We are Canadian. living in Ontario. We have signed a contract to buy a house and have put $2,000 down as a deposit. My husband and I are now thinking of separating and if we do, we do not wish to go forward with the purchase. Will we be sued by the real estate company or the seller. We would appreciate any help we can get. K.B.
2006-08-14 08:04:59 · 25 answers · asked by K B 1 in Business & Finance ➔ Renting & Real Estate
First I work at a title compny, so my answer is correct. When you signed the contract it is continget on you obtaining finace for the said property. If the contract was in both of your names that is how you would have to obtain financing. If you seperate you will not qualify for financing. All you have to do is go to your mortgage broker and aske him for a letter denying financing. All you have to do is show the realtor that letter and you will be refunded your money immediately. Your deposit is being held by a title company right now in escrow. If you can not qualify for financing your are not obligated to purchase, and you get your escrow back.
2006-08-14 08:15:44 · answer #1 · answered by Gray D 1 · 3⤊ 3⤋
Not sure about Canadian law; in US, a buyer usually puts up a small sum, a few thousand dollars, which is called "good faith" money, but essentially it s an incentive for the buyer to keep going on the sale; it is important because the seller loses potential buyers should the deal fall through, or if the buyer has second thoughts. Again, it may be different in Canada, I would suggest contacting another realtor and ask the question anonymously, or just talk to your realtor and see what he says; if there are other interested buyers, the seller may waive any claim to the deposit (this also happens in the US, and it is considered hardship). Good luck.
2006-08-14 08:11:49 · answer #2 · answered by taishar68 2 · 0⤊ 0⤋
In US terms it always depends on the Contract. You could go to the Broker and the Seller and plead your case. You could offer part or all of the Earnest Money Deposit as a way to get out of the contract.
Our real estate contracts gives buyers a no ask or tell if they want or need to walk up to a point...
2006-08-14 08:19:05 · answer #3 · answered by Scott 6 · 0⤊ 0⤋
Yes you can back out. You will get your money returned to you but this may take a few months.
And no you will not be sued by either the realestate comapny or the seller. This is why you only put down a small amount of money for a deposit. I know realestate agents and lawyers, and they told me when I bought my house. If you want to back out now is the time to do so. I asked about loosing my deposit, I was told that I would get it back, but it would take up to 2 months to do so.
2006-08-14 08:09:55 · answer #4 · answered by John M 3 · 0⤊ 0⤋
Hopefully you have signed a contract with some type of contingency especially a loan commitment that's although you've been approved is tenatively approved 3 or 4 days before closing.
Go to your local electronics warehouse and order a truckload of goodies, dishwashers, stereos, and computers and have the store finance it. Once the credit gets run, it will prevent you from getting the house loan and if you can't get the loan you can walk away from purchasing the house.
Otherwise, just walk away and suck up the fact that you lost $2,000.
2006-08-14 10:36:37 · answer #5 · answered by El_Nimo 3 · 0⤊ 0⤋
Be straight up with the real estate company and tell them what has happened. Honesty is best instead of coming off as a chicken shyt. I don't see why they would sue you or not give you your deposit back. A home is a major purchase, it's not like you are shopping for shoes, and you can change your mind anytime you want. Definitely call a lawyer if they don't give you back your $2,000.
2006-08-14 08:13:15 · answer #6 · answered by geewhizbaby2008 3 · 0⤊ 0⤋
If you placed any contingencies on the deal then you can back out, provided you state the contingency as the reason you are backing out.
Examples of common contingencies:
1) Buyers to obtain suitable financing to their liking
2) Home inspection reports to buyer's liking
3) Title history to buyer's liking
4) Environmental reports to buyer's liking
A good real estate agent would always negotiate at least one contingency option. But they are dated. You must act quickly or they expire. Ask your agent what contingencies you have in place for backing out of the deal.
Otherwise, you will loose your deposit. That is generally the most you can loose, again assuming you have a good agent who filled out the purchase contract correctly. (This is why having a good agent is important)
Your agent will not sue you for not purchasing the property. They can sue you if you decide to go with another agent or negotiate to buy the house from the seller without them.
2006-08-14 08:09:22 · answer #7 · answered by Plasmapuppy 7 · 2⤊ 0⤋
It depends on what your deposit is for. If it was to hold an offer and you didn't have any conditions attached (e.g. conditional on financing) then yes, there is a chance you could be sued. However, this isn't a as bad a thing as it sounds like.
The vendor has to continue to try to sell the house and if a reasonable offer is made then must accept it. Then S/he could attempt to sue you for the difference as well as any additional costs that s/he incurred due to your reneging on the offer (which could be anything from yard work hired out if they moved out as a result of your offer, to extra advertising, lost wages)... I know it sounds bad but I giving worse case scenario...
What may work better for you is to find anything that was not disclosed and use it as leverage to back out of the offer... This could be quite simple as you were assured it was a quiet neighborhood yet you witnessed noisy events (e.g. a driver screeching her/his tires, loud music being broadcast by a neighbor, a police call to a neighbors house)... If you try this course of action you will need to show some pattern that gives you reason to believe the neighborhood isn't as serene as advertised...
Other things that could give leverage would be to hire a home inspector (everyone should do this) and give them instructions that you want them to be extremely critical and use the report of a 'small crack' in the foundation to leverage out of the sale...
I hope this helps and hope you and your husband can work out your differences (even if it means the 2 of you making the break)
2006-08-14 08:29:33 · answer #8 · answered by Nitrox Frogy 3 · 0⤊ 0⤋
You loose your 2000.00 good faith deposit. Dont worry bout it. It happens all the time and thats why you put the money down in the first place. If you are lucky and haven't been pre approved that would get you out and your money back. You will not be sued. That is what the money up front is for. Next time don't put so much down though. 500-1000 is normal.
2006-08-14 08:09:35 · answer #9 · answered by Karrien Sim Peters 5 · 1⤊ 0⤋
What contract did you sign? You may just end up losing the $2000 deposit. Best bet is to go through with the purchase and then re-sell. At least you may see a positive appreciation.
2006-08-14 08:08:19 · answer #10 · answered by fastcarceo25 3 · 0⤊ 1⤋