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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 9:55 pm to TDsngumbo
It's nothing personal, but to me, a contract works both ways.
It's not intended to only help the buyer.
If the buyer can use the PA to his advantage, why can't the seller do the same without being a dick?
This foolishness is going to cost me time and money.
It's not intended to only help the buyer.
If the buyer can use the PA to his advantage, why can't the seller do the same without being a dick?
This foolishness is going to cost me time and money.
Posted on 5/26/15 at 10:14 pm to blueboxer1119
They should at least forfiet their deposit
Posted on 5/26/15 at 10:35 pm to tygerfan1
quote:
They should at least forfiet their deposit
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 10:37 pm to blueboxer1119
I would at least reach out and talk to them without realtors involved.
Give them an opportunity to explain their situation and personalize the situation.
If you get the feeling they are trying to screw you over or if they're assholes then proceed how you see fit.
More than likely you will come to an agreement and both leave with respect for the other.
These things seem to come back to people no matter how they handle them.
Give them an opportunity to explain their situation and personalize the situation.
If you get the feeling they are trying to screw you over or if they're assholes then proceed how you see fit.
More than likely you will come to an agreement and both leave with respect for the other.
These things seem to come back to people no matter how they handle them.
Posted on 5/26/15 at 10:42 pm to KJason
They wouldn't even let me see the inspection report.
One side of me says I should be lenient. The other side says that my job is to provide for my family and put us in the best possible position financially, feeling of others be damned.
One side of me says I should be lenient. The other side says that my job is to provide for my family and put us in the best possible position financially, feeling of others be damned.
Posted on 5/26/15 at 10:48 pm to blueboxer1119
I get it, I really do. Just wanted to try and provide some perspective. You're certainly within your right to do what you want and you wouldn't be wrong either way.
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 5/26/15 at 11:20 pm to blueboxer1119
quote:
It's nothing personal, but to me, a contract works both ways. It's not intended to only help the buyer. If the buyer can use the PA to his advantage, why can't the seller do the same without being a dick? This foolishness is going to cost me time and money.
How is this going to cost you money?
I've made offers on several houses that were under contract in case one party backed out.
You might want to have a conversation with your realtor if they weren't accepting these offers.
A 10 day inspection period is not long IMO so you weren't really that tied up. If you're going to ask for someone to pay deposit +10%, you're really looking to make a buck, not fair compensation for your losses.
If you're really trying to "provide for your family" it shouldn't be by taking that much money from someone for deciding not to buy your home.
Act like a human, cut them some slack, and sleep better at night. One day you or your family may be in a similar situation.
Posted on 5/26/15 at 11:50 pm to KJason
quote:
Act like a human, cut them some slack, and sleep better at night. One day you or your family may be in a similar situation.
THIS!!!!
Posted on 5/27/15 at 12:15 am to SG_Geaux
You're not going to get people to close on a house they have decided not to buy.
As stated earlier it's only been 10 days, not weeks or months.
Move on.
As stated earlier it's only been 10 days, not weeks or months.
Move on.
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 1:46 am to Jag_Warrior
quote:
the most generous option I could offer would be loss of the deposit
This, forget the lawsuit, keep the deposit and move on.
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 7:45 am to blueboxer1119
Did you miss out on another sale because of these guys?
edit: to me it sounds like they gave notice in the appropriate window albeit not in writing. If you want to attempt to stick it to them over a technicality because you are disappointed in the sale not going through I think it's a mistake.
edit: to me it sounds like they gave notice in the appropriate window albeit not in writing. If you want to attempt to stick it to them over a technicality because you are disappointed in the sale not going through I think it's a mistake.
This post was edited on 5/27/15 at 7:54 am
Posted on 5/27/15 at 8:06 am to dagrippa
If you keep their deposit (which I'm assuming is 5k-10k), is there a possibility they sue you for it to be returned and black the sale of your house in the process?
Have a talk with your realtor about exactly what the conversation was with their realtor in regards to the cancellation of the PA. Sometimes realtors let a conversation act as a proper cancellation method out of professional courtesy.
There is a chance your case to keep the deposit is groundless and you end up actually costing yourself money and prevent the sale of your house for a year or so.
Have a talk with your realtor about exactly what the conversation was with their realtor in regards to the cancellation of the PA. Sometimes realtors let a conversation act as a proper cancellation method out of professional courtesy.
There is a chance your case to keep the deposit is groundless and you end up actually costing yourself money and prevent the sale of your house for a year or so.
Posted on 5/27/15 at 8:06 am to dagrippa
quote:
Did you miss out on another sale because of these guys?
I would hope the OP's realtor kept taking back up offers and kept showing the house throughout this awful 10 days.
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