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Question:
We have a contract on the house with a closing date in two weeks (we are Buyers). We need to terminate the contract for many reasons.
When we told that to our realtor, she got mad and threatened us to sue us for that 3% that she was going to get.
we did sign the agreement with her in december for 3% of the purchase price.
The sellers' agent was going to split 6% with her, like it's normally done.
Now, since by terminating the contract we are in Default, she said we were responsible for paying her those 3%.
Plus that, we put $3,600 down as an earnest money. From what we understand we are going to lose that.
Since the realtor turned her back on us we asked her broker to help us. But, unfortunately, they both are related to each other(the same family).
Now we feel pushed to our limits by the Broker trying to "help" and resolve all issues with the sellers. But we don't want the house anymore, We just want to get out of this mess and forget about it.
What are our true legal obligations? If they keep our earnest money (even if we don't feel they should, because the sellers are just being really nasty), but whatever at this point. If they keep the earnest money, what else can they go after?
We called the lawyer, but he asks for so much money just to look at our documents....
What is the worst case scenario if we go ahead and terminate the contract for "no reason" 2 weeks before the closing date?
Thank you for your help!!!!
That's a tough spot to be in and hopefully a knowledgable real estate pro will see your post and lend some advice. I'm no expert in your area but I do know that there are plenty of advocacy groups in the US and Texas who will be able to guide you. The key is to act quickly. Check the Texas Dept of Real Estate website for help in understanding your rights. Also I Googled: How do I cancel a purchase contract for a home in Texas and found several promising articles. Best of luck.
Question:
We have a contract on the house with a closing date in two weeks (we are Buyers). We need to terminate the contract for many reasons.
When we told that to our realtor, she got mad and threatened us to sue us for that 3% that she was going to get.
we did sign the agreement with her in december for 3% of the purchase price.
The sellers' agent was going to split 6% with her, like it's normally done.
Now, since by terminating the contract we are in Default, she said we were responsible for paying her those 3%.
Plus that, we put $3,600 down as an earnest money. From what we understand we are going to lose that.
Since the realtor turned her back on us we asked her broker to help us. But, unfortunately, they both are related to each other(the same family).
Now we feel pushed to our limits by the Broker trying to "help" and resolve all issues with the sellers. But we don't want the house anymore, We just want to get out of this mess and forget about it.
What are our true legal obligations? If they keep our earnest money (even if we don't feel they should, because the sellers are just being really nasty), but whatever at this point. If they keep the earnest money, what else can they go after?
We called the lawyer, but he asks for so much money just to look at our documents....
What is the worst case scenario if we go ahead and terminate the contract for "no reason" 2 weeks before the closing date?
Thank you for your help!!!!
You really need to go see an attorney. Your losses can be much more than your earnest money to the seller. They may be able to go after damages which could be anything including the difference in price between what they sell for and what you had a contract, moving fees and a host of other things. Though I don't know enough about Texas law to give you much more advice.
Shouldn't cheap out on the attorney when potentially 10's of thousands of dollars are on the line...
As to the realtor they are the least of your concerns. They probably won't sue you. Brokers are always afraid of you picketing their office with a sign that says "so and so sues clients" or "be careful if you go with x, so and so might sue if you don't buy".
As far as the agents commission it depends on the agreement you signed with the agent. Our company would not pursue you under normal circumstances. Your agent works in your best interest and their commission is secondary. If it's in your best interest to terminate your contract on the house, that is what they should do as your agent.
Honestly, I think the agent is just pressuring you to move forward with the purchase so they will get paid. If terminating is what you must do, then do it and if the agent comes looking for their money you may need an attorney.
Our contracts have about 2-3 outs for a buyer. If you are past all the deadlines, financing contengecies, etc then you can either lose your earnest money or be sued for specific performance. Most sellers will not sue because they can't sell their home with it being tied up in a lawsuit. Most will claim your earnest money and have a right to it along with others who may have do work for you and incurred expenses.
Your agent needs to represent & work for you. You can threaten to file a complaint with the TX Real Estate Commission if they don't. No agent wants to deal with a complaint with TREC since we could lose our license.
