When deals go pear-shaped
WHAT can go wrong with property transactions? By far the most common problem is the buyer not coming up with the money at settlement.
If that happens, the vendor has the right to extend the time for settlement, if they are willing to do so, or bring the contract to an end and claim compensation from the buyer.
From the buyer’s viewpoint, it’s important to not enter into a contract to buy unless they are completely confident they can come up with the purchase price on the due date.
Another common problem concerns the condition of the property by the time settlement comes around.
The parties should consult their solicitor at the time of entering into the contract to make sure the contract is quite clear as to what is expected in this regard. CAN you get out of a contract after you’ve signed? There is a cooling-off period of three days for some transactions, but there are exceptions to that, including when the property was bought at auction.
A buyer should never sign a contract on the assumption they will be able to get out of it.
The cooling-off period should be used only in exceptional circumstances. WHAT if the fences are not on the boundary? A solicitor will give you advice about the steps you should take before signing the contract, which would include making sure the fences are in the correct place.
There may be remedies later, but a buyer doesn’t want to find themselves in the position of having to argue.