Losing 10% deposit
- Thread starter Oscar
- Start date
No you are right perfectly acceptable to keep 100k because someone else possibly had bad luck.
I wish drink drivers would lose their house if caught driving while over. I also think if you are caught speeding it should be at least a 100k fine. Because here you are putting someone else's life at risk which is much more serious than a property sale falling through nobodys life in danger there. I hope they make it the rules and print it in black and white.
I am currently renting and have had a couple issues not fixed after various complaints a good 4-5 months now . Pretty sure in the contract it states repairs will be carried out within a certain time frame. Landlord not caring, am I entitled to free rent now till my contract finishes?
Just a piece of paper with no emotion or compassion in it.
Family of 4, husband gets killed, wife a kids left behind. Sole income is lost, can't continue with house purchae. Vendor gets to keep 100k and devistated family lose a loved one and a 100k along with it.
I can certainly see people keeping the money in this thread without a blink of an eye. It is in the contract.
Truly incredible how money has ruined people.
Obviously in this case the vendor killed the purchaser, its his fault . ...
or is it expected the vendor provide life insurance for the purchaser?
sole breadwinner: get life insurance.
can't afford life insurance: can't afford a house
and possibly, DIDN'T.
very poor judgement we all know nothing about the circumstance of the real, or any hypothetical defaulter.
was going to write about ignorance: bliss: and how happy some people must be: but I won't
Out of interest lets flip the coin. It has been said if a buyer defaults there could be a clause for the vendor to sue if the property sells for less to recover the difference.
What if the property sells for more the 2nd time around can the previous buyer claim a percentage of the extra sale price over the previous sale? Say it sells for 200k more can the previous buyer claim say 100k because after all it is only due to him the sellers are getting extra money?
So not only did he lose his deposit he also made the vendors an extra couple 100k.
What if the property sells for more the 2nd time around can the previous buyer claim a percentage of the extra sale price over the previous sale? Say it sells for 200k more can the previous buyer claim say 100k because after all it is only due to him the sellers are getting extra money?
So not only did he lose his deposit he also made the vendors an extra couple 100k.
Things happen and why I believe you need to look at the situation. Not just waive your contract and cheer with delight.
All my reports have been written and even acknowledged that it will be fixed.
Not all tenants are complainers. I think they have had plenty of time to fix issue.
In OTP residential contracts, the deposit is held in trust and cannot be used to pay creditors until settlement. It is the developer's issue to work out project finance.
Maybe contracts should be changed to allow vendors to only keep enough to cover expenses and not profit from a failed sale.
Contracts could also be adjusted to take into account accidents, death, loss of incomes, etc situations like the above to allow buyers to recover the deposit or part of it.
I guess this might keep both the contract fanatics and reasonable people happy.
Laws/Contracts can always be improved.
Cheers
Andrew
Why hold a deposit? Investment is INVESTMENT kids not a dang charity.
You will need to question your motives if you are prepared to waive your rights to enforcement of the agreement.
Each party enters into the contract as an informed adult. Where necessary they should seek legal and financial advice.
Having a buyer pull out of the deal in a tight or falling market or when government has a restrictive monetary policy is not fun. Live a few cycles and you might change your mind about your right to retain the deposit.
You will need to question your motives if you are prepared to waive your rights to enforcement of the agreement.
Each party enters into the contract as an informed adult. Where necessary they should seek legal and financial advice.
Having a buyer pull out of the deal in a tight or falling market or when government has a restrictive monetary policy is not fun. Live a few cycles and you might change your mind about your right to retain the deposit.
What I'm feeling here is the difference between commercial and corporate reality vs personal moral or ethical conflict.
It's unreasonable to expect a corporate entity to navigate moral hazards in the same way as a single human or a small group of aligned humans would, there are way to many competing commitments for a largish commercial organisation
Contracts are constructed and all parties usually have a say says to whether to accept same or not.
I have had circumstances where ....
the sellers have resold and pocketed the deposit and an increased sale price during a hot market where the buyer could not complete a TIOTE contract
On an otp the vendors strung out the start way behind the sunset clause, the market ran away and the vendor exercised the sunset clause
Equally I have had many private sellers and the occasional corporate waive significant costs fees charges and opportunities to grab largish deposits and run
Ta
Rolf
It's unreasonable to expect a corporate entity to navigate moral hazards in the same way as a single human or a small group of aligned humans would, there are way to many competing commitments for a largish commercial organisation
Contracts are constructed and all parties usually have a say says to whether to accept same or not.
I have had circumstances where ....
the sellers have resold and pocketed the deposit and an increased sale price during a hot market where the buyer could not complete a TIOTE contract
On an otp the vendors strung out the start way behind the sunset clause, the market ran away and the vendor exercised the sunset clause
Equally I have had many private sellers and the occasional corporate waive significant costs fees charges and opportunities to grab largish deposits and run
Ta
Rolf
Absolutely!
I think you can read between the lines.
80K windfall at the expense of someone else, money for nothing really. A purchase falling through compared to working 10hr shifts for 5 years and saving up the deposit as an example.
