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We are purchasing a house in PA and selling our NJ home. We have a buyer and are set to close and purchase the olh home and new home on the same day in mid July. My PA realtor is trying to get us to remove our Sale and Settlement contingency from our contract to please the builder of our new home. She said my buyers have the mortgage commitment so there is no need to keep this clause. We feel if anything should happen and the sale of our current home falls through this clause protects us financially with the new house.
Is my realtor telling us correct info or is she leaving us unprotected and trying to just make the sale?
I have had cash deals fall apart days before closing where the buyer walked away from thousands.
You may get the earnest money but could get hurt on the purchase (any earnest money you have there).
The clause is there for a reason, I would not remove it unless I was certain they are going to close. If there is any doubt then protect yourself.
I'm with Mike on this. They didn't make bumper stickers Sh*t Happens for no reason.... sometimes things just happen you have no control over. You're protection is that clause. Leave it in. The builder accepted the contract that way, he's stuck with it. By the way... isn't your Realtor® supposed to be 'pleasing' you, not the builder?
We are thinking our realtor is trying to please the builder in order to get his future listings. His realtor hasn't stepped up much so my realtor has been the mediator between us and the builder.
Also, would it make any sense to remove just one part of tha clause. I think she mentioned taking the sale portion out and leaving the settlement. Or vice versa?
Your Realtor® is *supposed* to be between you and the builder regardless of the builder's situation with their own representation. And it's nice for her that she would like his future listings BUT her first obligation is to YOU. If she's finding herself in a conflict of interest then she should either hand the builder off to someone else in her office or hand you off. If I were you, I would tell her to KNOCK IT OFF. She is there to protect YOU and your interests, not the builders. The contract is already signed, the language is already in there, it protects you. There is no reason I can think of to mess with it. What if you remove part of it, and then for some reason, god forbid, something happens with your present sale.... then what? You have to fight to put it back in? I don't know how the clause is worded and you don't seem clear on what exactly she's trying to remove but you should be very careful.
Out here we do remove the sale portion and just make the offer then contingent on the successful close of escrow (settlement). Buyers have been laid off a week before closing. No job means no loan. It happens. I can't imagine telling a buyer to remove the close contingency on their home. The risk is too great.
You can rephrase the contingency to reflect that you have an offer, but you have to keep the contingency clause on the successful close of that sale.
As other have said, there's no way I would remove the contingency from the contract... The realtor is working extra hard to please both sides to try and get the deal done so they can get paid, but his/her original obligation was to represent you, not you and the builder.
I could write a book on all the items that could possibly go wrong with a real estate transaction to prevent it from closing as many others in here could as well. Keep your contract as is.
Out here we do remove the sale portion and just make the offer then contingent on the successful close of escrow (settlement).
I can't imagine telling a buyer to remove the close contingency on their home. The risk is too great.
Same here. Sounds like this agent is not acting in the best interests of the OP.
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