We have an issue with the sellers wanting to raise the purchase price of the home. We were set to close at the end of last month, but got a call four days before closing saying the sellers refuse to pay their closing costs.
The purchase agreement and listing agreement expired in November and no one requested an extension because we were going to assume their loan, but found out two weeks ago we weren't approved. So we went with a conventional loan.
The only difference in the seller's closing costs between the assumption and the conventional loan is the pro-rated taxes - and we're willing to pay for those. But, the sellers want to raise the purchase price to absorb all their closing costs (they don't have any equity in the home).
Can they legally do that even though the property is still sale pending? Our realtor said that there is a clause that holds the agreements valid as long as the sale is pending. So, they can't change the price, right? If they do, we'll walk.
2007-02-02 02:47:11 · 9 answers · asked by tallwhitegirl1 2 in Business & Finance ➔ Renting & Real Estate
The purchase agreement was for either assuming their mortgage OR other means of financing. We were permitted under the purchase agreement to finance any way we wish.
2007-02-02 03:17:51 · update #1
The sale is still pending, so per our realtor who is a broker who's been in business for 14 years - there is a clause that says as long as sale is pending, the purchase agreement is valid. So, do the sellers even have a leg to stand on in trying to raise the price? The appraisal is only for $1000 more than our offer. It's a buyers market here, so there are no other bids. We shouldn't have to pay above the appraisal price - I know we can't get financing for more than what the home appraises.
2007-02-02 03:23:11 · update #2
Since you are paying the difference that the delay cost them, they have no right to request that you pay the other costs they were going to have to pay anyway.
Tell them no.
2007-02-02 03:02:40 · answer #1 · answered by BoomChikkaBoom 6 · 0⤊ 0⤋
The seller can try almost anything. What will work is not the same.
If there is a clause that is binding then take the time to read the clause (if not the full document).
The broker likely knows their business. That said you can ask a lawyer to offer an opinion. If the lawyer agrees you can also have the lawyer send a letter explaining to the seller that they need to perform or you can sue for specific performance (forcing the seller to complete the deal even if they did not want to do so).
Of you can back out. If they have no other offers they can keep the house and continue to make payments.
Maybe you should counter with a lower offer. You could play hardball or you just continue to honor your commitment.
To recap, start by reading the contract. It is normally worded so you can understand.
There is a real estate legal forum on the site referenced below. At least one of the moderators is a practicing lawyer who has published a number of articles and books on RE law.
2007-02-02 03:57:29 · answer #2 · answered by Anonymous · 0⤊ 0⤋
If the purchase agreement expired you are screwed. If the contract was still valid it would not be legal to do what they are doing now because you all signed an legal and binding contract. You don't have that contract anymore. If you have a real estate agent helping you, they suck. If not you should have used one. Why would let a contract expire? That is the piece of paper that protects you from things like this. The good news is that since the contract expired you can get out of the deal now. If you paid them any money up front you are out the money if you choose not to pay the closing costs yourself and go through with the sale. Your realtor is an idiot. Go get a new experienced realtor NOW. Yours has no idea what they are doing!!!!!
2007-02-02 02:55:10 · answer #3 · answered by Anonymous · 1⤊ 0⤋
Answer is yes because no contract is in force according to what your saying,.....
All of the above answer are very good ones, including your not containing enough specifics. and including that they have no equity. Which is a state to be understood they are not making anything. By their raising the price, to help their closing cost. You are absorbing what is thousands of dollars for very few dollars a month . And helping them and you close the deal. Your not digging into your savings.
Obviously their loan was assumable but they didnt know you wouldnt qualify to assume it, what their asking is not unreasonable.
If the rise in price is not outrageous. often people overbid a few thousand to insure their offer is the accepted one. And that few thousand dollar amortized over 30 years comes out to be a few dollars more a month in their payment cost of a good dinner out on the town a month.
You could go with what their asking raise the price a even a little more and ask to be credited some money back,....huh now theres an idea. Its called creative financing.
Get the house u so obviously like and want. It sounds like their not trying to jerk you around but make the transaction feasible.
2007-02-02 03:13:15 · answer #4 · answered by jigadee 4 · 0⤊ 0⤋
There are 2 issues to do first. a million. Get pre-qualified via a financial employer. this may cost a little a sprint some funds, generally $50 or so, even though it tells the broker and the real factors brokers they do no longer seem to be dropping their time with you. 2. Get a real factors agent. The agent will run comps for you, and clarify how they adjust the sales fees to house changes interior the homes. you may supply besides the fact which you want, yet while the itemizing cost is on the factor of the unquestionably cost of the abode, and you supply $30k under the tax cost, you're possibly to tick the broker off. that is his abode, no longer in basic terms a bite of factors and broker now and returned take the supply individually. "i'm unlikely to offer the abode away!" i won't be able to help you be attentive to the way many circumstances I heard that even while the supply develop into smart. verify to comprise a time-physique for reaction once you're making an supply. 24 hours is smart here, yet your agent would be attentive to what's usual the place you reside. The websites are time-honored, and the community custom the place you reside might nicely be thoroughly distinctive from the place I stay. some places the sellers assume to pay particular remaining fees, and different places that they had be outraged in case you ask. you desire an expert in genuine factors on your city...that's the real factors agent.
2016-11-02 03:17:51 · answer #5 · answered by Anonymous · 0⤊ 0⤋
Well if the sellers are now going to have more of a cost because you had to change lenders, you should pay for it. I dont understand why this effects them since you state you offered to pay the difference. What does the fact that they have no equity have to do with anything? If they have more costs because of your loan well then i would have to say you would be paying them. I think your question is a little to vague to answer, may need more details.
Good luck
2007-02-02 02:56:29 · answer #6 · answered by frankie b 5 · 0⤊ 0⤋
Might want to consult a real estate attorney. You changed financing before the closing so the seller can walk.
2007-02-02 02:55:29 · answer #7 · answered by Paul V 6 · 0⤊ 0⤋
A signed contract is a contract. They lose. Trust your agent. If they don't close sue for non-performance. Some states have automatic triple damages awarded.
Good Luck
2007-02-02 02:53:34 · answer #8 · answered by Anonymous · 0⤊ 0⤋
if they signed a contract , I wouldn't think so
2007-02-02 02:54:54 · answer #9 · answered by ? 7 · 0⤊ 0⤋