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Old 11-21-2009, 03:01 PM
 
7 posts, read 22,196 times
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My brother-in-law and his wife have signed an offer for a home and sent it over to the sellers to sign. The sellers signed it after a bunch of haggling and nonsense (less than $200). The sellers disclosure also has a crack in the foundation wall in it, but his RE agent says that because it was fully disclosed they may not be able to back out because of it. My question is, in DE since the earnest check has probably not even been deposited, can they cancel the contract and not lose their earnest money?

I know this has been posted, but the other threads dealt with right before closing, I am asking because they are just a day after they signed.

Thanks
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Old 11-21-2009, 03:11 PM
 
Location: DFW - Coppell / Las Colinas
38,906 posts, read 43,764,926 times
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His agent should know what outs he has and the big one can be around the inspection, every state is different. In TX the 1st 7-10 days are part of an option period where you do your inspections and you can terminate for any reason. You only lose a nominal Option fee.

Hopefully he has something similar. Keep in mind his agent works in his best interest and if he wants to terminate the agent should be the one to help him.
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Old 11-21-2009, 03:23 PM
 
7 posts, read 22,196 times
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Well Im not sure of an option period, but he said he does have an inspection clause. I guess he could just do his inspection and then complain and get out that way. I mean really he said when they negotiated the seller was crying about having to pay for a home warranty so fought until they split it ...
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Old 11-21-2009, 03:35 PM
 
Location: DFW - Coppell / Las Colinas
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Only someone knowledgeable about the contract in his state can give you a good answer. You might also try posting in that states forum.
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Old 11-21-2009, 04:02 PM
 
Location: Virginia Beach, VA
2,124 posts, read 8,444,219 times
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bloody, i'm confused why your brother wants out of the contract? buyers remorse? why? because of the negotiations? He knew about the crack... Now, when he does an inspection, the inspector may note that the crack is more extensive and a symptom of something larger..

But really, a contract is just as valid the day after it is written as it is 30 days later. Tell your brother to settle down, do his inspection, and see if the house is just as good as he thought it was when he started the negotiation.

shelly
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Old 11-21-2009, 04:43 PM
 
Location: Salem, OR
15,068 posts, read 37,270,482 times
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It sounds like they are trying to buy a FSBO?

At least in Oregon, you have 5 days after receiving the seller's disclosure statements to cancel the contract. I'd check to see what DE's state laws are.
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Old 11-22-2009, 11:45 AM
 
7 posts, read 22,196 times
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No its not a FSBO there are 2 realtors buyer and seller, however the seller realtor is also the owner of this home.

Well from what he is telling me his realtor is not being very helpful, I think b/c he wants him to go forward with the deal. His realtor told him that they are locked in and the only outs are the financing contingency and the inspection. But that with the inspection it has to be a "major defect" and the seller has the opportunity to fix the issue.

What I dont understand is with all that I have been reading, the inspection report is a major bargaining chip. And that if there is anything that is on there the seller should have to fix. I mean what is major, to a handyman a chipped tile may mean nothing, but to another person who doesnt work with his hands he would have to hire a contractor
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Old 11-22-2009, 12:41 PM
 
Location: Palm Coast, Fl
2,249 posts, read 8,520,315 times
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I think if your brother really wants out of the deal he should take his contract and see an attorney for advice. I know where I am you are allowed time to view the sellers disclosure if it wasn't given before the contract was signed. There are different contracts used here that have different escape clauses and the inspection requirements/loopholes are different in each one. He really would be better served by seeing an attorney who can tell him what he can/can't do.
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Old 11-22-2009, 01:11 PM
 
7 posts, read 22,196 times
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Yea thats what I told him, he also is hiring his own inspector and thinks that its worth the 500$ if he can get his earnest money back.

I do think this may be a little case of buyers remorse to be honest with you, however its his choice and Im sure he wont be the first or the last.

I wouldnt want that with my home, but then again I wouldnt want to force someone to make a major decision in their life and regret it. I understand its business, but we are all people. the buyers agent asked if he wanted him to contact the seller and ask out of the contract, what do you all think about that idea?

I would probably let someone out with like say a 25% forfeiture of deposit or something like that, but is that unreasonable to ask?
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Old 11-22-2009, 02:31 PM
 
Location: DFW - Coppell / Las Colinas
38,906 posts, read 43,764,926 times
Reputation: 48889
You should re-enforce with your Bro that his agent works for him and it doesn't matter what the agent wants. If your Bro wants out of the contract the agent should do everything legally in his power to accomplish his clients best interest.

You might also read the contract about the inspection. Another out we have in TX regards the HOA documents. Is the home part of an HOA where he can terminate once he gets the documents ?

There is usually a financing contingency if he does not qualify for the loan.
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