Real Estate sellers........ (rent, HOA, condo)

[vrhunski]

Ok here is situation.

I made all cash offer for 1/1 condo 295k in mid town SJ.
Seller accepted offer. Then we go and signed all those papers.
- contract, dislosers, buyer cotigency etc... I signed everything and also I signed in title company....I already paid to title company 8850$ and already wrote a check to all rest $286150
Closing date suppose to be 29 January and move in date on same date.

I canceled my rent (2850$ per month) + transferred money from international account and get prepared for this 29 January.

Then suddenly (January 25) seller wanted to change 'her mind' and then she asked for more money. We had a mediation-meeting in co-dwell banker agency and we agreed to sign addendum and to pay her more money (we wrote down buyer accept to pay seller closing cost). We also changed closing date to 11 February.

After all she asked for MORE money now again (January 28). I told my agent that I will hire a 350$ per hour lawyer and go in court for this case. We will have to move in hotel very soon.

Can you guys give me some advice or do some comment on my case?

[butercup]

I'd asap go to the main city data page and scroll down past all of the cities and states to the other groups - there's a Real Estate group and within that is a subforum called Real Estate Professionals - they are pretty active over there and have helped me. Good luck, that sounds like an awful situation! Hopefully in a month you'll be all settled and can forget about the nightmare closing!

[crescent22]

I don't get it - you have a signed contract.

You do have to resort to the courts to enforce this contract though. Don't waste any more time. Your real estate lawyer should contact the seller's lawyer and say you will go to court if closing does not occur on Feb 11. Go hire the litigation attorney right now.

Now in my area, closing date includes the following 30 days, so you may not be able to sue (and they may be able to delay) until March 11, but you should use that time to draw up the papers and lean on them to change their mind back.

This of course all assumes that the Seller does not have an out in the contract wording somewhere.

[DMenscha]

Generally (and I emphasize generally) you can't force a seller to sell. That being said, the agents have done their job and are entitled to their commission(s). I've found that when presented with that ugly truth, sellers become far more accommodating.

I'm finding it hard to imagine why you accepted the additional expense in the first place.

I sure wouldn't throw any more money at the seller.

Good Luck, this one sounds ugly.

@Crescent. CA real estate law is very very different than NY.

[DocGoldstein]

Originally Posted by DMenscha

the agents have done their job and are entitled to their commission(s). I've found that when presented with that ugly truth, sellers become far more accommodating.

DMenscha, can you talk about this further? Never been in this situation (most of my transactions in the past 3 years have been at the courthouse steps).

Is the seller obligated to pay commission if they disrupt the sale?

[80skeys]

Originally Posted by vrhunski

Then suddenly (January 25) seller wanted to change 'her mind' and then she asked for more money. We had a mediation-meeting in co-dwell banker agency and we agreed to sign addendum and to pay her more money

That's your first mistake. Now the seller knows you are weak and they can bully you any way they want.

When it comes to negotiating, never act desperate. Always act like you don't really need the thing and that you can easily take your money and go elsewhere. The art of negotiation, man.

After all she asked for MORE money now again (January 28). I told my agent that I will hire a 350$ per hour lawyer and go in court for this case. We will have to move in hotel very soon.

Can you guys give me some advice or do some comment on my case?

This is a seller's market. Sounds like the seller figured out they can easily make more money and probably put too low of a price on their place initially. Either that or they figured out you're desperate for the place.

Lawyer won't do you any good unless the purchase agreement was signed by both parties meaning the seller is backing out of a legal contract.. There's a lot of contingencies and such in the house buying process that leaves a lot of legal ways for either party not to have to complete the deal. So you or your lawyer has to read the contract and all of that stuff to see which conditions apply to your contract

[vrhunski]

Originally Posted by 80skeys

Lawyer won't do you any good unless the purchase agreement was signed by both parties meaning the seller is backing out of a legal contract.. There's a lot of contingencies and such in the house buying process that leaves a lot of legal ways for either party not to have to complete the deal. So you or your lawyer has to read the contract and all of that stuff to see which conditions apply to your contract

We signed (both of us) purchase agreemenet. We also signed contingency, disclosures, everything except deed in title. (I signed in title but she didn't). I also transferred 3% of amount to title company and they already pay some of seller debts (property tax, HOA fee etc...).Also I wrote another check for full amount to title as well.

[80skeys]

Originally Posted by vrhunski

We signed (both of us) purchase agreemenet. We also signed contingency, disclosures, everything except deed in title. (I signed in title but she didn't). I also transferred 3% of amount to title company and they already pay some of seller debts (property tax, HOA fee etc...).Also I wrote another check for full amount to title as well.

What does your real estate agent say about it?

[DMenscha]

Originally Posted by DocGoldstein

DMenscha, can you talk about this further? Never been in this situation (most of my transactions in the past 3 years have been at the courthouse steps).

Is the seller obligated to pay commission if they disrupt the sale?

Our listing agreements say that if I produce a buyer ready, willing and able to purchase the property, I have performed my duty as an agent and am entitled to the commission agreed to. So, if a seller refuses to close a transaction, I can demand he pay my commission (If I'm the listing agent).

In our MLS, if I was the buyer's agent and the listing agent received money from the seller, the listing agent would be obligated to split it with me.

This actually happened to me at the beginning of last year. While the seller was obligated to pay a $12K commission, the listing broker settled for $4K. I would have preferred the listing agent to go for the full amount, but the contract was between the owner and the listing agent and I had no status to demand the full amount according to my attorney.

There is a lot of case law on the subject too. I don't think the sellers ever won a case.

[imcurious]

1. Read every word of your contract and all addendums.
2. WHY did you agree to "give her more money?" What was the actual situation that arose? If you had a bi-lateral, signed contract, WHY would you just give her "more money," out-of-the-blue?
3. What does your agent say?
4. Again, go back to the contract and actually read it. Then meet with your agent, and the agent's broker, if necessary, and find out what is actually going on.