Monday, Jun 16, 2008
Take Gazundering to a whole new level!!
ThisIsMoney: Housebuilders hit by gazundering
"Housebuilders, already reeling from the fallout from the credit crunch and tumbling house prices, face a new menace - 'gazundering' by buyers after they have exchanged contracts" but buyers are sha*ted anyhow, 'cause "'It is sometimes cheaper for them to walk away from the deposit.'
Posted by confused76 @ 11:38 AM (375 views) Add Comment
2 Comments
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1. cornishman said...
I would have thought that developers would sue for completion of contract - especially if the purchaser has other assets.
Either that - or sell to someone else for whatever they can get and then sue for the balance.
It doesn't seem right that someone can just walk away from the deal - even if they forfeit their deposit.
2. European-bear said...
Cornishman ... yes a contract is a contract. But people walking away and forfeiting deposits shows how bad it is getting. It is better to loose their deposits and risk being sued then complete on a rapidly depreciating asset. The builders can sue, but if the buyer was relying on a 100% mortgage, or a very high LTV, the buyer will have nothing so the builder is wasting time and money taking legal action....In the last crash there were plenty of reports of people walking away from a deal AFTER contracts were exchanged.....Its going down, down, down!!!!!!! The titantic is holed and sinking fast!