Buyer Remorse - HELP!! (sales, loan, attorneys) - Raleigh, Durham, Chapel Hill, Cary - North Carolina (NC) -The Triangle Area - City-Data Forum

apexguy · 07-30-2008, 08:27 AM

My agent gave me some devastating news today that the buyers of our home want to terminate the contract, for NO LEGITIMATE REASON! And of course we chose them over the other offer we had on our house 3 weeks ago...they were the stronger financial offer and easily qualified for the loan. The crazy thing is they want to just split the earnest money...what?!!!

All of the inspections went great...they just called my agent and said they don't want it anymore. I am waiting for a couple of attorneys to call me back, but wanted to know if any of you had any advice for me.

I have already experienced costs associated with the other house, including a home inspection, appraisal, etc. Not to mention the thought of re-listing our house again is just CRIPPLING!

Appreciate your thoughts!!

MikeJaquish · 07-30-2008, 08:29 AM

Quote:

Originally Posted by apexguy

My agent gave me some devastating news today that the buyers of our home want to terminate the contract, for NO LEGITIMATE REASON! And of course we chose them over the other offer we had on our house 3 weeks ago...they were the stronger financial offer and easily qualified for the loan. The crazy thing is they want to just split the earnest money...what?!!!

All of the inspections went great...they just called my agent and said they don't want it anymore. I am waiting for a couple of attorneys to call me back, but wanted to know if any of you had any advice for me.

I have already experienced costs associated with the other house, including a home inspection, appraisal, etc. Not to mention the thought of re-listing our house again is just CRIPPLING!

Appreciate your thoughts!!

Attorney. Yes.

Sorry to hear the bad news.

VickiR · 07-30-2008, 08:33 AM

Sorry to hear that...I know it makes you sick to your stomach.

This is why I don't think we get enough earnest money in our area...makes it too easy for buyers to just walk away.

Let me disclose that I am not an attorney and I have only had this happen ONCE to my clients in all the years that I've been an agent.

Read the contract...buyers have no legitimate reason to walk...earnest money is up for negotiation.

I agree with you...you should get the entire amount, based on what you are saying here.

However, if buyers don't agree...it becomes a negotiation.

An attorney is not a bad idea. Hopefully, your Realtor has a couple of attorneys that she uses often enough that they will give you some advice.

Vicki

apexguy · 07-30-2008, 08:38 AM

Im thinking that more than the earnest money should be up for damage. I have a new house that is supposed to close at the end of August...and I will need to relist at a price that is going to move this house quickly. Now the contract on the other home has a close contingency so I am protected. I would think the damage would be the difference in the contracted price and the new sales price, whatever that is.

Plus we have already started boxing up the place and is in no way show ready at the moment. My wife is about to lose it and so am I. Just devastated!

sneezecake · 07-30-2008, 08:39 AM

Question for everyone:

What is the point of earnest money if a seller doesn't automatically get to keep all of it if they back out for a reason this subjective?

ljd1010 · 07-30-2008, 08:42 AM

We cancelled the building of a new home in April - our decision and we lost ALL our earnest money. We knew this before cancelling. Listen to the realtors here, they'll guide you.

MikeJaquish · 07-30-2008, 08:44 AM

Quote:

Originally Posted by sneezecake

Question for everyone:

What is the point of earnest money if a seller doesn't automatically get to keep all of it if they back out for a reason this subjective?

I don't think there is a whole lot of "automatic" in the law.

Seller has a strong case as he presents it, but the courts may judge differently.
Unfortunately justice is often subjectively distributed.

If the parties cannot come to agreement on the disbursement of earnest money, it will likely be kicked to the Clerk of Courts.

Sayantsi · 07-30-2008, 08:54 AM

I certainly wouldn't negotiate on the earnest money - that's a fee paid to hold the house from other sellers, and you had other offers - they may not want the house anymore, but they still paid to have you hold it for them until they came to that decision - tough luck for the buyer imo.

NCBoyMommy · 07-30-2008, 08:55 AM

This happened to us 5 years ago when we moved here from SC. In our case the buyers walked and wanted to take 100% of their earnest money. In the end it was better for us to give it to them because 1. Attorney fees were more than the earnest money and 2. we couldn't realist our house until the matter was resolved.

Good luck. I hope that you can work it out.

Waterboy526 · 07-30-2008, 08:56 AM

OMG this would make my blood boil. I think you should get to keep all of the earnest money. Either way you'll be in worse shape even if you get the money. Here's hoping everything works out well for you and you'll get another buyer quickly. Any chance that the first buyer that put an offer in would still be looking for a place and be interested? You could make them a slightly better offer, and/or give them the earnest money that you received from the people that backed out. Just a thought.