Check the deposit and resale consequences after the purchaser's essential default
Key facts
- Human involvement
- YellowClose supervision
- How AI is used
- If a termination for the purchaser's essential default is being considered, record the price, the deposit, any other money paid, the date of any later resale contract, and the resale price. Calculate 10 per cent of the price and 12 months from the termination. Do not write a termination notice, and do not decide that the default is essential.
- What the lawyer must review
- The lawyer decides whether the purchaser has failed to comply in an essential respect and writes any termination notice. After termination the vendor can keep or recover the deposit to a maximum of 10 per cent of the price, hold other money paid as security for 12 months or until proceedings commenced within those 12 months are concluded, and sue either for the deficiency on a resale under a contract made within 12 months, with credit for the deposit and after allowance for any capital gains tax or goods and services tax payable on anything recovered under the clause, plus the reasonable costs of the non-compliance and of resale and any attempted resale, or for damages for breach. This is the consequence after termination. It is not the notice that calls for completion. Confirm the printed edition.
- Written for / version
- US
Open a jurisdiction version of this task to see which instruments apply: US
Who does what
| Role | What they do |
|---|---|
| Assistance | If a termination for the purchaser's essential default is being considered, record the price, the deposit, any other money paid, the date of any later resale contract, and the resale price. Calculate 10 per cent of the price and 12 months from the termination. Do not write a termination notice, and do not decide that the default is essential. |
| Lawyer | Set the scope, supervise the work closely, verify every part relied on, resolve omissions and exceptions, and approve the exact output. |
Checklist
- The deposit kept or recovered is capped at 10 per cent of the price.
- Other money is held for 12 months, or longer only if proceedings start within those 12 months.
- A deficiency claim needs a resale contract made within 12 months, with credit for the deposit. The lawyer writes the notice.
Sources
These are suggested working checks. Confirm the required checking with the responsible lawyer before work starts; the checking approach does not establish permission to use AI.