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I used a PA real estate attorney way back in 1987 buying my first house and it was new construction from a BUILDER!
That being said, I fired him at the closing table when he handed me the builder's mortgage company doc for 10% over 30 years and it was supposed to be 8% for 15 years - and said "OK, sign".
Should have said they are not required. I found it odd when buying and selling.
this whole NC due diligence hogwash intrigues me, and has come up a couple times prior on here.
in my area, its quite very simple.
send offer. accept offer. deliver EMD to whomever is agreed to hold it.
handle inspection during alloted timeframe agreed upon. even if NOTHING is found, buyer can walk with NO loss of EMD (assuming specific language is not placed into contract speaking otherwise)
buyer EMD is protected through appraisal deadline, financing deadline (that also automatically continues to extend past set date UNLESS notice is given by seller. buyer EMD is protected by Termite inspection, is notated.
so much protection, very hard to lose an EMD from a buyers perspective IMO.
it boggles my mind that other parts of the country don't partner with other areas to help fine tune their contracts..
/off soapbox. now off to figure out if im showing two homes tomorrow in 5+" of snow lol
But when is the date that the ERD would be lost by buyers..
From a sellers propective when it gets closer to closing there are costs involved
like storage depostits, lost time off market, rental or purchase depostits that make it expensive if buyers walk late in the game
But when is the date that the ERD would be lost by buyers..
From a sellers propective when it gets closer to closing there are costs involved
like storage depostits, lost time off market, rental or purchase depostits that make it expensive if buyers walk late in the game
my local contract, there is no definite date that the EMD is lost. not set in stone (like it sound like it might be in other areas contracts)
to put it briefly, the buyers EMD is safe ASSUMING they work through their inspections (in the timeframe agreed upon by both sides), receive financing within the contingency window set, receive an acceptable appraisal (approved by lender of course) within the contingency window, receive HOA/Condo docs, if applicable, and are given our alloted 72 hour window for review and acceptance, receive clear title etc, clear termite report.
I'm sure I'm missing a thing or two, but for the most part, all of those items, provided they are managed within the contingency windows stated (and agreed upon) within the contract, the buyer *should* have no risk of loss of EMD and/or risk of a judicial proceeding against them.
In my years doing this, I have NEVER forfeited an EMD from the buyers side, but that is because I make sure everyone in the transaction is cognizant of the contingency deadlines etc.
this whole NC due diligence hogwash intrigues me, and has come up a couple times prior on here.
in my area, its quite very simple.
send offer. accept offer. deliver EMD to whomever is agreed to hold it.
handle inspection during alloted timeframe agreed upon. even if NOTHING is found, buyer can walk with NO loss of EMD (assuming specific language is not placed into contract speaking otherwise)
buyer EMD is protected through appraisal deadline, financing deadline (that also automatically continues to extend past set date UNLESS notice is given by seller. buyer EMD is protected by Termite inspection, is notated.
so much protection, very hard to lose an EMD from a buyers perspective IMO.
it boggles my mind that other parts of the country don't partner with other areas to help fine tune their contracts..
/off soapbox. now off to figure out if im showing two homes tomorrow in 5+" of snow lol
Yep. I figure that the rest of the country will come to their senses and knock off North Carolina's system any day now.
Two dates. Due Diligence Period expiration and Settlement Date.
The simplicity of the contract is just truly superb.
Of course, it is all screwed up as soon as the Realtors get involved. A 6 page contract has to be 11 pages because people sleep through CE and never read the forms they are using. So TPTB put instructions to the consumer into the contract, figuring the consumer may understand the document better than the agent...
