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Welcome to life. It ain't fair, nice or pretty. Read the contract and you will see so many outs. I used to drag race and my friend's repair shop had a big sign, "In God I trust all others pay cash." If he did a repair your car did not leave until he had cash. He would take a check and go cash it then you could have your car. He could go down and put leans and stuff but he had be burned once too many times. I am not in NC but Offers are given and taken back. I would show the house while someone was looking at it. I am selling until it is sold. I have sold lots of things and I would never hold anything that was not paid for. She ain't yours until the ring is on the finger.
Sometimes I will see situations where a person really wants the house and is being aggressive they will shorten the DD period and add a little more skin in the game with a higher DD fee, but that's NOT the norm!
I'm not a lawyer but this is my understanding...If they make offers on multiple properties and only plan to purchase 1, that could be considered fraud unless the buyers disclosed to the seller up front that was what they were doing. Their agent should have known better and is walking shaky ground if this was known and not disclosed by the agent.
I am a lawyer, and really depends on what your contract states. The Texas contract allows cancellation for ANY reason within that due diligence period with no recourse other than the seller gets to keep the option fee.
A person can not commit fraud if the contract specifically allows them to do what they are doing. Each state may be different, but what the OP has said occurred to him occurs ALL the time here.
I had two properties last year in Houston in a very very hot neighborhood....I could get 5 contracts the first day, and still have 30 showings scheduled the next 2 days. I advised my sellers to modify the contract and the option period to raise the price of the option fee. I can't remember the exact language we used but essentially we requested a $2500 option fee, of which $2000 was refundable if an inspection yielded problems or issues related to the structure itself. such as issues with the foundation (limited to foundation, framing, roof) air conditioning, or plumbing which after having time to get bids the repairs would exceed $2000. The option was non refundable over cosmetic faults or repairs which would cost less than $2000.
We still had 8 contracts by the end of the second day that incorporated our clause....and, we were able to pick/choose the best contract, and it closed without a hitch.
I am a lawyer, and really depends on what your contract states. The Texas contract allows cancellation for ANY reason within that due diligence period with no recourse other than the seller gets to keep the option fee.
A person can not commit fraud if the contract specifically allows them to do what they are doing. Each state may be different, but what the OP has said occurred to him occurs ALL the time here.
I had two properties last year in Houston in a very very hot neighborhood....I could get 5 contracts the first day, and still have 30 showings scheduled the next 2 days. I advised my sellers to modify the contract and the option period to raise the price of the option fee. I can't remember the exact language we used but essentially we requested a $2500 option fee, of which $2000 was refundable if an inspection yielded problems or issues related to the structure itself. such as issues with the foundation (limited to foundation, framing, roof) air conditioning, or plumbing which after having time to get bids the repairs would exceed $2000. The option was non refundable over cosmetic faults or repairs which would cost less than $2000.
We still had 8 contracts by the end of the second day that incorporated our clause....and, we were able to pick/choose the best contract, and it closed without a hitch.
I have considered having a few addenda composed.
Recently, we had a buyer hold a listing for 10 days, and cancel the night before appraisal.
They just popped $500 to hold it while they thought about it.
I have one in Asheville coming up to close shortly and would like to ask the NC Realtors if the DD Fee is on the HUD?
The seller on my file requested my buyer bump up the DD to $500. Two DD checks were paid by cashier's check (which is a pain to document who paid for the check, fortunately we had a clean withdrawal of funds). The EMD went straight to the escrow company .
I have one in Asheville coming up to close shortly and would like to ask the NC Realtors if the DD Fee is on the HUD?
The seller on my file requested my buyer bump up the DD to $500. Two DD checks were paid by cashier's check (which is a pain to document who paid for the check, fortunately we had a clean withdrawal of funds). The EMD went straight to the escrow company .
Yes, DD Fees are credited to the buyer under "Amounts Paid by or in Behalf of Borrower."
Thanks, I was not familiar with DD, but was surprised the UW did not follow up with any degree of verification that an EMD would receive. Technically, if it's going to be on the HUD, the source must be verified. I suspect the UW was not familiar, either. (It's portfolio, so no harm no foul, I am sure title company will get it on the HUD).
Recently, we had a buyer hold a listing for 10 days, and cancel the night before appraisal. They just popped $500 to hold it while they thought about it.
That must make for some painful phone calls to your sellers. Here in AL, we have no DD period. Once the contract is ratified with all signatures, you've bought a house. A buyer can't even walk after inspection unless the house has "major defects." Obviously, you can forfeit your EMD and walk but there's not nearly as many outs here as in Northern VA where I last did real estate. Of course, AL is also the last remaining "buyer beware/non-disclosure" state remaining.
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