Otherwise, the seller will "fail to deliver," the transaction will not settle, and the seller may be subject to a claim from its counterparty.
The buyer would also automatically receive a +1 if after 30 days the seller had failed to make a negative report.
If a seller fails to provide the report, the seller must credit the buyer $300 at closing.
Though it is essentially a collateralized transaction, the seller may fail to repurchase the securities sold, at the maturity date.
TIME and again, he said, sellers failed to include those costs when looking for ways to lower potential profits.
"The seller at an auction sale almost always fails to realize fair market value for the property," Mr. Davis said.
The seller sold one car for £350 but failed to find a purchaser for the other.
Liquidated damages will be applied if the seller fails to meet these circumstances.
"And if the seller fails to comply with this obligation, the letter writer may sue the seller for breach of contract."
Movement by Quantum But that is not to say that short- sellers failed to have any success in the period.