Buyers Obligation Regarding Contingent Sale? (sales, townhouse, closing)

[mingmelissa]

I put an offer on an house a year ago contingent on my townhouse selling. The offer was accepted and the seller and I have been extending it every 60 days or so for the last year.

The problem is my townhouse has not sold! I have done eevrything my realtor has suggested. Even lowered the price to the point where i would have to bring money to the closing.

The current contingent sale contract expires in a few weeks! I have found a builder who is willing to buy my townhouse if I buy their house. What are my options and obligations with the seller of the other house? Will I get my earnest money back? Do I owe my realtor anything?

[chet everett]

If you are asking if the expiration of the multiple extended sales contract will release your earnest money I would say the simple answer is almost certainly.

You seem to have done everything possible to try your house sold and it just has not happened. If the seller is upset, that is understandable, as they have apparently also done everything they could to help you buy their house, but legally both sides have to agree to any sales contract extensions and if you no longer want to extend the contract your earnest money should be returned.

This is not uncommon, and hopefully the seller's agent has been doing everything they should to keep other potential buyers aware of the possibility that the house would not close due to contingencies. It seems to me, however, that since the seller always went along with the extensions that perhaps the seller's agent was not doing this and/or you were the only person that showed any interest in the house -- in that case the seller may be upset, but that anger should be directed to the agent who never could bring in any other offers as "backup"...

Good Luck!

[middle-aged mom]

Sounds to me like you both have been chasing a down market.

Why would a seller tie up their property for a year, in hopes that the buyer will be able to sell their existing place?

Speculation on my part here....More than likely this place is not worth what it was a year ago and you are still willing to pay last year's price, when no one else will. How likely will this place appraise for what you agreed to pay? What are other comparable units closing at, right now?

Before you do anything, find out the details associated with the builder buy-out. I would be surprised if they are willing to pay your asking price, despite that you will need to bring a check to the closing table.

If you really want to sell, you are likely going to need to bring an even bigger check to closing. Are you willing and able to do this?