It may be time for you to play hardball & push back with a few threats of your own.
Keep in mind I'm not an attorney and have not read your agreement or contract.
You really need to go see an attorney. Your losses can be much more than your earnest money to the seller....
Most contracts specify that if the seller takes the earnest money, that is their sole right for damages. Of course, the OP should read their contract or consult with an attorney to understand what is allowed in this situation.
If you have an agreement with the buyer agent, which you likely due, you're probably responsible for that commission. That being said, you'll find VERY few Realtors that'll actually sue for that. We lose deals sometimes. If we treat our client right, we know we'll get referrals from them and they'll buy a house with us when it's time. If you've got a Realtor threatening to sue (there are always more sides to the story here on CD).
For the contract, you'll probably lose the earnest money and they CAN sue for specific performance, though I've rarely seen that.
You need to terminate for many reasons? Nice vague statement. You come looking for help and don't tell us (the pros not me) the entire story? If that's the case then cowboy up and get a lawyer. Maybe he can help you.
Location: When you take flak it means you are on target
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I don't know Texas law, but if you signed back in Dec any inspection periods must be over. Unless your sale was contingent on financing or sale of another home I don't see any way to not lose your deposit. That is what the deposit is for. The seller is going to be damaged. The property off the market for two months, possible fall in prices, etc.
You need to read your buyers agency agreement and see what it says. If you can't understand it you need to get an attorney.
I suggest takign some real estate classes before buying real estate anywhere. It will help avoud these legal issues.
Most contracts specify that if the seller takes the earnest money, that is their sole right for damages. Of course, the OP should read their contract or consult with an attorney to understand what is allowed in this situation.
Yes but usually there is another box you can check.....
Sold our house. Closed about 2 weeks ago. Our selling agent/ owner /broker refuses to answer calls, messages, emails or even certified letters. I have 3 weeks to move out on a leaseback. I have asked for copies of anything I signed with our selling agent because some of the documents were on docusign, electronic signature and only available for short periods of time. Now I can not view the docusign, our agent refuses to acknowledge us or supply us copies of the documents that were signed so how can we move on and purchase another home? . All we want is for her to sign a release so we can move forward, you should also know we have put offers in on other properties with her lack of negotiations and inability to fill out contracts correctly the first time cost us precious time. How can we purchase a home and ensure she is out of the deal entirely? Estimate on our take from the sale of our home was incorrect from the get go. Not allowed to see closing docs until at the closing table? That cost us $6,500.00 at the closing table. So now our options are:
1. Find a rental and put our belongings into storage more expenses for us
2. Storage and an extended stay hotel more expenses for us
3. See a lawyer more expenses for us she’s a lawyer so not going to cost her a dime
4. HAR.COM. Not helpful at all turns out this is only useful for realtors. The ratings system they use is determined by the realtor’s invitation given to clients they want feedback from. Any consumer complaints will only cost the consumer money and time they do not have.
We do not have any consumer protections in place that I have found so far. So unless you can afford a lawyer the only advice I have is stay away from realtors at all costs. If your only advice seems to be you need to hire a lawyer then that is what you should have done instead of signing an agreement with any realtor, owner, or broker. FYI, when a realtor begins by filling in a contract with where you will close and which title company to use that is abuse of consumers from what I have learned. They get kickbacks from every Title Company, appraiser and inspector they send you to as a buyer or seller. Buyers and Sellers beware!!!! If the Texas Attorney General’s Office is listening out there it is way past time for a real investigation into all aspects of real estate in Texas. The home buyer or seller (especially the sellers) really gets taken to the cleaners on title company fees (yet they hold no responsibility in any inaccuracies) for that they get a hefty sum from the buyer and seller. The seller gets slammed 6% of the price they are selling their home for so the buyer and seller agent can afford to live in and vacation in luxury. Anyone out there see any problems with this system? Buying and selling agents driving around in luxury cars and SUV’s while the rest of us poor suckers are trying to make the ten year old cars we drive last longer. This listing agent has not invested in us buying a home since we had to drive, pay tolls and follow them around in our own car. How exactly are they allowed to write off the cost of their cars on FEDERAL INCOME TAXES?
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