Condo Financing

[Jalise]

Just read this article that some buyers need 35 to 50 per cent down to close their condo deals. Just curious if those can not get the financing, can they walk away from the deals and get their deposits back, as in house purchasing deal, financing is usually one of the conditions.

http://www.thestar.com/business/per...e_condo_buyers_scrambling_to_close_deals.html

 

[uglyducking]

Depends on if the sale is still conditioning on buyer financing

 

[Jalise]

Wouldn't it be a very high risk for the developers? Assume the condo prices drop below the purchase price since the purchasing agreement was signed a few years ago, the buyers can just walk away with deposit? I really doubt the developers would take this kind of risk.

For the normal house purchase, the financing is only a matter of days or weeks.

 

[西西妈]

Wouldn't it be a very high risk for the developers? Assume the condo prices drop below the purchase price since the purchasing agreement was signed a few years ago, the buyers can just walk away with deposit? I really doubt the developers would take this kind of risk.

For the normal house purchase, the financing is only a matter of days or weeks.

In this case, you can only walk away without the deposit, or what the deposit for?

 

[mimi_ge]

Wouldn't it be a very high risk for the developers? Assume the condo prices drop below the purchase price since the purchasing agreement was signed a few years ago, the buyers can just walk away with deposit? I really doubt the developers would take this kind of risk.

For the normal house purchase, the financing is only a matter of days or weeks.

想全身而退的可能性是0，不死也要掉层皮。

 

[Jalise]

想全身而退的可能性是0，不死也要掉层皮。

This is what I thought. Those purchased many condo units in the recent years would have to come up with a lot of $$$ when the condo are ready to close.