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Thread: breach of contract process

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    breach of contract process

    i sold a property a year ago and the purchaser hasn't paid some tranfer fees despite several notices of payment. i want to cancel the sale. the property is not registered to him name yet. what are the processes of claiming legal costs and damages? do i have to go to court to do so?

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    Diamond Member Justloadit's Avatar
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    You require an attorney to get involved, and read the OTP (Offer to Purchase). This dictates what you can and can not do.
    Victor - Knowledge is a blessing or a curse, your current circumstances make you decide!
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    lungz (31-Aug-11)

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    okay it says the "defaulting party is not entitled to any refund of any moneys paid...and all the monies paid on that date (cancellation date) shall be forfeited in favour of the innocent party being a reasonable and fair amount of the estimated damage suffered by the innocent party through the breach."

    I have an attorney. I'm assuming I do not have to go to court for any claims then...?

    thanx for the input.

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    Diamond Member Justloadit's Avatar
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    Yes, but what are the Clauses referring to the cancellation itself. When can you cancel a sale? Something about "Breach of sale" or something, that's what will govern how the cancellation can occur.

    There also maybe a "Subject too" clause somewhere which may have merit.
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    Site Caretaker Dave A's Avatar
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    If the purchaser has been formally put on notice and failed to remedy their breach, at worst you (your attorney) might have to obtain a court order for the funds held in trust be released to you. It would be up to the purchaser to mount a reasonable defence.

    Just a word of caution as you head down this road - the debts incurred in getting to this sort of point are typically not subject to successful transfer. The decision to cancel isn't one to take lightly, especially if there are only small deposits at stake.
    The trouble with opportunity is it normally comes dressed up as work.

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    lungz (01-Sep-11)

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    I can cancel the sale anytime that the breach occurs, there is no "Subject too" clause but I assume it is under the "Breach" clause in which case I also assume "subject" is refered by "defaulting party" but I think it'll be better to consult my lawyer

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