Asked by DANI
Dear Gurus, I am interested to know who is liable given the following scenario.
- Buyer prepares a 1% booking fee (option money) however, held in trust with the his agent during the offer to purchase period.
- Without the buyers consent His agent submits the check to the sellers agent.
- The seller banks the check and issues a signed OTP.
- OTP is delivered to Buyers agent from the sellers agent.
- THe OTP is never delivered to the buyer and OTP subsequently expires.
Note that the Buyer was never aware of the above transaction after calling off the deal during the offer to purchase period. Thus, no instruction was handed over to the buyers agent.
We assume that the buyers agent knew the buyers current home address, contact details etc. Thus there is no incapacity to make due contact with the buyer by his agent
We assume that the seller was only taking instructions from his agent.
Who ultimately bares the cost of the forfeited 1%?
- Buyer prepares a 1% booking fee (option money) however, held in trust with the his agent during the offer to purchase period.
- Without the buyers consent His agent submits the check to the sellers agent.
- The seller banks the check and issues a signed OTP.
- OTP is delivered to Buyers agent from the sellers agent.
- THe OTP is never delivered to the buyer and OTP subsequently expires.
Note that the Buyer was never aware of the above transaction after calling off the deal during the offer to purchase period. Thus, no instruction was handed over to the buyers agent.
We assume that the buyers agent knew the buyers current home address, contact details etc. Thus there is no incapacity to make due contact with the buyer by his agent
We assume that the seller was only taking instructions from his agent.
Who ultimately bares the cost of the forfeited 1%?
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