If I am in contract to purchase a home and I was unsuccessful in getting the financing approved based on the contingency clause to buy their home without the sale of our home. I request a release from the contract and now they want to sue. Do they have a case?
2007-02-09 11:10:22 · 12 answers · asked by Snoopy 1 in Business & Finance ➔ Renting & Real Estate
There is always a standard clause in all home offer contracts, that financing will be obtained a t a certain rate within a certain time, and if you cannot obtain financing and can prove it with a denial letter from the bank or mortgage company you applied to, you are off the hook. Nobody can sue you for buyer's remorse though they would like to, but wont work in court. Study your offer contract properly and you will see the clause. A real estate lawyer would charge about $200 for this advice and you just got it for free.
2007-02-09 11:18:27 · answer #1 · answered by Akbar B 6 · 1⤊ 0⤋
I am not an attorney nor an accountant, but here's my view. It appears to me that the key question is: Was your offer to buy the house based on your obtaining financing? In other words is that written into the contract which is pretty normal. Were you represented by a Real Estate Agent? Talk to them. If the financing answer is yes, then it would seem to me that you are covered as your financing did not come through. However, definitely mail a letter Return Receipt Requested stating that your financing is not available and you are unable to proceed. I would suggest that you do this as soon as possible. If you were turned down in writing enclose a copy. If not, I would suggest that you get some legal help. Call several lawyers and discuss it with them until you find the person that you are most comfortable with. If you have the money, hire him or her. If not, find someone who will write an Opinion letter for you, usually this costs about $75. - $100. If you think you have a case, sue them first which makes you the Plaintiff, that way their lawsuit can only be a Cross-File. You can also go to Legal Aide for help. Good Luck!
2007-02-09 11:34:50 · answer #2 · answered by Valerie 2 · 0⤊ 0⤋
If the contingency was spelled out and you have made a good faith effort to sell you home at a reasonable price by listing with a real estate agent they do not have a case. If you tried to sell it yourself and don't have any evidence to support your efforts or your asking price was too high then they may have a case. With these types of contingency clauses it is best if only one realty company is involved. If they get serious seek professional advice.
Asking for a release is a trigger -- The real contingency is the financing which should be part of any real estate contract.
2007-02-09 12:03:42 · answer #3 · answered by pilot 5 · 0⤊ 0⤋
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2016-05-24 18:32:48 · answer #4 · answered by Johnna 4 · 0⤊ 0⤋
Yes. But a good lawyer or just a gut level conversation between yourself and the sellers should solve this dilemma with alternative dispute resolution. A lawsuit would be a distraction to the seller as much as you. Unfortunately, this is all about money on their part and you signed a contract that was not weighted evenly. Judge Judy would probably let you off of the hook and shame the sellers. The sellers should know things can run afoul. It sounds like they are desperate when they threaten a lawsuit. It also sounds like they might be rather unintelligent. What is more important? For them to find another buyer or pick hairs with you? I cannot give legal advice in a free forum like this so good luck!
2007-02-09 11:19:08 · answer #5 · answered by Joseph H 4 · 0⤊ 0⤋
Tell them to get a life. There is a clause in every contract that says it is contingent upon financing.
Unless you waived that right and said you were a cash buyer you will be fine.
get a letter from the lender that says you were denied the loan and send it with the release form. If you don't have a check in 48 hrs tell them you are going to sue. play their game, they are bluffing. If they have a Realtor that knows anything they will give it back.
they cant sell their home until the deposit dispute is over and you could drag it out in court for years. Are they willing to not sell their home for years just to attempt to keep your deposit? doubt it.
Remember, they do not have the right to decide who keeps it, and neither do you. if you cant agree have fun in court. Good new for you, you can move on and buy another home, bad new for them they are stuck.
you truly have the upper hand.
RE Agent,
Remax
2007-02-09 12:34:46 · answer #6 · answered by frankie b 5 · 0⤊ 1⤋
You've got a contract that says in essence "I'd like to buy your house and I'll close as soon as I get mine sold." Now YOU asked for a release? It does sound like buyer's remorse to me. When a buyer in your position still wants to buy, it's the buyer who should be begging for the seller not to cancel the contract when the contingency date arrives.
Why are you asking for a release? Did you find a different house?
2007-02-09 11:33:01 · answer #7 · answered by teran_realtor 7 · 0⤊ 0⤋
They can sue you for their fees they may have spent in trying to sell you their home and the money they lost on the home they were going to buy. I've actually seen this happen to the people my sister bought from, but they actually sued the person responsible for the loss who was the mortgage broker because he was not licensed.
2007-02-09 11:19:19 · answer #8 · answered by GirlUdontKnow 5 · 0⤊ 0⤋
depends on whether you have a contingency for loan approval, if not you will probably lose your deposit. If you're in California I may be able to help you...feel free to contact me--there may be other loan products that could still work for you...otherwise, check out any other reputable mortgage broker...(look for a member of the Association of Mortgage Brokers)...they should know what they're talking about....hopefully.
2007-02-09 11:16:09 · answer #9 · answered by singingsoprano 2 · 0⤊ 0⤋
i don't think so... can you prove that you would have bought it if you had gotten the money? I would just get your realtor to talk to the other realtor... and let them know that if you could have ... you would have... if thats not good enough... then get a lawyer... and counter sue for the mental stress, and costs of taking off work and paying for the lawyer... you may even be able to sue for the points that your credit lost when you tried to finance... you can sue for just about anything now adays...
good luck ... and screw them!
2007-02-09 11:16:38 · answer #10 · answered by teche16 3 · 0⤊ 0⤋