What To Do If You Fail A Property Settlement Date
Rob Balanda for the Property Update advises how buyers should act if a real estate deal fails being closed on its intended date of settlement.
In cases when you do not show up on the property settlement date, sellers get one-up on the buyers and often quote a higher price (let us say $100,000 more than the agreed amount). Buyers give in, fearful of the Breach of Contract nightmares. However, the best way to go ahead is to engage your solicitor.
Let the seller or his solicitor know about the delay (and purely banking reasons for it). In the event of their asking for a higher sum, politely refuse citing paucity of cash. Do so over phone rather than through a letter.
If they do not agree,lure them with the ‘deposit’ bait. Tell them that you are ready to free the deposit amount right then instead of paying at the time of settlement.
If they act fastidious, go one notch higher on negotiation- tell them that you are ready to increase the deposit amount (do not increase the amount more than the penalty they are seeking, in this case less than $100,000).
Your solicitor will invariably take care of the situation and you won’t need to cough up a higher purchase rate.
You can read the original article here.