You want insurance because they have the lawyers to litigate and pay the settlement.

@Kris Walker Your Agent SHOULD get into hot water if it becomes known to the Seller that the Agent then found a higher Offer, way before settlement date (and therefore should have known that such a higher Offer was likely in the first place), and if the Seller also became aware that the original Agreement was to an Investor who was looking to flip it anyway but now that same investor (you) wants to wholesale it instead by pocketing the difference, but the Seller is told bad luck, because the Agent just wants his Commission, both coming and going(?) 

I can tell you that any settlement of delay penalties is almost always settled with lawyers, because neither side admits its their fault. 

The borrower must have sufficient funds to cover borrower-paid closing costs and fees at the time of settlement.

Here’s our situation:House and Land Package priced at $384,800 in Minto, NSW.Feb 2, 2013 – Exchanged contract with the land only as my solicitor said she will only do the land part of the deal and the building contract/discussions will be between me and the builder only.April 19,2013 – Land was released from Land Titles office.April 24,2013 – Settlement of the Land.April 29, 2013 – I have called the builder to inquire if everything is ready to go with the lodgement of the building plans.

That certain Letter of Approval For the short Sale of Real Property, dated xx, Xuly, 20xx shall be conditioned upon the satisfactory execution of this "Agreement" prior to settlement of the contemplated sale transaction.....

Good for you - I have discovered long ago that a seasoned investor knows lots more than an agent - agents are trained to protect their broker, represent buyers, list properties and to stay legal - I have always inferred that if agents knew what investors know - they'd be investors  representing themselves.Keep your offer simple - you don't need all that stuff that agents are required to have in their offer (you know agents do not write contracts - they can't unless they are a attorney - they can only legally fill in the blanks on a form contract of sale) - so over the many years of investing - negotiating - developing and trying to make money in real estate - I have the good fortune to have created what I call my Skinny Contract   - this is a one page contract with only one out clause - it is easy to understand by the seller and all involved in the chain that reaches to  the settlement table.    

Offered 1.1 with escalation up to 1.4, incremented at 26.5k, as-is, no inspection contingency, VA financing contingency, 21 day close, seller preferred settlement agent.

If the settlement of the relinquished property occurs between October 18 and December 31 of the current year, for individual taxpayers, the 180-Day Exchange Period will be shortened to the due date of the federal income tax return of the next calendar year unless a timely and proper IRS extension is filed for their return."

I received a spreadsheet from my realtor that showed what we would be getting back at settlement for specific selling prices.