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Classic thread. Come asking for advice that shouldn't be asked in the first place. Then get mad when some people disagree with you. Only listen to posts that agree with your opinion. Got to love the interwebs.
MAN, now you're gonna make me have to read the whole thread to see what all the hubbub is about.
I think when I'm done, I'll have formed an opinion that whomever was responsible for writing the purchase contract didn't do a very thorough job
manderly6: I am not mad and I do appreciate all your comments if they are presented in a respectful manner, but when one of the member says something like you can burn your house down or something like this, I couldn't digest that.
I still have doubts if I have interpreted the agreement well, and most of you guys (those who have replied to my post in public) have made good points but some other comments were made incorrectly from my point of view, but I have been trying to explain the facts, my points, the timelines, etc. For those of you who have sent me private messages , I do appreciate your support. I do agree that moving forward with legal action doesn't worth it, and this realization has helped me after reading all of you. Thanks for that.
However, My original question, and you can review my original post, was that how a buyer can walk out from an agreement after the Inspection Contingency Period ends and without having any consequences. All you guys say that same thing, this is valid, that the buyer has the right to terminate the agreement, etc etc but my point is the consequences that he didn't get at all by terminating the agreement even though it was written to consider this case. Even if you go to rent a tool from Home Depot and made a deposit and then you break the agreement in any way, you can lose the deposit, or part of it. I am trying to get my point out and it looks like it has irritated some of you guys and have became defensive, at least this is my impression.
riaelise: Members here have asked me questions thru the thread. So, I have been trying to answers them, but they have presented facts that don't look clear to me. I have explained my point many times to see if I get it out right. Sorry if you see a bad discussion, but my original goal was to get a feedback of something that I didn't see right. I contacted an attorney today and he said that I have a case. But, based on the feedbacks from you guys and reading here and there, etc etc, and after long talks with my Realtor and others, I signed the buyer's termination letter today. I believe I would loose that case even thought I have solid bases.
HOwever, My original question, and you can review my original post, was that how a buyer can walk out from an agreement after the Inspection Contingency Period ends without having any consequences. All you guys say that this is valid, that the buyer has the right to terminate the agreement, etc etc but my point is the consequences that he didn't get at all.
You are the one that has to force the consequences. That is how it works. Most sellers choose to step back because the emotional stress of enforcing the consequences isn't worth the earnest money to them. So it is sellers that allow it to happen.
I will also say that having an agent at your back to help you fight for it makes it easier. You really need to talk to your agent before you put the house back on the market.
Silverfall: The house was put back on the market by my agent today with not questions. I didn't have emotional stress since I didn't enforce any consequences nor the case reached the court. I don't think I have forced the consequences to the buyer. He is happy. He didn't buy the house and walked out with all his $10,000 from the deposit.
Silverfall: The house was put back on the market by my agent today with not questions. I didn't have emotional stress since I didn't enforce any consequences nor the case reached the court. I don't think I have forced the consequences to the buyer. He is happy. He didn't buy the house and walked out with all his $10,000 from the deposit.
I saw that. I was just responding to your initial question you reposted about how a buyer can do it.
I still think you really need to talk to your agent. Hanging on to time sensitive documents and not focusing on deadlines is just unacceptable, IMO.
oldtrader, you are wrong too, and you know why? because you don't understand what happened you cannot talk as if you knew all the details of this case.. Please read the whole thread. There was not such thing as a separated or new offer at all. There was a "Proposal" that the buyer and I both agreed and signed under the original agreement. Read the lines highlighted below or read the whole to understand before making wrong comments.
The word proposal means the same as offer.
Quote:
Part B: Except as stated in Paragraph 13(C), if the result of any Inspection elected in Paragraph 12(C) is unsatisfactory to Buyer, Buyer will, within the stated Contingency Period:
1. Accept the Property with the information stated in the Report(s) and agree to the RELEASE in Paragraph 25 of this Agreement, OR
2. Terminate the Agreement by written notice to Seller, with all deposit monies returned to Buyer according to the terms of the Paragraph 23 of this Agreement, OR
3. Present the Report(s) to Seller with a Written Corrective Proposal ("Proposal") listing corrections and/or credits desired by Buyer.
At no time did the buyer, agree to #1, which would have kept the contract as written in force.
As he did not choose to do so, the contract was no longer in effect, and another action had to happen to put it back in force. He had 2 other options.
The buyer chose #3. He made a proposal/offer that if you paid to solve the problems found in the inspection report, he would go through with the contract. There was a 5 day time frame for you to accept the proposal/offer.
The buyer withdrew the offer/proposal prior to the end of the 5 day period, and before you had signed the proposal, and took option #2 which was to terminate the contract. Until the first offer/proposal is signed by the seller, this is a buyers legal right.
You signed after the buyer withdrew the offer/proposal. There was in essence nothing for you to sign, as the proposal had been cancelled. Without the proposal the other contract is null and void. You don't have a contract. To keep it in effect as is, you would have to had the buyer sign off on option #1. He has never done so.
The contract required one of three options to be selected, to keep it in effect. The buyer did not sign #1, so it means nothing. The buyer did sign #3, but cancelled this offer before you signed it. The buyer then chose #2 and cancelled the entire contact.
All actions taken, within the terms of the original contract.
A great article from Forbes Magazine explains offers and acceptance of contracts, and when they may be withdrawn.
As it explains until an offer/proposal is accepted by the other party (you), it may be revoked by the first party making the offer/proposal null and void at that point.
That is exactly what your buyer did. He lived up to his legal rights to do so. As the contract had to have one of three things done to keep it a valid contract, your buyer then chose the one that cancelled the contract and as the contract says the money is to be returned to him.
You did not sign the proposal, till a day after he had already cancelled his offer/proposal, and cancelled the sale.
If you had not taken so long to sign the proposal/offer, and signed it before he cancelled it, the contract would have been solid, and the buyer would close or lose his $10,000. You took too long, and he cancelled first.
We had the same thing happen to us in PA. All money was refunded to the buyer. Of course we were furious as we had multiple offers and accepted theirs.
PA doesn't use real estate attorney's and the seller and buyer rely heavily on the agents. Not fun for either party when something like this happens.
Since when? You can ALWAYS hire an attorney.
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".
Why did you stop showing the house? You had no right to sign another contract, but was there a clause that you can not show? Just to hedge yourself if something happens?
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 !!!
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 !!!
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
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