- My Forums
- Tiger Rant
- LSU Recruiting
- SEC Rant
- Saints Talk
- Pelicans Talk
- More Sports Board
- Fantasy Sports
- Golf Board
- Soccer Board
- O-T Lounge
- Tech Board
- Home/Garden Board
- Outdoor Board
- Health/Fitness Board
- Movie/TV Board
- Book Board
- Music Board
- Political Talk
- Money Talk
- Fark Board
- Gaming Board
- Travel Board
- Food/Drink Board
- Ticket Exchange
- TD Help Board
Customize My Forums- View All Forums
- Show Left Links
- Topic Sort Options
- Trending Topics
- Recent Topics
- Active Topics
Started By
Message
Backing out of Purchase Agreement
Posted on 5/26/15 at 9:33 pm
Posted on 5/26/15 at 9:33 pm
Here's the situation:
I listed a house with a realtor.
The house went under contract and allowed buyers a 10 day inspection period.
On the 10th day, my agent got a call that they were backing out of the purchase agreement because they thought the AC was too old (I offered concessions, even replacing unit, but buyers rejected). Essentially, they were looking for a way out.
In the PA, it states that buyers must submit a reason in writing for backing out.
The purchase agreement says that if this is not done in the 10 day window, the contract is binding.
This was not done by the buyers.
Also in the PA, it states that if buyers don't go forward with the sale after the 10 day inspection, seller can sue for deposit + 10% of sales price (considerable amount of $) + other fees.
I have the house back on the market, but this has caused a huge dilemma for me.
Should I tell buyers that I plan on going forward with a lawsuit if they back out of the sale in hopes that they go forward?
Somebody (prob buyers agent) dropped the ball here.
I refuse to beleive that a PA is to protect buyers only.
How should I handle this and do I have any legal recourse?
*edited for the lunchbox poster.
I actually don't give a crap if I hurt anybody feelings. This is business. (Better?)
I listed a house with a realtor.
The house went under contract and allowed buyers a 10 day inspection period.
On the 10th day, my agent got a call that they were backing out of the purchase agreement because they thought the AC was too old (I offered concessions, even replacing unit, but buyers rejected). Essentially, they were looking for a way out.
In the PA, it states that buyers must submit a reason in writing for backing out.
The purchase agreement says that if this is not done in the 10 day window, the contract is binding.
This was not done by the buyers.
Also in the PA, it states that if buyers don't go forward with the sale after the 10 day inspection, seller can sue for deposit + 10% of sales price (considerable amount of $) + other fees.
I have the house back on the market, but this has caused a huge dilemma for me.
Should I tell buyers that I plan on going forward with a lawsuit if they back out of the sale in hopes that they go forward?
Somebody (prob buyers agent) dropped the ball here.
I refuse to beleive that a PA is to protect buyers only.
How should I handle this and do I have any legal recourse?
*edited for the lunchbox poster.
I actually don't give a crap if I hurt anybody feelings. This is business. (Better?)
This post was edited on 5/27/15 at 6:38 pm
11
Posted on 5/26/15 at 9:43 pm to blueboxer1119
I've been on the opposite end of this (the one backing out). I know what it feels like to make a stupid fricking mistake and realize it after signing. We used an excuse much like the one you described to get out of it, as our realtor suggested. We were young and were taken advantage of by the realtor and she knew it.
Don't be a dick. Let it go and move on.
Don't be a dick. Let it go and move on.
Posted on 5/26/15 at 10:36 pm to blueboxer1119
Sue. Breach of contract. You have nothing to be sorry for either.
Posted on 5/26/15 at 10:54 pm to blueboxer1119
I'd contact an attorney. Buyers do this way too often.
You might even find an attorney that will do it under a contigency fee arrangement, so you won't have to come out of pocket for legal fees.
You might even find an attorney that will do it under a contigency fee arrangement, so you won't have to come out of pocket for legal fees.
Posted on 5/27/15 at 12:47 am to blueboxer1119
I hear you and understand the frustrations. However, as mentioned, it's only been 10 days. Are you having trouble getting offers for your listing? If not, move on and sell the home to someone who wants it. The buyers you have now aren't going to be forced to buy your place so really all you can do is penalize them. If you have no other bites for your house or you lost other buyers because of these guys, then I can understand you wanting to keep their deposit.
Posted on 5/27/15 at 12:56 am to blueboxer1119
Just from your description of the situation, in your position, the most generous option I could offer would be loss of the deposit. In a situation I was in last year, I was prepared to go for the deposit and a lawsuit for performance or damages. It has nothing to do with being a nice guy or being a dick. A contract is a contract. Business is business. If people want to "play" house buyer, that game costs money to play.
And this agent, was he an actual buyer's broker (being paid by the purchaser) or was he entitled to a sub agent's fee from the sale (being paid by you/your agent)?
And this agent, was he an actual buyer's broker (being paid by the purchaser) or was he entitled to a sub agent's fee from the sale (being paid by you/your agent)?
Posted on 5/27/15 at 6:20 am to blueboxer1119
Just so you are clear, if you take this to probate and tie up in the system no one will touch your house with a ten foot pole. This will not be resolved overnight. You could potentially lose as the buyer may convince they were acting within good faith and did notify you within the period albeit not in writing. If an email was submitted within the period that may work as well.
Court is hell. Go after their earnest or % of it. Sell it to someone who wants it.
Court is hell. Go after their earnest or % of it. Sell it to someone who wants it.
Posted on 5/27/15 at 11:38 am to blueboxer1119
Just b/c you can sue for the 10% doesn't mean you'll get it - you'll have to show you incurred damages sufficient to compensate the award, which is going to be difficult to do with only a 10-day delay. You aren't going to find a skilled attorney to take that on a contingency basis either, so it's going to cost you to pursue it.
