Instances of unconditional contract but fails to settle.

Jus wondering how many of you have come across a contract that is/goes supposedly "unconditional" but then does not settle or get across the finish line after all. And if there are some of these, what might the reason be?
Frizzle
 
We bought out home after someone had bought at an auction (unconditional) but failed to settle - I assume for financial reasons - because I haven't found anything seriously wrong with the place after living in it 3 years!

Cheers,

The Y-man
 
have seen it a couple times. Usually financial related. Particularly prelevant on properties with long settlements as most finance approval is only valid for a few months. So they apply, are given approval, agree to buy with 6 month settlment, sign unconditional, reapply with a couple of months to go, finance denied. Happened recently with a property we sold off the plan.. still a court hearing going on.... completed two years later and the buyer cant complete due to finance.
 
I've recently had this happen with a townhouse sale. The vendor's financier was unable to proceed on the date of settlement (yes vendor's, not purchasers) and as such an extension in settlement was requested. The purchasers declined the request for an extension and terminated the contract on the grounds of the vendor failing to settle.

From a legal stand point i believe we are still entitled to commission on that sale, however we have not called upon the vendor to pay these fee's and would prefer to just resell the property and not charge them twice.
 
From a legal stand point i believe we are still entitled to commission on that sale, however we have not called upon the vendor to pay these fee's and would prefer to just resell the property and not charge them twice.
It's happened to me once, where my purchaser was unable to obtain finance in time. We rescinded the contract, and took his deposit (which was only $500 and well short of our extra holding costs anyway), and then accepted another offer from the same buyer a week or two later, when he had his finance approved. The agent didn't charge us double commission, though legally, he could have.

A guy that I know had a parcel of land that he bought for $1M. He got a DA on it which increased the value to $7M. :cool: He took the loan up to about $4M to put some cash into another development. He then had a buyer who purchased for $7M, subject to the vendor withdrawing his own DA, so that the buyer could lodge a different DA (you can only have one at a time, at least in this area).

In the days before settlement, the buyer got the impression that his own DA wasn't going to be approved, so he just refused to settle. Even with a $100K deposit - which he forfeited - the vendor lost out big time. He now had a property with no DA, whose value had dropped back to around $1M. And the rules had changed such that the DA which he previously had, could no longer be obtained. :( :eek:

And of course the purchaser was structured in such a way that there was no hope of retrieving any damages from them for the breach.
 
I've recently had this happen with a townhouse sale. The vendor's financier was unable to proceed on the date of settlement (yes vendor's, not purchasers) and as such an extension in settlement was requested. The purchasers declined the request for an extension and terminated the contract on the grounds of the vendor failing to settle.

When I bought my current PPOR I had the same situation - the vendors financier was unable to proceed on the settlement date. In fact the settlement was delayed three times before it actually went through. It has never occured to me before then that the vendor might delay settlement.

Regards,

Jason
 
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