Ever wonder what happens if you, as a buyer, were to just walk away from an unconditional offer? Whether you submitted an unconditional offer or had conditions and then removed them, that contract is binding with the expectation that you will complete when the closing day comes.
For one couple in Surrey, however, they didn’t get so lucky with their buyer. Back in May 2016, these sellers accepted an unconditional offer for over $1.2M on their rancher home. All was well until completion rolled around on September 1, when the buyer simply walked away from the deal. The news didn’t release the reasoning for the buyer’s inability to complete; however, it made a mess of things for the seller.
Not only did the sellers lose their high-priced offer but they also had to contend with a change in market situation. In the middle of August, a few weeks before the deal was to complete, the BC government implemented its foreign buyers’ tax and, while there isn’t direct proof that that decision alone dried up the high-priced pool of buyers, the market definitely changed and the sellers weren’t able to find another buyer willing to pay that first amount of money.
In the end, they sold for a heavily reduced price after spending another five months on the market. The sellers were understandably frustrated by the overall ordeal and have since sued the original buyer for damages. The moment the buyer didn’t complete the deal, he did forfeit his deposit to the sellers; however, they successfully sued for the difference in sale prices.
Unfortunately, the sellers may not see the awarded penalty. The buyer will likely apply to have the judgement overturned.
So, are you a buyer ready to make your offer? You need the confidence to walk through the phases of your deal, so you don’t make a decision you’re unhappy with. Working with a Victoria real estate expert can help guide you through the whole buyer process, giving you the confidence to make that next decision. Until next time!
Kaley + The Haro Group