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Question
What are the implications after a house is sold confirmed and the principal applicant refuses to sign the mortgage papers and the possession date has ended? What steps should be taken if I am unable to get a mortgage? Can I end the contract and how much will it cost? The buying agent has collected $10,000.
Hi Gladwyn,
If it's a firm deal and you can't arrange a Mortgage the deal will fall through and
the property can go back on the market. You may be on the hook for the difference in price plus expenses?
Your deposit of $10,000 will be held by the courts until a settlement is made.
It's possible that you may lose your full deposit plus other expenses.
Why didn't you make the offer Conditional upon satisfactory Financing? I don't have enough details.
Contact your Real Estate Agent and your Lawyer A.S.A.P.
Good luck,
Derek
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| Rating(1-10) | Knowledgeability = 10 | Clarity of Response = 10 | Politeness = 10 |
| Comment | Thanks Derek, I should have made the offer Conditional upon satisfactory Financing had I known. This was my first time buying a home and trusted the agent, now after your response I will be more careful, the agent has lost my trust. | ||
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Answers by Expert:
Derek Hamilton
Expertise
Any questions relating to Residential Real Estate in the City of Toronto or Southern Ontario. How much is my home worth in todays market? What's involved in Buying Real Estate ? How much do you need for a down payment? What's involved in Buying a Condo? What's involved in Buying a Co-op? What do you need as a deposit? How to choose a good Real Estate Agent for your property? What should you do to prepare your home for the market? How much Commission should you expect to pay? What are the expenses when Buying or selling your property? Should you have your home Staged for the market?
Experience
Residential Real Estate Sales Representative in Toronto Ont,Canada for 25 years. Award winner for 20 straight years with Royal Lepage & Sutton Group. Prior experience was 10 years building new custom homes & Renovations in North Toronto. I have a total of 30 years experience in the Residential Real Estate field.
Organizations
I also subscribe to the Georgian Triangle Real Estate Board in Collingwood & the surrounding areas.
Education/Credentials
George Brown College "Carpentry", Continuing Education with the Toronto Real Estate Board. Member sinse 1985.
Awards and Honors
Platinum Award 2000-2008
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