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October 12, 2007

Contracts

Contracts are there for us to fall back on when there is a dispute. The terms of the agreement will be written/spelt out clearly, so that the parties to the agreement are clear on what is expected of them.
For property contracts, the completion date is THE date sellers and buyers have to beware of. That date means, the property is legally being transferred to the new owner. Which means, after that date and time, the purchaser becomes the new owner and the seller will no longer have a right to stay on that premises.
Trouble with a lot of people is, they think it's a date we can negotiate upon at the last minute. When the new owner refuses to allow any extension of stay on the premises beyond the completion date, the existing owner gets annoyed. We should avoid such unpleasantness and just adhere to the terms of contract.
If the new owner is not in a hurry to move in, then sure, most regular people would grant some extension. BUT if the new owner is unable to because of his personal circumstances, it doesn't mean that the seller should get nasty and accuse the new owner of being unreasonable.
People are so selfish that they do not see everyone's position and situation.
They are so focused on themselves that only their problem is genuine.
And so we have contracts.
If we go back to the contract, the current owner doesn't have a right after the completion date, and if he refuses to hand over the unit to the new owner, the new owner has a right to get the police to evict him.
BUT for selfish people, they would try to tempt fate and refuse to move out.
I'm just amazed at how people never focus on finding solutions. If we have miscalculated the time frame, we should admit there is a problem by perhaps looking for some storage facility instead of verbally abusing the new owner.
This is the behaviour of a seller who is himself in the property market.
He obviously has gotten so used to everyone giving in to him, that he has expectations for this contract to bend it's terms to suit his laziness.
This time, he will find out that contracts are binding and if he chooses to un-bind it, it will cost him. Penalties are expensive and unnecessary.
BUT if he thinks it's just money, he surely doesn't know that for each day he delays, the cost could be as much as a few hundred dollars. Well, for some of us, we have to pay to learn.

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