Breach of Contract Real Estate

Breach of Contract Real Estate

What happens when you get your offer accepted as a buyer in real estate and walk away? Its called a breach of contract, and thats
whats coming up next!! Hi this is Alex from Royal Pacific Realty
in Vancouver, and this is Canadian Content eh. If you are new here, hello !! And welcome!! I talk about everything real estate in the
vancouver area, with new videos every Tuesday and Friday. Hit that subscribe button and that little
bell. Because being a smart savvy consumer is a good idea eh?? I just met up with a first time home buyer
the other day, and they were writing an offer on a home. They asked what would happen if they ended up walking away from the deal that ends up getting accepted. In this video, I will discuss the 3 likely
results, if you breach a real estate contract as a buyer. 1. The Deposit – when you write an offer in real estate most likely you would have put up a deposit in good faith to secure the contract for the home. The deposit on a real estate contract is usually 5% of the purchase price. This contract when agreed upon is firm and the deposits are non refundable. Some times as a buyer things happen, maybe your mortgage fell thru before completion, or you just lost your job. Another situation is that the market shifts
in an extreme negative direction, and you would rather walk away from the deal than to complete it. If you breach your real estate contract you
would first lose your deposit. 2. Lawyer Fees – all real estate contracts involve a seller and a buyer. If you walk away with any contract there will be penalties. In most cases the seller will take you to
court and you will end up spending money toward lawyer fees. Remember, Lawyers are not cheap, at about $500 per hour. 3. Equity loss – the real estate market is up and down, once you have an offer accepted the seller puts the home on hold for you to complete the transaction. Over this time period, the market could have shifted from a really good market for the seller to a really bad market for the seller. An example could be a home that sold for $1.5 MILLION during a good market, but the same home is only worth $1.3 million during a bad market. The seller can end up suing the buyer for
that $200,000 difference. So the total penalties that can occur if you are unfaithful to your real estate contract is the loss of your deposit, the lawyer fees, and the total equity loss. If you have any questions about this topic
please feel free to reach out to me. If you are interested in buying a home in
vancouver please watch my playlist over here. Question of the day, would you walk away from a real estate contract? Please leave it in the comments below. I will try my best to personally answer all
comments myself. As always please like, share and subscribe and become smart savvy consumer. I make educational videos every Tuesday and videos every Friday. This is Alex from Vancouver and Thank you so much for watching this video eh?

2 thoughts on “Breach of Contract Real Estate

  1. Would you Breach a Real Estate Contract? Yes or No

  2. Hi Alex, is it breach of contract if I ask a simple question to another realtor.

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