I have already put down a deposit, and my realtor & mortgage broker have really taken me for a ride. They have put off financing approval till the day before closing, and changed terms of financing so many times I don't know what's what. Now that I say I want to back out, the realtor and sellers are threatening to sue. What will happen if I back out? Can they recover any damages from me?
2006-09-27 15:45:30 · 12 answers · asked by Brittany H 1 in Business & Finance ➔ Renting & Real Estate
First, you want to look over your purchase agreement and escrow instruction and note all contingency periods. If during your escrow, you removed any and/or all of this contingencies then you might be in danger of loosing your deposit. In addition, if you have a liquidated damages paragraph initialed, this could also be used to gain more money from you. The seller could also sue for 'specific performance' in which a court could order you to complete the transaction. In addition, if you do cancel the transaction and in doing this 'damage' the seller (property loosing value during the time you are in escrow) then he/she could sue for damages. To be honest, I would speak with your agent's broker and your lenders manager first to find a resolution. If that does not work, speak with an attorney. Whatever you do, do it quickly.
2006-09-27 17:19:55 · answer #1 · answered by monrovian21 2 · 1⤊ 0⤋
You will lose your deposit and the sellers will not be happy.
The contract depends on your ability to obtain financing and if you can't obtain financing - no contract and bye bye deposit.
If your realtor is pressuring you - I would back out immediately and demand a refund of any deposit OR you will report this to the authorities. If money is not recovered, consider any money lost as a valuable lesson learned. Flipping schemes usually involve corrupt sellers, realtors and mortgage brokers. If you contact your state's consumer protection division, they may be able to stop the sale and maybe recover your deposit. You may not be able to buy the house - but you can always buy a house with legit realtors and mortgage brokers.
2006-09-27 15:48:57 · answer #2 · answered by Anonymous · 1⤊ 0⤋
faster or later the lender is going to could artwork with the aid of somebody to end the paperwork. that's superb for a supplier to be a FSBO (on the industry with the help of proprietor), notwithstanding, the quantity of mind it takes to supervise an appraisal, inspection, survey and shutting information will ultimately effect your 'friendship'. is that this a funds transaction? If not a lender will require an appraisal. What language is on your 'sales contract' that addresses the economic distinction if the appraised fee is below the acquisition value? What approximately an inspection? Have the sellers agreed to end any and ALL needed inspections? Is it on a nicely/septic gadget or public water? If septic, has it been flushed those days? if so, whilst? Will there be a termite inspection? what's going to you do if the dwelling house starts falling aside 30 minutes after remaining? the supplier is saving funds, notwithstanding you're dropping stable suggestions. and that's a shame.
2016-10-01 10:58:06 · answer #3 · answered by vanderbilt 4 · 0⤊ 0⤋
So much depends on the contract. If your realtor is threatening to sue, get hold of a reputable realtor. My neighbor is a realtor pro and she says there is always a way to get out of the contract prior to closing. It may cost you the deposit, inspection fee, escrow fees and the like. Check with your Better Business Bureau. Mention you are writing the state Attorney General, the Ethics Committee of the state Real Estate Board.
2006-09-27 15:51:59 · answer #4 · answered by Anonymous · 0⤊ 0⤋
One you definitely need to get an attorney asap. If your contract is based on suitable financing and the contents of the contract have changed then you are under no obligiation to continue. You have the right to back out of any housing contract within 3 days of closing on it and seeing how you have not then you are under no obligation to continue with this purchase. You may lose your deposit but its better than going through with this deal! Do not let them pressure you into continuing it is illegal and against the law. The real estate expert here should know this. Consult with an attorney immediately.
2006-09-27 16:19:08 · answer #5 · answered by y d 2 · 1⤊ 0⤋
I don't blame you, the housing market continues to slump. Outlook is bad. That is why the seller and the realtor is being extreme here.
Find a lawyer, I am surprised your realtor wants to sue you. I really dislike some of those people.
Good luck!
2006-09-27 20:41:33 · answer #6 · answered by Price is what you pay for value. 3 · 0⤊ 0⤋
In most of case, you will loose that deposit, and they won't go for legal case. In case of mortgage company, they cannot change any term after you sign a contract. The interest rate will be flow until you lock.
If you have HOA, they have to give you a copy of HOA rule. you can back out of contract if you don't agree with HOA. This is totally legal.
If you cannot get the mortgage, you can back out from deal. Most of all real estate contract has clause that will protect buyer who cannot get the mortgage.
You need new real estate agent. He/She should be helping you, not suing you.
2006-09-27 16:57:58 · answer #7 · answered by novak-9 4 · 0⤊ 0⤋
Actually the other person is correct about the sales aggrement being based on you being able to find "suitable" financing...There is usually a definition of this in the sales agreement, however if you can not find the suitable financing you are even entitled to your deposit back. THEY CAN NOT SUE YOU. Worse case scenario is you loose your hand money.
2006-09-27 15:52:43 · answer #8 · answered by Christopher G 1 · 0⤊ 0⤋
To correctly answer this question, you need an attorney to go over the contract, and see if there are any loopholes that you can use to get out of the contract without losing your earnest deposit. Things such as cost of repair contingencies, financing deadlines, appraisals, and so forth. Good Luck!
2006-09-27 16:00:51 · answer #9 · answered by Anonymous · 0⤊ 0⤋
Yes they can. For starters they will probably not give you your deposit back. If later they have any "real damages", damages that they can prove in court, Like a deposit they lost or addition moving or storage expenses.
2006-09-27 15:53:02 · answer #10 · answered by jafnarf 3 · 0⤊ 0⤋