If you can’t pay the remaining purchase price by the completion date, you may be served with a Notice to Complete. This legal document demands that you complete the purchase within a given time frame, typically 10 business days.
If the deadline comes and goes, you’ll most certainly lose your deposit. You may also face financial penalties, including having to pay the seller for damages. These penalties stem from the following costs:
The seller may incur more fees for having to sell the item again.
It may cost the seller more to hold onto the item while waiting for it to sell.
The item may depreciate in value after you agree to purchase it.
The seller risks a lower winning bid the second time around.
Depending on the terms of your auction contract, you may have to cover these costs if you attempt to back out of your winning bid. You may even be charged interest every day until the item sells to someone else.
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