How Fast Can You Loose $118,500 ???

Contract terms.  Interesting???

In December of 2005 I had a buyer in contract with a requirement for closing of December 24, 2005.  He had a deposit of $118,500 on the table.  All contingencies had been removed.

The date came and the date went.  No big deal, said the buyer.  We can close tomorrow.  Tomorrow turned into T+1, then T+2.

The contract called for a written notice of default and then 3 business days to cure.  I did my part, buyer did not do his.

We had a back up contract, subject to ultimate default, from buyer #2.

It was a slow market.  It didn't matter.

Buyer did not close and lost $118,500.00.

Buyer # 2 closed at the same price as Buyer #1.  Seller got contract price ++ $118,500.

Here is the point - - The little documents called "Purchase Agreements" need to be treated as DOCUMENTS WITH CONSEQUENSES. 

It is very important that timelines be followed.  You could burn $118,500.  Maybe more.