I would drop it - if you can be honest with yourself and come out convinced that this 10-day delay cost you some money, then keep some of the deposit. But I'm guessing you can't.
I would drop it - if you can be honest with yourself and come out convinced that this 10-day delay cost you some money, then keep some of the deposit. But I'm guessing you can't.
Posted on 5/27/15 at 11:53 am to blueboxer1119
So they actually gave you notice within the 10 day window, but it wasn't in writing? I couldn't imagine suing someone in that scenario. I mean they gave you notice. Don't be a dick.
But you knew they could back out at any point in the 10 day window. They did this. Yes technically you can legally sue because it wasn't in writing. It's just a dick move IMO. You're going try to take $30k from someone because they didn't write something down?
The contract has to say in writing because everything always has to be in writing so that there is physical evidence of the notification. Come on man, be a reasonable human. These contracts were not intended for you to be able to file a bullshite lawsuit if you want. But again, yes, you legally can do it.
quote:
Basically, yes, this will cost me money.
But you knew they could back out at any point in the 10 day window. They did this. Yes technically you can legally sue because it wasn't in writing. It's just a dick move IMO. You're going try to take $30k from someone because they didn't write something down?
quote:
Not sticking anything to anybody, simply enforcing a contract that they signed. Pretty simple concept.
The contract has to say in writing because everything always has to be in writing so that there is physical evidence of the notification. Come on man, be a reasonable human. These contracts were not intended for you to be able to file a bullshite lawsuit if you want. But again, yes, you legally can do it.
This post was edited on 5/27/15 at 12:10 pm
Posted on 5/27/15 at 12:13 pm to blueboxer1119
Screw them. They signed the agreement and knew or should have known the contents of said agreement. It's right there in black and white.
They found an "issue" with the AC that they didn't even notify you of in proper manner and you even offered to fix the made up "issue" by replacing the AC. I know in LA that's all that's required for you to do is to fix any issue they found. The fact that they aren't OK with you fixing the issue they (incorrectly) notified you of means they are acting in bad faith. Go after them legally just as its laid out in the contract that they signed. 10% penalty, specific performance, whatever. Again, they are the ones acting in bad faith, not you.
They found an "issue" with the AC that they didn't even notify you of in proper manner and you even offered to fix the made up "issue" by replacing the AC. I know in LA that's all that's required for you to do is to fix any issue they found. The fact that they aren't OK with you fixing the issue they (incorrectly) notified you of means they are acting in bad faith. Go after them legally just as its laid out in the contract that they signed. 10% penalty, specific performance, whatever. Again, they are the ones acting in bad faith, not you.
Posted on 5/27/15 at 12:41 pm to blueboxer1119
Been on both sides of this. When someone backed out on me I just let it go. It wasn;t worth my time to deal with it. I even refunded their deposit no questions asked. I relisted it and it sold for the same price it was under contract for originally.
On the flip side, I was under a contract for a lot and the sellers agent could not get me the exact setbacks. When I found out what they were on my own I tried to design the house but couldn't because the land was too small. it was my mstake as I shouldn't have assumed they were the same as the block over.
I then tried to back out by offering my deposit and they threatened to sue me for the deposit plus 10 percent of sales price. I didn't care because in the meantime I found a better lot for much less money. I called their bluff because I was coming out ahead either way. After about a month and right before closing I had my attorney threaten to sue them for my deposit because of multiple illegal stipulations in the original contract. They then said I could get out if I would let them keep the deposit. I agreed and it went away.
A month later they had the property under contract for 10 grand more than I was paying plus they kept my deposit. Turned out to be big waste of time for all parties.
My advise, just let it go. Life is too short.
ETA: Just because you think your contract is solid doesn't mean it is. Real estate agents by nature aren't too smart and are very lazy. This has never been more the case now with agents preparing and people signing these things quickly via docusign on their phones. Chances are any decent real estate attorney can find holes in the contract rendering it useless in court anyway. And like another poster said, you have no shot of proving the damages are worth 10% of the selling price, especially if you re-list it and it sells for a close price.
On the flip side, I was under a contract for a lot and the sellers agent could not get me the exact setbacks. When I found out what they were on my own I tried to design the house but couldn't because the land was too small. it was my mstake as I shouldn't have assumed they were the same as the block over.
I then tried to back out by offering my deposit and they threatened to sue me for the deposit plus 10 percent of sales price. I didn't care because in the meantime I found a better lot for much less money. I called their bluff because I was coming out ahead either way. After about a month and right before closing I had my attorney threaten to sue them for my deposit because of multiple illegal stipulations in the original contract. They then said I could get out if I would let them keep the deposit. I agreed and it went away.
A month later they had the property under contract for 10 grand more than I was paying plus they kept my deposit. Turned out to be big waste of time for all parties.
My advise, just let it go. Life is too short.
ETA: Just because you think your contract is solid doesn't mean it is. Real estate agents by nature aren't too smart and are very lazy. This has never been more the case now with agents preparing and people signing these things quickly via docusign on their phones. Chances are any decent real estate attorney can find holes in the contract rendering it useless in court anyway. And like another poster said, you have no shot of proving the damages are worth 10% of the selling price, especially if you re-list it and it sells for a close price.
This post was edited on 5/27/15 at 12:54 pm
Posted on 5/27/15 at 11:10 pm to blueboxer1119
Why would you come here asking for advice, then try to only defend your opinion that differs than others? Obviously you came here to make yourself feel better for trying to take advantage of the buyers. Take the deposit as many said to be a reasonable fee. If you continue to seek legality against the buyers to try and nail them to the cross, bring your pity party somewhere else to convince yourself you're doing the right thing.
Page 1 of 1
Popular
Back to top
Follow TigerDroppings for LSU Football News