360K Lesson | Mortgage Weekly | Aug 5th, 2017 | Jason Roy | Edmonton Mortgage Broker

All right Mortgage Weekly time So I was reading a article this week I put a link to it down below but if you want to check it out but read an article about a situation where some buyers had put an unconditional offer on a home in the Vancouver area kind of right at the peak of the craziness and come time to take possession a few months later I don't know all the details they weren't in there but they decided for whatever reason that they weren't going to close on that purchase

So they walked away and they lost their sixty thousand dollar deposit and they probably thought that was going to be the end of it but that's not the case I think a lot of people are maybe not clear or misunderstand what actually can happen you don't just lose your 10 or 20 or 30 or 50 or whatever deposit that you put and the sellers just keep that and you get to walk away the sellers then have the legal right to sue you for a breach of contract and really could sue you I think up to a total value of of the property for you not completing that transaction In this case the sellers took them another like five months or something to sell the house as the market had gone down a little bit and they said selling for 12 million or whatever it was they sold it for like nine hundred and ten thousand dollars so the courts at this point have awarded the sellers that the buyers need to pay them pay them the difference need to pay the difference less their sixty thousand dollar deposit so yeah this big chunk of money you know all of the sudden you gotta pay a few hundred thousand dollars out of out of pocket you got to cover you know the expenses from the seller all that sort of stuff not just walk away and you know lose your deposit and forget about it so Edmonton market and most of Alberta is not quite that way I do see the the odd unconditional offer but more in the BC market do I see the unconditional offers I'm always will tell you never to go conditional I can never suggest that you go unconditional is there's no not just your personal financing but your the property that you're buying needs to be approved by the lender it needs to appraise and value all that sort of thing I get that it's very competitive in some places and you don't always have a choice but these are the things I need to think of if we can't complete on this transaction what is going to happen A are you willing to lose your ten or twenty or fifty or whatever thousand dollar deposit and B are you prepared that it could be a lawsuit where the sellers can come after you for the for the rest of the shortfall if they're not able to sell it or what he were willing to pay for what you agreed to pay for it so keep that in mind if you're going to go unconditional just be prepared that you know walking away isn't really an option and I guess if you're a seller and you have an unconditional offer and the buyers do not complete then obviously you talk to your realtor and talk to your lawyer and figure out what your options are so anyway have a look at the article it's pretty short but it gives you a kind of a good overview there's not a lot of detail and the specific reasons why it happened but it gives you an overview of what kind of a case was and what the result was Interest rates this week not a lot of changes and somewhat settling I see a couple of rate specials popping up here and there but I nothing spectacular so kind of holding steady anyway hope you have a good weekend and it's a long weekend so we'll talk to you next week sometimes Ciao

Source: Youtube

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