would be homeless. So, I was curious how bound to a contract they would be.

 

Dont be that dramatic. You sold a house and you have the deposit. Doubt youll be homeless.

 

Tell your purchaser you don't want to settle and then just change the names on the letters their solicitor sends you and forward them to your vendor.

Genius I tells ya.

Don't actually do this though.