I wish I was being totally sarcastic, but, no.....
oldtrader: You are wrong for the second time. I didn't mean the buyer agreed to #1 and accepted the property during the Inspection Contingency Period. He was agreed to present the “proposal” for repairs (option #3). BTW, I checked with a Real Estate Attorney the term "Proposal" Vs. "New Offer" and that was NOT A NEW OFFER. A new offer implies for example a difference or change in price of the property. This was a conditional acceptance of the same offer. He says (as I have interpreted this) if under an agreement a “proposal”, which buyer and seller agreed and signed in the stated period, is presented to the seller, the buyer cannot reject it because he in fact made the proposal to the seller in written and seller was willing to do the repairs and pay for them. The buyer had the option to find all technicians to do the repairs to his satisfaction and seller can agree to pay that. Also, did I mention that the original agreement was stated to accept the property “as is”? After 5 days of ending the Inspection Contingency period, the buyer CANNOT terminate the agreement without suffering consequences. PERIOD. So, you are wrong here. Buyer cannot go back in time and select another option during a period of time that IS OVER. I still believe that your wrong interpretations of this agreement is because you havent seen it.Also it happens because I came to this forum with questions and the advices are twisted based on other agreements and cases. The agreements never say “you need to sign the proposal quickly”. It states a period of time to respond, period.
BusyMeAK: My agent removed the listings (rental and sale) from the market, and I though she were right. Obviously she made a mistake and so did I by assuming she were right.
kelly237: NC seems to be a better state for buying/selling houses. What you are saying is exactly what I have been trying to ask here in this forum. Buyer should not terminate an agreement without losing due diligence fee., and it looks to me that those paragraphs in the agreement I signed is to claim this right, but some members in this forum have insisted on saying that buyer was right in my case, which I haven't been able to digest it yet, but I am ok to be convinced of what these members are saying but only based on a good interpretation of this agreement and not based on experiences.
kww: I believe we as seller need protection in case when buyer changes his/her mind and walk away after all contingency periods are met. Some Members from this forum have said that if there was no damage, then buyer had the right to terminate the agreement without suffering any consequences. I don’t buy that. There is always a damage, tangible or not, and I had it very visible. The same thing should happen if seller terminates the agreement the day before closing. I don’t want to discuss if he cannot do or can do that, obviously the consensus from this forum is that any party can terminate the agreement at any time and after all contingency periods have met, but the consequences of that action is what I have been trying to discuss here and some members have said “no consequences”. It doesn’t make sense to me yet.
riaelise: Yes, agree. I need to get rid of my agent. I have been thinking about it.
capacho you can have (extra paperwork) the buyer sign a separate agreement with a deposit that they will forfeit it for pulling out, with specifics.
The buyers that pulled out on us (total freakout about buying a house) received all their money back. We of course were furious (as mentioned). Surprisingly they came back and said they made a mistake. We drew up an agreement that if they pulled out of the sale for ANY REASON we kept the deposit.
But when is the date that the ERD would be lost by buyers..
From a sellers propective when it gets closer to closing there are costs involved
like storage depostits, lost time off market, rental or purchase depostits that make it expensive if buyers walk late in the game
Lost time off market is really not a cost--the only cost associated with time on market is the accruing interest on any mortgage on the property, but that interest is accruing regardless of whether or not the property is sold.
Storing furnishings and making alternate living arrangements is always going to be an issue when one sells a home.
Quote:
Originally Posted by kelly237
NC has a new real estate contract that eliminates all these issues...
Due dilegence period is agreed to where buyer does all inspections & requests & and can terminate
with only a loss of Due diligence fee..
After that date at 5 pm, the termination would cause the buyer to lose the larger amount of earnest money...
It causes both parties to work very hard to come to agreement about repair request before that deadline..
I am buying right now and have found ac issues 3 days before DDiligence period ends..
If we don't agree by that day I will request extension to that period to work on solution or terminate contract..Neither of us want that to happen..
I have also sold under this new contract type and it motivates everyone to scramble to work out
solutions to the repair issues..
Also totally disagree that seller isn't out anything..Time is money !!!
While we all believe our time is valuable, a home seller's time is not paid for by a buyer. And the seller's agent should be the one spending the time to get the home sold, anyways.
buyer was willing to take the property if I agree to do the repairs. But then buyer changed his mind and sent me the termination breaking the agreement..
Maybe they found another house that they could move right into without having to worry about any repairs. It sucks but people do change their minds. Its your call but I would think this energy could be better spent getting your house back on the market ASAP and trying to find another buyer.
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