Question about cancelling the contract auction after a specific period?

[gobear]

I am wondering if I have purchased the property by auction and you know there is a specific period that I have to pay in full amount?? If I decide to cancel the WHOLE contract afterwards say...2 weeks later, what is the penalty that I would have to bear?

Obviously, the deposit will be forfeited.

What else?

 

[marg4000]

Usually a purchase at auction is unconditional.

If you don't complete, you lose your deposit. But that is only the beginning. Plus, you can be sued for the expenses of another auction, another set of commission (commission is payable once the contract is unconditional) and also for the shortfall should the next auction fail to bring as much as your contract.

There is presently a case going through the courts in Queensland where a buyer who reneged is being sued for millions.

NEVER sign an unconditional contract unless you are 105% sure you can fulfill all the conditions and settle on time.
Marg

 

[Propertunity]

I am wondering if I have purchased the property by auction and you know there is a specific period that I have to pay in full amount??

Normally anywhere from 35 - 60 days, commonly 42 days but it will be stated on the front page of the contract.

If I decide to cancel the WHOLE contract afterwards say...2 weeks later, what is the penalty that I would have to bear? Obviously, the deposit will be forfeited. What else?

1. Forfeit 10% deposit. So even if you paid a 5% deposit, you still owe another 5%
2. Costs as Marg has outlined
3. Difference in price between what the next sale achieves and what you agreed to pay. i.e. Next sale $450K and you were paying $500K, then an extra $45K

Why? What have you done?