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We have been renting this house for almost 2 years now, in December the owners told us they wanted to sell the house. (The owners used to be real estate agent and are NOT currently licensed.) My husband and talked about it and agreed that we would like to buy the house. My husband has a VA loan we can use!
The Owners said they already had a mortgage guy who has done deals for them in the past (OK?) there was never a discussion on the final price of the home with the Owner. There came a point where we were asked to meet with the mortgage guy and sign some papers. at this time we asked what they were wanting for the house he said $400-410. OK that is fine (so we thought) at this time we had not been pre approved for the VA loan yet. A week or so later we were asked to go by the mortgage guys place again and sign more stuff, this time he had the approval from VA and it was for $435K, and now the price of the house went up to (you guessed it) $435K. And honestly we were ok with the price (at this time) seeing where it was and the acreage it was on.
A few weeks went by and the owners wanted to come by to have us sign more papers, this time the Owner was having us sign the "Purchase agreement" for $435K. OK Still fine with it, then we started really researching the comparables in the area.... They are only coming in at $320-$380! WOW... we told the owners a few days after we signed the contract about the com[arable homes and they said lets see how it appraises. OK, so we get the appraisal back and its $355! Now after the contracts are all signed the owners want to back out! we wanted to keep the house but renegotiate the contract at the lower cost. They do not want to sell at all, and are now asking us to MOVE out !! They want to live in the place to fix it up to turn around and sell it.
So my questions are:
1 - was it legal for the owner to use himself as an agent? (how do i know if he is also taking a commission)
2 - can I get the original mortgage documents? (I want to see at what point they increased the price)
3 - can they make us move, how much time do they have to give us?
It doesn't matter that he was formerly licensed as an agent. If he is unlicensed, he can sell the house himself (in many states a licensed agent can still sell their own personal residence, provided that fact is made known). And he's not acting as an "agent"--because an agent is one who represents another.
Ask for a copy of the mortgage documents (not sure how that's relevant to the price).
Unless there are time restrictions in your contract, you could probably sue to enforce the sale at your contracted price of $435,000--but why would you if it appraised at $355,000? There is no requirement that they negotiate further if the appraisal comes in low.
Are you under a month-to-month agreement...or do you have a lease? Read your contract as to what notice needs to be provided. Absent specific mention in your contract, your state law may dictate what notice is required.
It sounds like you better start looking for another place to live.
Last edited by jackmichigan; 03-02-2016 at 12:35 PM..
Reason: corrected to note that Seller was not licensed
So my questions are:
1 - was it legal for the owner to use himself as an agent? (how do i know if he is also taking a commission)
2 - can I get the original mortgage documents? (I want to see at what point they increased the price)
3 - can they make us move, how much time do they have to give us?
Thank You Cirian7673
1. If the agent isn't licensed anymore then there is no agent representation involved in the contract. Sellers can sell their own homes without representation. Just like you can buy a home without representation like you apparently did.
2. Talk to your lender, but generally speaking you are supposed to get a copy of documents at the time you sign them. That is contracts 101.
3.There is no requirement that sellers come down to appraised value so unless you are willing to bring in the extra cash for the VA loan to make up the difference, it sounds like you can't afford to buy the house at contracted price. How much time they have to give you to move out depends on your state laws.
I'd encourage you to hire a buyer agent next time you want to buy a home. You really need help navigating the process.
Thank you all, We are looking for another place. and we did get an agent this time. We are just hoping they dont push us out the door in 30 days. with kids in school and the area we live in is very limited to the homes that are for sale. Peolpe just don't leave lotus, ca. lol thanks again, i will look at everything you all suggested.
I think whatever your offer was for is the loan amount, Now that it appraised less you can't get the loan so they can back out and don't have to sell for less or the appraised price. Unless they signed saying that they would sell for the appraised price they can back out.
They need to give you a 60 day notice since You leased the property over 1 year. This does not have to be on the 1st or 15th or any other specific day, so keep in mind if / when they do you will have 60 days to vacate.
If you find a new place you will need to give them a 30 day notice.
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