Sale and Purchase Agreements

[ari]

Has anyone had experience of 'unconditional agreement' on house property turning to ****e. In this case, 10% deposit 15 days over due with settlement another 9 days away.

[minimoke]

quote:Originally posted by ari

Has anyone had experience of 'unconditional agreement' on house property turning to ****e. In this case, 10% deposit 15 days over due with settlement another 9 days away.

Sounds like best you get your solicitor onto it straight away. It sounds like you have the "Offer and Acceptance" part sorted but the deposit thing will be problematic. This is usually the Consideration part of a contract - without it there is no contract: no contract, nothing to enforce!

[duncan macgregor]

YES 3 within a couple of miles from each other. first one $25000 deposit buyers divorcing sellers moved out then back in again luckily didnt go unconditional themselves real estate agent kept $23000 of the $ 25000 dollars the rotten bastards leaving them to fight it out in court. The second one a mortgagee auction 10 pc deposit turned to custard but saved the bacon for the owner. the third one lady had her property on the market went unconditional on a hotel no bids at the auction lost her deposit on the hotel. that one was on location location. all within a five mile radius in five months. Its not sold until the money is in the bank. macdunk

[ari]

quote:This is usually the Consideration part of a contract - without it there is no contract: no contract, nothing to enforce!

Don't think so.....once unconditional buyer has contractual obligations to fill, even if it means off to the court, which I believe are dealt with fairly swiftly these days.

[minimoke]

quote:Originally posted by ari

quote:This is usually the Consideration part of a contract - without it there is no contract: no contract, nothing to enforce!

Don't think so.....once unconditional buyer has contractual obligations to fill, even if it means off to the court, which I believe are dealt with fairly swiftly these days.

And this may the heart of the problem - if they haven't paid the deposit, how can it be unconditional?

[ari]

quote: if they haven't paid the deposit, how can it be unconditional?

Conditional to finance...and purchasers solicitor has confirmed that
'Finance condition...satisfied this day'

[Winston001]

Yes I can help Ari. The sale is unconditional meaning the purchaser is bound to purchase on the settlement date and the vendor is bound to transfer clear title and (usually) vacant possession on settlement date.

The deposit is an "earnest" if you will, a payment which establishes the bone fides of the purchaser. Frankly the main reason deposits are obtained is so the agent can deduct their commission.

It isn't uncommon for there to be no deposit specified in the Agreement for Sale and Purchase. Reasons can be that the buyers money is already tied up in an existing home. Or there is an inheiritance just over the horizon.............[xx(]

When the deposit is called for in writing, the purchaser has 3 days to come up with the money. After that the vendor may elect to cancel the contract and resell. Unfortunately the agent is still due his commission and may come looking for it. And a new commission on the resale of course.

Your solicitor needs to follow this up. And the agent should be a bit nervous too because you rely upon an agent to establish the bone fides of the buyer.

Nevertheless the sale may settle no problem or a bit late. It isn't often that buyers walk away. True, you can sue them but if they have no money then..............[V]

[ari]

Phew, did not need that....3 weeks of little sleep but can move on now with money in the bank. So go on RBNZ, put the rates up, I'll make more than I did with the last venture!

[Gryffyn]

quote:Originally posted by minimoke

quote:Originally posted by ari

quote:This is usually the Consideration part of a contract - without it there is no contract: no contract, nothing to enforce!

Don't think so.....once unconditional buyer has contractual obligations to fill, even if it means off to the court, which I believe are dealt with fairly swiftly these days.

And this may the heart of the problem - if they haven't paid the deposit, how can it be unconditional?

It's uncond because they've signed it so. The money is irrelevant. Solicitor should have been chasing this an hour after it was due.

[ari]

quote:It's uncond because they've signed it so. The money is irrelevant. Solicitor should have been chasing this an hour after it was due.

I certainly learnt alot over this little excercise and wheels were in motion to sue. Although I did get $680 penalty interest on deposit (my instruction to Solicitor) who then pat themselves on the back and claim success with an additional $600 tacked onto account! Should have gone purchaser for that too.