What hap­pens when an of­fer falls through?

Whitsunday Times - - REAL ESTATE -

HAV­ING a sale of­fer with­drawn on a property can be one of the most frus­trat­ing and dis­ap­point­ing ex­pe­ri­ences for ven­dors.

But there are ways to re­duce the risk of it hap­pen­ing and op­tions for those who find them­selves in this sit­u­a­tion.

Paul Nu­gent (OK), di­rec­tor of Wake­lin Property Ad­vi­sory, says ven­dors need to pro­tect them­selves from the prospect of a with­drawn sale of­fer by stick­ing to strict con­di­tions.

“Never sell a property sub­ject to con­di­tions such as build­ing re­ports or fi­nance,” he said.

“Al­ways in­sist on a 10% de­posit – that will make buy­ers think twice be­fore de­fault­ing and be a source of com­pen­sa­tion if things go wrong.”

To min­imise the risk of po­ten­tial buy­ers pulling out of the deal, Mr Nu­gent rec­om­mends ven­dors ob­tain­ing a cheque for the full amount on the day the con­tract is signed.

This can be dif­fi­cult so at the very least en­sure a 5% de­posit is handed over within two busi- ness days of the con­tract date and the bal­ance in the fol­low­ing two weeks, Mr Nu­gent said.

Ideally, a savvy real es­tate agent will be able to spot a prob­lem­atic pur­chaser early and make sure a botched sale is avoided.

But if a sale of­fer does fall through, ven­dors sud­denly face the prospect of an­other ex­pen­sive and time-con­sum­ing cam­paign to try and sell their property again.

In this event, Mr Nu­gent rec­om­mends swift ac­tion, fo­cus­ing on two ob­jec­tives – find­ing an al­ter­na­tive buyer and re­coup­ing costs from the de­fault­ing party.

“En­gage the sales agent to iden­tify and ap­proach any par­ties who had been in­ter­ested in the property dur­ing the orig­i­nal cam­paign, and take ad­vice from a so­lic­i­tor about making a claim on the de­faulter’s de­posit that is held in trust by the sales agent for costs around re­mar­ket­ing the property, any losses due to a short­fall in the sub­se­quent sale price and any ad­di­tional fund­ing bridg­ing costs,” he said.

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