Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
My friend entered into a real estate sales contract to buy a house. The contract specified that the mortgage commitment needs to be delivered to seller by 5 pm of the 25th day. After that the seller has the option to void the contract, but the seller cannot void the contract if the buyer submits the commitment before the seller voids the contract even if its past the deadline. My friend's agent was able to get the mortgage commitment from the lender 1 day earlier than the deadline but forgot to e mail/ send it to the seller's agent. At 7 PM on the 25th day, the sellers wrote an e mail voiding the contract since they did not receive the commitment letter. Immediately after that the buyer's agent e mailed and sends in the commitment letter.
Does my friend stand a chance of saving the contract?
Clearly, it was the fault of the buyer's agent who forgot to deliver the commitment before the deadline. The seller is no longer interested in selling and insists that the contract is void.
From what you've described, it sounds like there is no longer a contract.
Suggest to your friend that they immediately dump their agent and contact the Listing agent directly. Maybe they'd entertain entering into a new contract.
Your friend should have been on top of the situation, too, but a complaint should be made to the agent's broker...and perhaps to the state. Why didn't your friend receive the mortgage commitment?
Friend's agent forwarded the e mail from the lender with the commitment within 5 minutes after the seller's e mail informing of voiding the contract. From the chain of e mails it seems his agent was in touch with the lender and the lender had sent the commitment one day before. Looks like the buyer (friend) relied on his agent to forward the commitment to the seller.
You don't just email when you are in error and trying to pull things back together.
You call the other side, apologize profusely, and do your very best to placate the agent and their client.
But.....
If the seller is that eager to kick your friend to the curb, one of a couple of things are likely:
1. The buyers agent and/or the buyer has been a complete ditz throughout the transaction.
2. Seller has a solid backup contract in hand, with a party who is ready, willing, and eager to go Primary.
The seller does not have any back up contract as per their agent. However, their agent did say that the seller was not interested in selling because he would have lost a lot of money in that deal and hence would want to rent the home instead to avoid losing so much. The seller was in need of money before when he went into the contract but does not need the money from the house for now.
The question here is, is there any legal recourse for the buyer?
The seller does not have any back up contract as per their agent. However, their agent did say that the seller was not interested in selling because he would have lost a lot of money in that deal and hence would want to rent the home instead to avoid losing so much. The seller was in need of money before when he went into the contract but does not need the money from the house for now.
The question here is, is there any legal recourse for the buyer?
There was a deadline. Buyer skipped on responsibility.
Buyer should talk to an attorney about legal recourse, but I think it seems slim, depending, of course, on the precise wording of the contract.
The seller does not have any back up contract as per their agent. However, their agent did say that the seller was not interested in selling because he would have lost a lot of money in that deal and hence would want to rent the home instead to avoid losing so much. The seller was in need of money before when he went into the contract but does not need the money from the house for now.
The question here is, is there any legal recourse for the buyer?
It doesn't sound like there would be any recourse against the Seller. They abided by the terms of the contract. When it comes to real estate contracts, attention to detail is crucial. Lesson learned (hopefully).
Agree with Jack and Mike and it's fairly simple - the buyer's agent missed the deadline laid clear in the contract so the seller is within their contractual rights to terminate the contract. From what you've stated and without seeing the full contract, I don't believe the buyers have any recourse and they need to move on. Buyer's agent absolutely blew it and clearly the buyers need to find a new agent.
The question here is, is there any legal recourse for the buyer?
Find the Legal Forum or a lawyer. Especially in the state where this occurred. In some states, your friend has an attorney handling the closing anyway; other states use title companies.
Because none of us can play telephone game with you for your friend when we don't even know the state and thus the very specific language of the contract. Have you seen the contract?
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
