My house had liens that were unknown to me and now i need to back out of the agreement because i can't afford the liens. What will happen if i have to back out?
2007-01-24 06:28:33 · 9 answers · asked by Beckaboo 1 in Business & Finance ➔ Renting & Real Estate
Call your real estate agent. There are probably provisions in your contract. However, generally, any good faith money that has been put down should be returned to the buyer and that should be the end.
2007-01-24 06:33:32 · answer #1 · answered by leaptad 6 · 0⤊ 0⤋
Let your Agent know immediately.
You are in a tough spot since the Realtors have done their job, they could pursue their commissions and would win in court.
The Buyer usually won't sue on this matter, but may threaten to in an effort to get you to complete the sale. No judge will make you sell your home, it is extremely rare.
The only time I've personally come up against this situation I was the Buyer, the Seller's unknown was only $12K so while they tried to back out everyone else pushed hard and they did sell the home. In their case they needed to pay off the lien so selling the home was the best thing for them to do.
Best of luck
2007-01-24 06:36:20 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Most homes have a lien -- it's called a mortgage. That gets paid off with the proceeds from the sale.
The only way for you to back out of the deal is if there's not enough money from the sale to retire the liens and the buyer isn't willing to pay them off.
If there will be enough cash from the sale to pay off the liens, the closing agent will pay off the liens at closing. Whatever is left goes to you. You can't back out just because there won't be much left for you once the deal is closed.
If there isn't enough cash in the deal to retire the liens, the buyer will have the option of kicking in enough cash to retire them or they can cancel the deal. Let the buyer drive the bus on this one. If you try to back out the buyer can make life miserable for you, especially if there is enough cash in the deal to close the sale and retire the liens.
2007-01-24 06:41:26 · answer #3 · answered by Bostonian In MO 7 · 1⤊ 0⤋
The liens should not prevent your sale.
Talk to the title company that is doing the title search and closing. If the liens are not yours, the title company will identify the responsible parties. If the liens should have been paid off before you took title, it may be the title company's responsibility to pay them. If the liens are actually your responsibility, the title company can pay off the liens from the proceeds of the sale.
You did not indicate the nature of the liens, but if they are for real estate taxes or for labor and material for improvements on the property, the title company has experience with getting them satisfied. If they are your personal debts, for example credit card or utility bills, they still can be paid at closing.
2007-01-24 06:42:05 · answer #4 · answered by Suzianne 7 · 0⤊ 0⤋
You may lose the earnest money. There is a provision in most contracts that allows for unresolved liens to be a way out. Check with your agent. There also may be a way to pay off the liens outside of closing or refinance them and go through with it, if you want to. Talk to your lender also. How much are you talking about? If the buyer really really wants the house they may be able to wrap your expenses into their loan... pay your closing costs, which would allow you to have more money on the bottom line.
2007-01-24 06:38:46 · answer #5 · answered by Anonymous · 0⤊ 1⤋
You are a little misinformed. It really depends on what you sign with your friend's company. I know that some agents working with clients have them sign a contract in which they get paid for the work they did, even if the purchase did not close. If you did not sign anything of that sort, dont worry about it you already lost your deposit for not following through with the purchase so you already legally paid for the consequenses of backing out of a purchase contract. Now, if you did sign a contract where you would pay the broker for the time spend and work performed, I would suggest you talk to the broker and work out some deal. Negotiate but dont let them bully you and/or scare you. If they keep threatening you, you can always report them to the Federal Trade Commission www.ftc.gov and the Department of Real Estate in your state. Good luck
2016-05-24 04:49:37 · answer #6 · answered by ? 4 · 0⤊ 0⤋
You will have to return the earnest money deposited by the buyers. If you have already signed a contract, you may be screwed. Read the contract, it should state exactly what is expected if you drop out.
2007-01-24 06:33:36 · answer #7 · answered by Anonymous · 0⤊ 0⤋
Discuss this with your lawyer or the realestate agent that is selling your home it may just come down to you having to pay a small fine for paperwork and changes etc. Best to speak to your lawyer if you have one for the sale.
2007-01-24 06:34:16 · answer #8 · answered by Livinrawguy 7 · 0⤊ 0⤋
Best case your buyer says forget about it. Reality is you will probably end up in court for breech of contract and may end up paying him some damages. Check your contract and talk to your realtor.
2007-01-24 06:34:32 · answer #9 · answered by wizjp 7 · 1⤊ 0⤋