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I haven't signed the termination letter, but my agent is now saying that If I don't do that, the buyer may sue me. Obviously my agent is trying to intimate me. She says that she hasn't talked to the buyer's agent about this yet.
I am not sure if this worth it for sure, but I am still thinking about running numbers. I know attorney's rates are in the range of $250-$350. With this in mind, I come up with a figure of $3,000-$5,000 for legal stuff. The deposit is $10,000. So, If I win I can have $5,000 or more at the end as liquidated damages, which will allow me to pay the mortgage and other fees, while I will be waiting for the next buyer. ..
all this are based on assumptions, etc.. which I am not sure about them..
you may be right, but during this time frame of waiting I had to pay my mortgage, association as the house has been vacant for a few months. I live in another state, so I don't live in the property. If I can spend said $5,000 in legal stuff (which I don't know if this figure would be realistic), I will have $5,000 as liquidated damages.
This is what I think. I don't know if this makes sense.
No it does not make sense. If you refuse to return the deposit or wait it out, your house is now involved in a legal action. You can't sell it until that legal action is resolved because you will not be able to provide clear title and title insurance on a property involved in litigation. Move on.
Whether you had received this offer or not you would have still been paying those bills unless you missed a buyer that wanted to close in a week with all cash.
The house was not shown in 16 days, during this process, and again I was agreed about doing all repairs. The buyer just submited the termination letter without any logic reason. I could have lost another potential buyers. This is why I am running my numbers to see if this works for me in case I win..
Honestly, just let it go and move on to the next buyer. It's not worth the headache or hassle for what is likely not a whole lot of money. The marketing time you lost is minimal.
Your bigger problem is an agent that doesn't send you documents immediately or the next morning if they are received late in the day.
Since it is not in the section you provided, elsewhere in the contract is probably a sentence that indicates if the contract uses calendar days or business days.
coincidentally Feb 4th is the 10th business day from the contract signing.
I really don't understand people like the OP. essentially the buyer complied with their end of the deal by giving an inspection list which was ignored until the end of the contingency period, then this seller has the gall to try and keep a deposit on this arguing about a day or two on a cancellation which most likely is within the bounds of the contract.
He wouldn't know b/c he didn't have a lawyer look over the contract, he had an internet forum.
On top of that, he seems to think the 2-3 days extra, which may not be extra to begin with, are worth something close to $10K.
Give the buyers back their deposit. ax your real estate agent for the lack of responsiveness and get on with the sale process.
The potential buyers can't help that you have a mortgage and HOA fee, guess what? you own the house, that is your responsibility not theirs.
If I were the buyers if you responded like you are now, I would definitely file suit against you, you may hold the $10K, which most likely will be returned to them, but they can hold your house hostage until this is resolved.
Anything delivered to your agent is deemed as delivered to you, regardless if your agent is taking days to forward things to you - so subsequent time of essence rights you or the buyer may then have at this point in your contract are based from such delivery to (your) agent and not when you got the paper. So it seems your agent may be dropping the ball with important dates and deadlines and time of essence criteria so the buyer is executing their rights and protecting their money.
With regards to your specific transaction, you should consult an attorney as other legalities may come into consideration. Overall, it may be worth simply letting the current buyer go and return the money because in practicality if it becomes a dispute to go to court to pursue the liquidated damages money; it will entail you removing your property from the market (not allow showings nor entertain other offers) until matters are resolved; and that can take months. Besides, such action may create a lis pendens on title too which will also have to be resolved.
"On January 30 , my agent received the buyer's reply-to-inspection letter, which was forwarded to me three days later on February 1."
So, the 5 days response began on the 30th because that is when she received it. So since the buyer didn't hear anything by sequence of events, implication that you won't agree to their request, and still w/in "the time stated in Paragraph 13(B)(3a)", they are pulling out by evidence of termination letter because Seller failed to choose either option in writing - On or before the 10 day period, buyer will do one of two things terminate then and there or send in the reply-to-inspection letter, which they did on the 30th, so new timeframe began then. By the looks of it, unfortunately you were a day late to respond; I have no idea why your agent let deadlines slip by as they did.
I would also be inclined to fire your agent, or should you wish, the very least inform their managing broker of what has been going on have them take over. You may want to explore if things are able to be salvaged and resurrected with this buyer and transaction, if not just let them go and move on.
thanks Tarkak9.. Yes, my agent dropped the ball here. I need to think all over again.
Chrisk327: The 10th day was Feb 1, the buyer's termination letter was submitted and received on Feb 4. The inspection list was not ignored. I agreed about the repairs, but the buyer just walked away. I didn't have this internet forum to review my agreement. I started to see this forum when my buyer did the termination after the contingency period.
thanks Tarkak9.. Yes, my agent dropped the ball here. I need to think all over again.
Chrisk327: The 10th day was Feb 1, the buyer's termination letter was submitted and received on Feb 4. The inspection list was not ignored. I agreed about the repairs, but the buyer just walked away. I didn't have this internet forum to review my agreement. I started to see this forum when my buyer did the termination after the contingency period.
Have you considered that your agent did not send your agreement on repairs to the buyers on time? Given the history, it's very feasible. Have you also considered that the agent sat on the termination letter for a day or two? Again--given the history here.
I haven't signed the termination letter, but my agent is now saying that If I don't do that, the buyer may sue me. Obviously my agent is trying to intimate me.
There is no intimidation. They will definitely sue you over $10k. She is simply stating a fact. Buyer was dumb to put down so much, now it cant go to small claims court.
Since you agreed to the 10 day inspection period, I doubt a judge would give you any more than a couple of days damages, if any. I say "if any" because you continued the dialog by saying you would repair stuff after the time period vs requesting a termination.
I would expect a good lawyer to start filing claims against your deed and registering it with the state putting a cloud on your title, making it impossible for a clear title, which may make it impossible to sell until settled.
Looking at it from a math perspective, I wouldn't think its worth it to fight for a couple of days worth of damages.
Last edited by 399083453; 02-11-2014 at 01:02 PM..
Yeah, since I don't have a copy of the contract, it could be calendar days or business days. the contracts I've come across have had both. Despite this, I think you going after their money (at least in a residential transaction) is barking up the wrong tree. The most I've seen a seller retain is 100.00, which is purely a "just because" fee rather than keeping the entire amount. This, of course, is spelled out in the contract.
Again, I think holding on to their money "just because" isn't the best thing to do. And the others are right, your agent dropped balls big time. If you want to go after anyone, go after your agent who failed to send to you important documents. It's the not the buyer you should be irritated with in this scenario.
Have you considered that your agent did not send your agreement on repairs to the buyers on time? Given the history, it's very feasible. Have you also considered that the agent sat on the termination letter for a day or two? Again--given the history here.
That's what I'm wondering too. If the agent received it on the first, at least out here, that is the same as the seller receiving it on the first which would comply with the 10 days. Clauses work together in contracts so you need to read what your contract says about mutual acceptance and when the clock starts ticking for timeframes. Out here, our day 1 is the next business day after the contract has been mutually accepted.
I'm also stunned that it took 3 days to get you things. Especially since it fell on the day the contingency ended.
Personally, I think you have an uphill battle getting the EM, but I do encourage you to chat with your agent about their delays in getting you documents. It might not be the buyer being out of contract, but your agent failing in their fiduciary duties to you. Hiring a bad agent isn't reason to get the earnest money.
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