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I saw this on a blog:
"The buyer requests repairs the seller is unwilling to do. When home buyers get a home inspection, they'll often request that sellers make repairs based on that report, or issue a "repair credit" to cover those costs. The thing is, sellers can always refuse—a move that could "constructively cancel" the real estate contract. In essence, the seller forces the buyer's hand, since constructive cancellation requires the buyer to either back off on the requests or back out of the deal, says Brian J. Thompson, a CPA and attorney in Chicago."
I wondered about a couple details though. I am in a contract and I am the buyer. I have to give my inspection response in a few days. If I ask for price reduction can they effectively say "no - and by the way this contract is now legally void and we are done". ??
I saw this on a blog:
"The buyer requests repairs the seller is unwilling to do. When home buyers get a home inspection, they'll often request that sellers make repairs based on that report, or issue a "repair credit" to cover those costs. The thing is, sellers can always refuse—a move that could "constructively cancel" the real estate contract. In essence, the seller forces the buyer's hand, since constructive cancellation requires the buyer to either back off on the requests or back out of the deal, says Brian J. Thompson, a CPA and attorney in Chicago."
I wondered about a couple details though. I am in a contract and I am the buyer. I have to give my inspection response in a few days. If I ask for price reduction can they effectively say "no - and by the way this contract is now legally void and we are done". ??
Neither a lawyer or an RE, but yea, seller can say see ya later.
The answer above by Nobodysbusiness is the most conservative and precise. Everything depends on the exact wording in your contract and those vary by state. What’s true with our contracts may not be the case in other locales. Important to read your own contract! :-)
That said… In most contracts I have any experience with, once signed, the seller has a very few paths to cancel a contract without potential for consequences. It is intrinsic to most purchase and sale agreements that the seller is willing to sell. It is up to the buyer to decide whether they want to buy.
In our contracts, buyer has inspection and is free to make requests. Seller can either accept the requests (and do the work or make the concession), suggest a compromise, or reject the request completely. It sounds like this third option is the part you’re most curious about… What happens then? Then it’s in the buyer’s court to decide whether they want to go forward with everything as it is. Seller is not canceling the contract by saying no, but buyer can at this point If they are still within the timeline of that contingency.
In our contracts, buyer has inspection and is free to make requests. Seller can either accept the requests (and do the work or make the concession), suggest a compromise, or reject the request completely. It sounds like this third option is the part you’re most curious about… What happens then? Then it’s in the buyer’s court to decide whether they want to go forward with everything as it is. Seller is not canceling the contract by saying no, but buyer can at this point If they are still within the timeline of that contingency.
Yes this sounds like what I was wondering. Seems like you are saying if I make a request and they say no the contract remains in effect unless I say forget it after they say no to my request....that would be ideal.
Yes this sound like what I was wondering. Seems like you are saying if I make a request and they say no the contract remains in effect unless I say forget it after they say no to request....that would be ideal.
Yes.. Check with YOUR agent, but that's how it works in OUR contracts.
Just out of an abundance of caution to hopefully avoid something avoidable... perhaps keep something in mind, Bob. The fact that you decide when and where it's over, *shouldn't* mean you should just ask for anything you might want because there's no harm done if the seller says no. Smarter strategy always is to ask for only those things that are dealbreakers if you don't get them. Things that you can't do yourself after the contract. Items that might get flagged on appraisal and hold up financing.
Why be restrained even if the seller can just say no? Because sellers are emotional animals too, and this is where all the good will in a transaction can blow up because one side or the other seems unreasonable. I have seen it too often before, where one side, or both sides, crosses a line on inspection responses, and the rest of the contract is a battle of bad feelings.
This is not the last time you will need the seller's good will. There may be other negotiations in the contract where you will want the seller to work with you, or even grant you a favor, an extension, or an early close, or complete some small thing your lender requires. You don't want the contract to blow up later over a day change in schedule or a $9.99 smoke alarm that you need.
Always be reasonable... Transactions start out, usually, with a certain amount of good will... burn it up... and you can't get it back.
Last edited by Diana Holbrook; 04-07-2021 at 10:51 AM..
What happens then? Then it’s in the buyer’s court to decide whether they want to go forward with everything as it is. Seller is not canceling the contract by saying no, but buyer can at this point If they are still within the timeline of that contingency.
In this hypothetical situation which undoubtedly varies by location, if the buyer pulls out, are they out $$$? Aside from any inspection fees, for example... earnest money? That might be a dumb question since I'm not a pro and it's been years since I bought this house.
In this hypothetical situation which undoubtedly varies by location, if the buyer pulls out, are they out $$$? Aside from any inspection fees, for example... earnest money? That might be a dumb question since I'm not a pro and it's been years since I bought this house.
In our contracts, they'd get their earnest money back, assuming all else is well in the procedure. In some locales, there is non-refundable money.
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