Property problems: Suspicious vendor has to prove bad faith
Sunday 18 April 2004
Q. I read your recent article on purchasers' obligations to fulfil conditions with great interest.
Having had my two-storey suburban warehouse on the market for some months, I was relieved to finally get an unconditional offer. The offer was a bit low so I entered into good-natured negotiations with the purchaser, who agreed to increase the offer by $50,000, but made it subject
By The Landlord
to getting satisfactory finance.I understood from our discussion (and in today's market) that the finance condition was all but a formality. On the date for confirmation of the finance condition, I was amazed to be told that my purchaser had not obtained finance and was pulling out of the deal. I found this hard to believe given the other property I knew this purchaser owned and the "lifestyle" he enjoyed.
Having asked around, it appeared my purchaser had just found a better deal. I don't think he has honestly been refused finance. What can I do now?
A. The first step is for you to find out exactly why the purchaser has not confirmed the finance condition. As vendor, you are entitled to ask for reasons because the purchaser has a contractual obligation to take all reasonable steps to obtain finance. You should instruct your solicitor to formally request reasons from the purchaser.
Read More - Opens in a new window
Commenting is closed
Property News
More than fair “wear and tear”
Proving tenant liability for damage has long been a major worry for landlords but a recent Tenancy Tribunal shows that it can be done.
House Prices
No stopping Capital price rises
There’s no sign of a slow-down in Wellington’s property prices with Trade Me Property’s latest data showing that asking prices continue to rise solidly.
Mortgages
LVR loosening likely - ANZ
LVR restrictions were never meant to be a permanent feature of New Zealand’s housing market and ANZ economists argue that some further relaxing of them could soon be on the cards.
