Rare case of a bank holding up a sale

Obviously the vendors had other commitments to the bank but I have never heard of this before. The damages the bank may have to have paid had they significantly stalled the deal (or if the sale/purchase was abandoned) could have been great … let alone the bad press.

Bank blocks sale then backs down, buyer claims
A house hunter is claiming victory over a bank in a battle over a stalled home sale.
John Moser, of Masterton, found himself in a legal battle with ASB Bank when, he says, it told the vendors the offer they had accepted for their home was “too low” and they should back out of the deal.

The vendors of the three-bedroom home in Richmond Rd, Carterton, accepted Mr Moser’s $170,000 offer on March 22. Both parties signed a sale-and-purchase agreement and Mr Moser paid a 10 per cent deposit.
Mr Moser and his lawyer, Peter Richardson, of Upper Hutt Law, said this agreement contained no clause permitting the vendors to back out once it was signed, and it was conditional only on Mr Moser completing certain tasks, such as a building inspection, which he did.
But, according to Mr Moser, the selling agent from Harcourts then told him the vendors’ mortgage-holder, ASB, instructed the vendors to withdraw from the agreement because his offer was too low and would not cover the vendors’ debt. …

Full story at Stuff.co.nz

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