[bayview6]

Originally Posted by Rubyww

Since we really like the place, we were briefly contemplating of rescinding the cancellation and ask for an extension. However, there is another problem that the house is now rented and they said they want to handle the tenant outside escrow. First, the condition of the house can be of question now it is rented. Second, even if I go through with the deal, I assume that I need to give the tenant's notice in order to get the house. Third, is it normal to handle the tenant outside escrow?

Come on, man, that isn't the only house for sale in Las Vegas.

[olecapt]

Nahhh..

You need an agreement in hand with the tenant. Ideally you need the tenant out. Failing that you need an agreement to vacate on date certain.

I would personally recommend that you get very confident that the tenant will behave...erither gone or you talk to them and are convinced they will do what they say.

Otherwise walk.

Tenants are messy. You may be able to beat a lease as you are an owner occupant. But it still might take 6 months and things could get broken.

don't go there.

Get a new agent. Too much excitement.

[Scott456]

A house is only a place to sleep and sh*t.
There is no need to get so emotionally attached to a house.

[WestieJeff]

+1 to olecapt. Tred lightly with a tenant in place.

It is my understanding by default you inherit the existing lease when you purchase.

I would only accept an agreement directly with the tenant and personally only with some incentive for the tenant that I felt like it would be worth it to them to leave early.

If the tenant decides to stay, you have to evict, and this would definitely be a non-standard eviction and be real "fun" and I expect the burden would be on you.

If you really like the house, I'd pay the tenant two months cash for keys at close of escrow to get them out, assuming they are interested in that. Otherwise, time to walk.

[Rubyww]

Yah, the tenant thing can get messy so we are not going to rescind our cancellation. The cancellation was sent as an addendum to the seller's agent on Tuesday. It says "Buyers are unable to accept the Terms and Conditions of the Short Sale Approval dated September 1, 2011. Buyers and Sellers agree to cancel the escrow and refund all Earnest money to the Buyer." Does our agent word this correctly? We received the short sale approval letter on September 9, 2011 even though it is dated September 1, 2011. We cancelled well within the due diligence period. However, the wording in the addendum to cancel sounds as if we acknowledged the September 1 date as the due diligence start date, which someone might interpret that our cancellation is after the due diligence period. In that case, they might refuse to return the EMD.

This might be the normal wording but I am becoming a skeptic now. I just don't want to get stuck due to the some incorrect wording/interpretation. My agent said we need to wait for the sellers to concur and sign the addendum. Then it will be forwarded to the escrow. What is the normal allowable time for the seller to sign the addendum? Is the wording in the cancellation correct and what else do I need to follow up?

[ScoopLV]

Y'know, there are plenty of deals out there that AREN'T short sales.

[Scott456]

Here is my question:
In a short sale situation, after the bank approves the short sale and accepts your offer price, can you still walk away withouth a home inspection within the due deligence period (the home inspection contingency is written in the contract). What exactly does "due diligence" mean?

[Rubyww]

I don't know the answer. However, this is what my Purchase Contracts says:

1) Under para 12 buyer's diligence: it says "Buyer shall have 10 calendar days from acceptance to complete buyer's due diligence. Buyer shall ensure that all inspections are initiated in a timely manner as to complete the due diligence in the time outlined herein. During this period, Buyer shall have the exclusive right at Buyer's discretion to cancel this Agreement. In the event of such cancellation, unless otherwise agreed herein, the EMD will be refunded to Buyer. If Buyer provides Seller with notice of objections, the due diligence period will be extended by the same number of calendar days that it takes Seller to respond in writing to Buyer's objections. If buyer fails to cancel this Agreement within the Due Diligence period (as it may be extended), buyer will be deemed to have waived the right to cancel under this section."

2)Under short sale addendum to purchase agreement para 4: it says " the time periods specified in the Purchase Agreement for due diligence starts (1) calendar after the parties’ mutual written approval of the Lender Approval. "

The first paragraphs says that the buyer shall have exclusive right to cancel the purchase agreement within due diligence period. It doesn't say that it needs a home inspection. The 2nd paragraph says that the due diligence starts 1 day after the bank approval. Combing these two paragraphs means the buyer can cancel after the bank approval without an inspection as long as within the due diligence period. I don't know for sure but that is the way that these paragraphs can be interpreted. Of course, it also gets confusing that the 2nd paragraphs states the due diligence periods starts after the parties (I assume it is the buyer and the seller) both approved the lender's approval. Therefore, if the buyers don't agree to the bank's terms, the due diligence period never starts and the buyers should be able to cancel.