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Some of you may be familiar with my recent story on buying in a hot real estate market (Denver). I recently walked away from a sale after inspection highlighted some very expensive repairs and updates that the seller would not accommodate us on. So instead of locking myself into a property that we would need upwards of $20k in repairs in over the next few years, I walked away from it.
The seller of the property was trying to strong arm us during the entire contract process by demanding expedited closing and creating very demanding deadlines for us. We tried to accommodate her in every way we could, because we liked the house from what we could see. One way in which she tried to strong arm us was by setting the inspection objection deadline a few days after we went under contract. She literally gave me just a few days to schedule an inspection of the home and present any objections I had, which is hard enough in this tight market where many inspection companies and specialists are back logged. I brought this up to my agent, and he said it was no problem and that he'd send her a request for extension. Well, I was informed this past weekend by my agent that the seller never signed off on the extension. At any rate, he again assured me that it was not a problem, that we'd be able to walk away without any issues.
Well, yesterday I signed off on a 'Notice to terminate' and the 'Earnest Money Release' for the previous contract. As of this morning, we have not heard anything from the seller, nor has she signed the forms we sent her. My agent told me she has three days to sign off on it, so the deadline would technically be tomorrow for her to sign off on both. My agent has continued to reassure me that we should get the money back, whether it is from her or if he needs to cut me a check. But it worries me because they have only been verbal reassurances from him.
Obviously, since I'm new-ish to buying (this is only my 2nd time), I'm paranoid and nervous about worst case scenarios. I'm worried that I'm going to be out $3500 just for doing my due diligence on a new home purchase. I'm particularly more worried because I'm about to cough up another $3000 for earnest money on this other house that we are under contract on, and it's non-refundable because the seller wants to discourage skiddish buyers since they are moving out of state and need to close this deal. Is there any reassuring testimonials that you can share from your own experience?
This local market has made me extremely stressed and mentally drained, because I feel like I'm being dragged around and forced to accommodate so many people just to have the privilege to buy a home. I feel like as a buyer, we have absolutely no rights, protections, or leverage in this market. It's almost gotten to the point where it doesn't even seem worth it to me.
Last edited by Left-handed; 08-01-2017 at 01:58 PM..
Well, yesterday I signed off on a 'Notice to terminate' and the 'Earnest Money Release' for the previous contract.
As of this morning, we have not heard anything from the seller, nor has she signed the forms we sent her.
My agent told me...
It's at this sort of point in the home buying process that all the westerners gleeful pronouncements
that attorneys aren't needed by buyers gets the hard right cross right on their glass jaw.
It'll probably all work out as it should at the last possible legal second...
but wouldn't you feel better if you already had an attorney involved in things?
---
Inexperienced buyers can truly benefit from having an agent.
But ALL buyers benefit from having a good RE specializing attorney on board from the outset.
(and no -- having one doesn't cost any more than what working through title companies cost)
The earnest money should be in the possession of the escrow agent at the title company. This is WHY an objective third party holds the money until everyone is happy.
I know it's discouraging, and stressful, and sometimes takes longer than we'd like, but let your agent work on it. If your contract is done right, you'll get it back in time.
I feel like as a buyer, we have absolutely no rights, protections, or leverage in this market. It's almost gotten to the point where it doesn't even seem worth it to me.
It's interesting that you feel this way because in Texas, it's the opposite. Buyers hold the majority of the cards and the sellers have absolutely no "outs" of a contract, even in a Seller's market.
Seller signs only the EM release. The terminating party only signs the Notice to Terminate. ~Sit tight, you will get the EM back in 120 days from whoever the em holder is.
But ALL buyers benefit from having a good RE specializing attorney on board from the outset.
(and no -- having one doesn't cost any more than what working through title companies cost)
Sure they do in Colorado. Our state promulgated forms are written in plain English. Your contract would never be approved, in this market if you had to wait for attorney review. A Buyer would pay out of pocket for the attorney, the lender policy & half the closing fee for title.
There are real estate attorneys in Colorado, most specialize in Commercial Real Estate. I have worked for two, and had two others involved in transactions from the beginning in 28 years.
I never put more than $1000 down. If the seller wont agree, I tell them I will walk. Never had anyone turn me down. But I realize every market is different.
It's at this sort of point in the home buying process that all the westerners gleeful pronouncements
that attorneys aren't needed by buyers gets the hard right cross right on their glass jaw.
It'll probably all work out as it should at the last possible legal second...
but wouldn't you feel better if you already had an attorney involved in things?
---
Inexperienced buyers can truly benefit from having an agent.
But ALL buyers benefit from having a good RE specializing attorney on board from the outset.
(and no -- having one doesn't cost any more than what working through title companies cost)
Here in MA we use attorneys in almost every single RE transaction. We don't have title companies. So, I'm quite comfortable with the idea of working with a RE attorney.
This being said . . . I would love to know what difference you think an attorney would have made for the OP in this situation.
Here in MA we use attorneys in almost every single RE transaction. We don't have title companies. So, I'm quite comfortable with the idea of working with a RE attorney.
This being said . . . I would love to know what difference you think an attorney would have made for the OP in this situation.
We use attorneys for closing the purchase, as only attorneys can do title work in NC, but our NCAR Standard Offer to Purchase is pretty clear on handling of EMD.
As long as deadlines are met, "time being of the essence," the buyers agent doing their job properly can secure the EMD refund for the client.
Of course, the OP is in California, and a different world from NC, so it isn't reasonable to try to weigh in on the contract from here.
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