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My wife and I have signed a contract to buy a new home, within a couple of days from signing the contract, we came to know about different energy inefficient issues of the home (just one AC unit for the two story 3000 sq ft home, no radiant barrier etc.,). The sales agent brushed our concerns aside saying “changes to an inventory home would be prohibitively expensive, so nothing can be changed”. Based on the treatment we got, and the fact that our concerns were not being addressed, we decided to back out of the contract within a week of signing the contract. The agent now says they can put the radiant barrier, but still does not address our other concerns and also started acting rude.
We have opted out of the contract, and now the agent has agreed to return the earnest money but the cancellation agreement reads “Buyers Remorse” as the reason for cancellation, which I do not agree with, as they have not put in efforts to to address my concerns. I am trying to think of any legal issues associated if I sign the cancellation agreement it as currently reads. Please advice if I should get it reworded? If yes, to what?
What 2bindenver said. As long as you agree with the terms of the cancellation notice and you get your money back, then who cares what reason they put down?
Does the cancellation not have a clause absolving either party from further liability?
I'm curious about this as well. While when I practiced in the States a buyer could cancel at inspection and not even give a reason, I've never seen 'buyer's remorse' as grounds to back out of a contract especially a week before closing. Check or no check, not sure I like the grounds being 'buyer's remorse', though I'm not an expert on RE laws in the OP state.
I agree with MikeJ. Our termination forms read that the buyer and seller release each other from any liability, damages or further obligations regarding the property.
You want to make sure they don't come after you for breech of contract and damages of some sort.
I think "buyers remorse" set a bad precedent. What is the point of even having a contract if the buyer can back out at the very last minute for buyer's remorse. I think a seller has to just keep marketing a property until close of escrow. Hmm, maybe if they get a higher offer, the seller can end the prior contract for "seller's remorse".
[edited to add]
The more I think about this, the more it makes sense. If I were selling a property today, I would write in there that seller will maintain the right to market and accept other offers (nullifying this contract) until all of the buyer's contingencies are removed. Buyer's contingencies can be, but not limited to "buyer's remorse, unsatisfactory inspection, or unable to obtain desirable funding".
I realize I am off on a tangent here and this doesn't really apply to the OP. I was just thinking out loud..
Last edited by DowntownVentura; 10-08-2009 at 03:38 PM..
I do not see "a week before closing" in the OP's comments. He is backing out a week after signing the purchase contract:
Quote: "back out of the contract within a week of signing the contract"
Also, this sounds like a new build spec home ("inventory home"). Depends on what the builder's contract allows for cancellation. Apparently they are agreeing to cancel.
I do not see "a week before closing" in the OP's comments. He is backing out a week after signing the purchase contract:
Quote: "back out of the contract within a week of signing the contract"
Also, this sounds like a new build spec home ("inventory home"). Depends on what the builder's contract allows for cancellation. Apparently they are agreeing to cancel.
I stand corrected for putting a week before closing; misread when reading the rest of the OP and the "buyer remorse' part is what jumped out at me - though still think better language for canceling the contract could be used since the OP did say it wasn't buyer's remorse, but rather "they have not put in efforts to to address my concerns". Though I guess if the cancellation agreement is airtight in releasing the OP from any future liability, obligations etc. it doesn't matter.
Unless yolu were not getting a check right then I would not sign it with it saying buyers remorse on it unless you are absolutely sure you have an out and are getting the deposit back.
An agreement of cancellation and refund of earnest money should not need a reason on it. The 2 sides are just agreeing to cancel and return the buyers earnest money.
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