It’s not an automatic right-the contract will say that the vendor can seek compensation for other financial losses or damages as well. However, you’ll need to take legal action in order to do so. If you’ve suffered other losses due to the breach, you can seek compensation for them. You would also be paying your agents’ fees or any other fees out of that 10%. So that’s automatically forfeited to the vendor. If it’s something like a settlement or some other term of the contract that hasn’t been met and they’ve defaulted on that, then hopefully you’re already holding a 10% deposit. Now, what can you get out of it? Well, if the purchaser defaults, meaning that they haven’t paid the deposit yet, then you’ll have to pursue them through the courts for that deposit. Your solicitor will be able to advise you on which option is best for your case. But if you’re looking for a more flexible option, we can serve a dual notice that is both a notice of default and a termination notice rolled into one.

If the problem is not fixed within that time frame, the seller must serve a rescission notice or termination notice ending the contract.Ĭonveyancers can serve a default notice on their clients that simply states that they are in default and need to act in order to keep their contract going. It also lists any additional costs you will incur if you do not comply.Ī purchaser who defaults on a contract has up to two weeks to remedy the situation. A default notice tells you that you have breached the contract and therefore must comply with the terms of the contract. If they do not rectify it, we can serve them with a default notice. If a purchaser does not pay their deposit, for example, we would remind them that they have breached the contract by not making that payment and ask them to rectify the problem. When someone defaults on a contract, there are a number of ways to resolve the problem. So if the vendor is in this situation, we’d act for him/her. But let’s focus on what happens when a purchaser defaults. Normally, this happens after all contingencies have been removed from the contract.

Defaulting on a real estate contract occurs when the buyer or the seller fails to meet the terms of the agreement.

Seller defaults on real estate contract