What happens if I default on the sale or fail to come up with the balance of the purchase price and/or costs?
The seller will reserve his/her right to take the necessary legal action against you should you go into breach of contract or fail to fulfil any of your obligations in terms of the Conditions of Sale. They can exercise their various options, which will be stipulated in the Conditions of Sale. Ultimately you will be held liable and responsible to fulfil your obligations. Should you still remain in breach of contract, all monies already paid by you to the auctioneer and/or seller will be forfeited as “rouwkoop” (pre-estimated damages). It is very serious to go into breach after an auction and legal action will be taken. Therefore if you harbour any uncertainty, it is better not to bid.
Related Questions
- WHAT HAPPENS IF THE HOUSE I AM SELLING (OR BUYING) IS APPRAISED FOR LESS THAN THE SALE (PURCHASE) PRICE AND WHAT ARE MY ALTERNATIVES AT THAT POINT?
- I can’t understand why conveyancing costs vary so much and what would be a fair fee to pay either on a sale or purchase of a property in NSW?
- What percentage of the purchase price do the costs represent?
