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Hi all, I have an offer on a home that was accepted with a portion of the EMD non-refundable at acceptance. The property was misrepresented in the listing as it included bedrooms and bathrooms that were not permitted in the basement and did not show up in the city's records.
The seller delivered a set of incomplete/conflicting disclosures with quite a few disclosures missing. If the seller doesn't deliver a completed set of disclosures by the Seller Disclosure Deadline, is the seller in default and am I allowed to back out of the contract without forfeiting any of my EMD?
I just passed on a land deal in a western state that requires disclosure from the seller within five days of offer acceptance. We got an accepted offer on a Tuesday, by Friday we still didn't have a disclosure document. No matter, as we found defects in the property by then with our due diligence, but when they finally handed over an out of date and incomplete disclosure form to our agent on Saturday it was an easy "game over" for us.
The disclosure has conflicting information - the seller currently occupies and the seller has never occupied are both checked. The zoning compliance is also left blank along with other more minor disclosures.
You are asking us to advise you on what a contract we have never read, says. So... don't expect much.
You really need legal counsel.
As a practical human issue not a legal issue, the real question often will come down to whether the seller thinks it is a justifiable reason to cancel, because the title company (or whoever is holding the earnest money) isn't likely to get between you to decide. If the seller won't sign to release the earnest money, you may need to take it to court in order to get it. Depends on what the seller does, and the laws and customs in your area, and what your contract says.
Last edited by Diana Holbrook; 06-02-2021 at 08:04 PM..
I haven't deposited the earnest money yet as it's not yet due and this issue literally arose right after they signed the contract. I'm just curious as to whether anyone has encountered a similar situation.
I haven't deposited the earnest money yet as it's not yet due and this issue literally arose right after they signed the contract. I'm just curious as to whether anyone has encountered a similar situation.
Similar like unpermitted work in basements and additions and conflicting or missing disclosure answers? All the time. Sometimes it's important, sometimes it isn't. Depends.
Similar like unpermitted work in basements and additions and conflicting or missing disclosure answers? All the time. Sometimes it's important, sometimes it isn't. Depends.
Thanks, Diana. I meant in terms of what would happen to the EMD if I choose not to deliver based on the misrepresentation on the listing of what I thought I bid on or just on the failure to deliver complete disclosures by the deadline. Would the seller have the right to come after me for the EMD or is there just cause that I am in the clear?
Thanks, Diana. I meant in terms of what would happen to the EMD if I choose not to deliver based on the misrepresentation on the listing of what I thought I bid on or just on the failure to deliver complete disclosures by the deadline. Would the seller have the right to come after me for the EMD or is there just cause that I am in the clear?
Depends whether you have a seller who wants to fight, or just wants to be rid of you quickly so they can go on to the next buyer.
Lots of people who can sue, don't. But I've seen some of both kinds. I don't know which of you would win on this. But people get mad when they perceive someone isn't keeping their word.
Were there other competing bids? If you're only a couple days into the contract, they may be able to call up the second-best offer and not have to put it back on the market. That makes it easier to just let you go. Sometimes.
Thanks, Diana. I meant in terms of what would happen to the EMD if I choose not to deliver based on the misrepresentation on the listing of what I thought I bid on or just on the failure to deliver complete disclosures by the deadline. Would the seller have the right to come after me for the EMD or is there just cause that I am in the clear?
Read your Offer, and the Disclosures.
They should provide your answer. If not, what does your agent say, if you have one?
If you have no agent, you should run the contract and disclosures to a local real estate attorney for opinion and guidance.
Knowledge and application of local rules and laws and practices regarding contract matters are much more important than well-meaning forum member opinions from across the country.
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So... don't expect much.
