what exceptions allow to resind contract and get earnest money back? (Atlanta: real estate, mortgage broker)

[Mercedes Benz]

My husband & I have a home in NJ and don’t intend to move right away, but we have signed a contract to purchase a home in Covington, GA as our future permanent residence. The seller has moved up the closing date to March 21, but we told our realtor and mortgage broker in February that we are going on a vacation (already planned and paid for) and can’t close until the first week in April. Our agent and the listing agent are pressing hard for 3/21/2011 while knowing we have prior commitments. It is a Fannie Mae Home Path property and the seller has made no concessions. Now we are told the seller doesn't want to make another interest payment on the house and will rescind our offer and put the house back on the market if we don't close by their settlement date and we would forfeit our earnest money. Since we'll be away on March 21, we can't possibly be available to travel to GA. In addition, we signed an addendum to extend the closing date (but we haven’t received signed copies from the seller agreeing to the extension.) Can our defense for getting our earnest money back immediately from the seller and mortgage broker (without dragging this through litigation) be due to extenuating circumstances? We did notify both our realtor and the mortgage company at least six weeks in advance that we can't close on the seller's date. We have shown all intention of going forward with the transaction, and we have submitted all paperwork in a timely fashion. I might also add our exclusive contract with our realtor expires 4/11/2011.
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[rcsteiner]

Originally Posted by Mercedes Benz

My husband & I have a home in NJ and don’t intend to move right away, but we have signed a contract to purchase a home in Covington, GA as our future permanent residence. The seller has moved up the closing date to March 21, but we told our realtor and mortgage broker in February that we are going on a vacation (already planned and paid for) and can’t close until the first week in April. Our agent and the listing agent are pressing hard for 3/21/2011 while knowing we have prior commitments. It is a Fannie Mae Home Path property and the seller has made no concessions. Now we are told the seller doesn't want to make another interest payment on the house and will rescind our offer and put the house back on the market if we don't close by their settlement date and we would forfeit our earnest money. Since we'll be away on March 21, we can't possibly be available to travel to GA. In addition, we signed an addendum to extend the closing date (but we haven’t received signed copies from the seller agreeing to the extension.) Can our defense for getting our earnest money back immediately from the seller and mortgage broker (without dragging this through litigation) be due to extenuating circumstances? We did notify both our realtor and the mortgage company at least six weeks in advance that we can't close on the seller's date. We have shown all intention of going forward with the transaction, and we have submitted all paperwork in a timely fashion. I might also add our exclusive contract with our realtor expires 4/11/2011.
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I would talk to a lawyer.

[cwkimbro]

Yea this is a lawyer question. The sad thing is... if you have a representing agent they ethically bound to answer this question for you and listen to your demands in negotiations.

Real quick... out of curiosity... was the closing date of the contract after 3/21 and then the seller tried to move it up?

If so the contract is in your favor unless you signed something else. What the realtor might be doing is trying hoping to convince you to deal with a difficult person.

Or was the closing date on the contract 3/21 and then you signed (and tried to get them to sign) addendum to push back the closing?

Just out of curiosity... how set in stone is the vacation? Are the extenuating personal reasons for those dates? If not..have you tried tried moving dates and at least totaling up the cost of moving the vacation? (and compare those costs to the earnest money and/or lawyer fees). I think it is worth examining that, but don't let that stop you from at least running this by a real estate lawyer and ask for advice.

[flyonpa]

What does your Contract that you sign'ed say? or did you sign a sup that changed the date?

You Don't need to be at your closing. You can send your Attny with a power of atty to sign on your behalf. When I bought in GA, I had my Atty go to the closeing, I was in PA at the time, I was conf, called into it. Turned out the seller needed to get a death cert, and the closing got delayed till the next day at mid closing. If i had flown in for the closing I would have only come in for the day. And would not have been there for the re-scheduled one the next day.

[AnsleyPark]

Originally Posted by rcsteiner

I would talk to a lawyer.

Definitely talk with a lawyer. Direct message me and I can refer you to a local real estate attorney. I think, however, knowing no more than what is in the original post, that you will have significant challenges rescinding the purchase agreement. Generally, "extenuating circumstances" are those things that are the result of so-called acts of God - natural disasters, for instance. Further, the extension amendment would not be effective without the seller's signature as well.

[Kenmudan]

My agent in Atlanta asked me to pay my earnest money with my offer, ( full asking price) which I did now she has come back to me a week later saying she has multiple offers and I could either increase my offer price or she would refund my money minus an Administrative fee. Is this normal practice

[jeoff]

Originally Posted by Kenmudan

My agent in Atlanta asked me to pay my earnest money with my offer, ( full asking price) which I did now she has come back to me a week later saying she has multiple offers and I could either increase my offer price or she would refund my money minus an Administrative fee. Is this normal practice

I am not a lawyer or an agent, but I have bid on a lot of homes and bought a handful.
So, she charges you for each unsuccessful bid on a house? I don't think that is not what earnest money is for. I would think that the only way another party could keep any earnest money is if the contract is accepted at some point--and this contract was not. If they charge administrative fees to make a bid, it is probably time to get a new realtor.

[LovelySummer]

WTH? The earnest money is for the seller to take if you default on a binding contract. You do not have a binding contract unless the seller accepted your offer. First off, it is not this lady's money to take ANY FEE out of in the first place. Second, she is not entitled to an administrative fee. A realtor gets money when the deal closes and at no other time. I would tell this shady person she'd better give me every penny of my earnest money or I will report her to the state licensing board. Then I would fire her (after getting my money). Her practices are questionable. You cannot make money off of ppl places offers and you definitely cannot dip into money provided for the seller. WTH???

Eta: also, if you are working with the seller's agent instead of having your own agent (a buyer's agent), the same still applies but get a buyer's agent. The seller's agent is working in the interest of the seller, not you. You might as well be going into a transaction with absolutely no one on your side in terms of setting pricing, contingency clauses, etc. Never go in wout your own agent. The seller pays for the agent commissions so it does not cost you anything to get your own agent. Read up on home purchasing.

[bUU]

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