Would-Be Buyer Ordered to Pay $360,000
Recently a would-be buyer in Surrey, BC was ordered by the BC Supreme Court to pay a seller $360,000 for failing to complete on a purchase.
In May 2016, the buyer entered into a subject-free contract to buy the seller's property for $1,260,000. It was scheduled to complete on September 1, 2016.
Unfortunately, in September, the buyer failed to complete the contract, and the sellers had to re-list the property for sale. Five months later, the sellers were only able to sell for $910,000.
That is a 28% lower price.
Unfortunately, the buyer didn't realize they couldn't just walk away from a contract without consequences. The Court has ordered the would-be buyer to pay the difference between their agreed contract price and the property's eventual sale amount.
This is a tough lesson to learn for the buyer.
It is likely the buyer will attempt to appeal this decision, however, in the meantime there are a few valuable lessons we can learn from this unfortunate incident.
How You Can Avoid This Contract Nightmare
- Writing a subject-free offer, although less common now in most markets, is always risky business. It is advised to write an offer with conditions of sale.
- Walking away from a contract can have consequences - it can even get you sued.
- Get properly pre-approved before writing any offer - it is always best to have all of your documents reviewed, especially income and credit, before writing an offer. That allows you to write your offer with confidence.
If you follow these three tips, you should be well on your way to avoiding a contract nightmare.
As always, if you have any questions, or if you are thinking about buying, reach out to me. I can get you properly pre-approved.
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