Posted on 04/24/2020 9:37:55 AM PDT by CaptainPhilFan
No. It doesn’t.
First, if your agent was smart he or she would have been suspicious of the loan arrangement. A good agent will know this. And a really good agent will recommend to punt if the deal is stalled out.
Second, we had a similar situation and the offer was extended twice and then the deal was bust. We could have kept their earnest money but we didn’t. Our agent was suspicious of the weird financing deal and cautioned us and offered us good advice to proceed... cautiously. She was able to get a pretty good assessment of the buyers financial situation up front. She was a very good agent and we knew ahead of time the risks. Anyway, we found a better more qualified buyer after and promptly sold the property. All in all, it went well but we did lose two months. We owned the property so we didn’t have a mortgage payment.
It’s a classic flip ploy.
Good one!
Now is NOT a good time to sell a house. NOT a good time to start over.
This x 100
You both rock!
Thank you for your comments.
State laws differ. In Virginia you could walk if the timeline has been prolonged or the buyer could walk over any contingency. The deposit is fully refundable regardless.
no you are not being unreasonable.
Nor any kind of expert but, generally,if I price a thing to go and I start getting any kind of runaround I move on fast.
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Agree. Runarounds are a sign of problems, and who has time to deal with or accomonated someone else’s problems? And why bother to write up the contract if you’re not going to enforce what you originally stipulated? When things start getting screwed up chances are there’s more “problematic issues” to come.
Hear Hear !! Do what Trebb says
First of all, I do not think you are being unreasonable. You agent has the same duties to you, his client, as an attorney does.
I am no expert, but I am a retired real estate broker formerly licensed in Colorado. Different states have different laws, but I suspect Contract Law applies in every state.
Is your agent representing you as your Agent? Dual Agent? or Transaction Broker? There should be laws in your state covering Agency.
I have never seen a real estate that did not state that EVERYTHING in the transaction must be in writing. Verbal changes to the contract are hard to impossible to enforce.
I do not understand a “Tentative Closing Date”. A closing date should be a hard fast date, changed only with an addendum in writing. Did the contract state, “Closing date: 3/20/2020”? If so, the buyer & the seller must abide by that date. If there are any dates written into the contract that the seller has missed with no extensions added to the contract (Contract Addendum), the seller is in default.
Was there a written date for Mortgage Approval?
Was there a written date for any inspection and or appraisal?
If Conventional Financing was in writing, any change in that WITHOUT a written addendum, in my opinion, that contract is null and void.
You also mentioned that you had a second contract came in after you had accepted the first. Did your agent talk you you or the Buyer’s Agent about keeping that as a Backup Contract? If not, Why?
Just my opinion, but if your lawyer is not knowledgeable of Real Estate Law, he is really a layman, since most lawyers, like the rest of us only attend real estate closings on property they are selling or buying.
Thank you for your insight and thoughtful opinion.
Agent is mine as a Seller’s, Listing Agent.
In NY, Closing dates can vary by 2 weeks or so under normal circumstances.
Our agent said a written extension was not necessary.
He did not advise us to take the 2nd offer a backup, but we foolishly let it pass. That’s on us.
1. You are not being a bitch.
2. If the contract period has run it is null and void.
3. Read the contract carefully and you may find that the buyers deposit is forfeited to you.
Lastly people are lying to you and not working in your interest.
Find another buyer.
Good luck
No, we have not been given a commitment letter copy.
No, the offer is not signed as an LLC - the buyer was going to set up his LLC after he made the offer - which we were not told when we accepted.
30 days to get financing and 6 weeks to close passed around March 4 and 20th.
Yes, he is a realtor and yes we were told that.
Thanks so much for your input.
I just closed a home sale on April 15, so it is possible in this coronavirus era. Once the due diligence deadline passes, the earnest money deposit is yours, and you can be pretty sure that the buyer will not walk away.
The appraisal was on April 1 and the closing was set for March 30. You probably mean it was inspected, not when the lender got the written report, which would be a few days later if the appraiser wasn’t swamped with work.
Property being sold as is and buyer did not get an inspection.
I’ve been asking if he has gotten a mortgage or financing for whatever it is he’s trying to do and haven’t gotten an answer.
Yes, if the deal can be salvaged we will give him 2 weeks, it’s not easy being a good sport under the circumstances.
Thank you so much for your help.
Thank you Silverleaf.
Yep.... it’s definitely a buyers market given the current “situation”.
Lots of great deals to be had.
It’s a week away from being 3 months ago that we signed.
I agree about the current health situation being a killer of all kinds of things, but the rest of the murky deal has my guts in knots.
Thank you so much for your input.
3) The current covid 19 is disrupting the market. Why not give the guy 2 more weeks before pulling out?
But double the earnest money to see his good will.
I’m not in real estate. I got my credentials once! I bought 2 houses. One I wrote my own offer.
So my credibility is ZERO!, but that doesn’t stop me from having an opinion.
Cancel the deal, keep the money, put it back on the market.
IF you want to be nice.... you can tell him that when the house actually CLOSES! you will give him the money back. (I wouldn’t).
If he can complete the deal before you make another deal he can submit a NEW offer, with MORE CASH. If it goes through he will be credited with ALL of his deposits. If it falls through AGAIN, keep ALL the money!
A deposit, is a good faith offer that they will follow through with a contract. Break any terms of the contract, they FORFEIT their deposit.
That is what a deposit is for!
I gave a $1,000.00 deposit on a piece of land that I found out afterwords had major problems that I had overlooked and could not abide. I cancelled the deal and I never even asked for my money back.
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