Resale window on cancelled contract

[Real-istic]

Hi all,

I have question regarding cancelled contracts if anyone knows the answer.

After a contract has gone unconditional, didn't settle then passed the default time and was cancelled, what are the remaining time constraints? I know that the deposit if forfeited, and if the property resells and a lower price is achieved the original offer was for, the right to sue for damages to recover this loss is available. I am pretty sure the amount of the loss has to be "crystallised" though. i.e you can't just say the market has dropped X$ since the contract fell over so I am suing for the difference.

In theory if the vendor does not actually decide to sell again and holds the property then they never realise the loss and therefore can't sue to recover it. Or if they wait years and it devalues further (unlikely but hey who knows) does a loss kick in then? or is there some sort of statue of limitation on time?

Has anyone had experience around this sort of thing?

Cheers

 

[Ausprop]

depends on the contract you signed up under. if you used the standard joint form, then I think that you have 1 year from the date of settlement to actually crystalise the loss.

usually the buyer makes the release of the deposit conditional upon the vendor releasing them from further liability - a culmination of events i think they call it.

Without being a lawyer, I believe that in claiming the damnages you need to show genuine attempts to achieve maximum sale price, present all offers that were made to the courts and it will probably be a couple of years and a good $50-100k on each party in legals and court costs if it gets heated