We made an offer on a home we LOVED - the buyer accepted the offer then found out he could not get a loan for his next house, so he backed out. We needed to move so we kept looking and found another house - more expensive, but we did not like it as much as the other. Everything has been done, aside from closing - purchase agreement, inspection, remedy request, release of financing. Scheduled to close on July 2. Just found out today that dream house is going to be sold - couple separating. Can we, without being sued, switch and purchase the house we initially wanted? Iowa real estate laws.
2007-06-06 13:58:41 · 8 answers · asked by Anonymous in Business & Finance ➔ Renting & Real Estate
have a real estate agent - she is the agent for the dream house as well, but works for the same company as the realtor of the house we are currently in the process of buying. She is also the realtor for our surrent house.
2007-06-06 14:09:37 · update #1
Not having read the sales contract, it's difficult to assess your options and alternatives. However, the bottom line is that if you back out of the contract, there is no way to completely insulate yourself from legal action. There is a chance that the seller of the "non-dream" house may not take any action or may simply take the earnest money and go quietly -- a small price to pay for your dream house. But as someone previously mentioned, you could also be sued for specific performance meaning the court could force you to follow through with your contract to buy the non-dream house.
If you are using an attorney for the closing, have him/her contact the seller's representation to inquire about "killing the contract" on the non-dream house and discuss what it would take to get out of the contract. The seller may flatly say "no" and you may be on the hook; conversely, they may be willing to negotiate terms for canceling the contract (warning -- this could get pricey). If you don't have an attorney, you could approach the seller yourself (ever so delicately, of course); but don't use your real estate agent, especially since there is clearly a conflict of interest.
2007-06-06 15:32:21 · answer #1 · answered by mindthetwine 2 · 0⤊ 0⤋
That's going to depend on the contract. If you didn't write in a weasel clause, you might have a hard time backing out without a penalty. Definitely call a realtor, and possibly a real estate attorney.
2007-06-06 14:03:51 · answer #2 · answered by Anonymous · 0⤊ 0⤋
sad news, likely not.the real estate company will likely not let you out of the deal. if they do, and the 2nd houses owner does, and the first houses owner goes for it, i guess? but speak to your lawyer. the suit is the issue and someone would have to initiate it, either the owner of house 2 or the realtors brokerage who wants to get paid. ( i am a realtor, but in canada and thats how it would work here) good luck xx
2007-06-06 14:14:27 · answer #3 · answered by beigeblonde1 1 · 0⤊ 0⤋
You are attempting to back out of a contingency free offer to purchase. You can be sued for specific performance of the contract, plus monetary damages from the seller you wish to jilt. Do not take this lightly. If this seller has incurred other expenses based upon your signed offer to purchase, you can be held liable for these costs, should the seller engage litigation.
2007-06-06 14:53:54 · answer #4 · answered by acermill 7 · 0⤊ 0⤋
Visit with a real estate lawyer... Take copies of your contract with you... There is most likely some little thing that he can find for you ... You most likely will loose your earnest money .. but that is a small price to pay to be able to get your dream home..
2007-06-06 16:19:47 · answer #5 · answered by outdoorgirl_72 2 · 0⤊ 0⤋
Why aren't you communicating this with your Realtor. They should be able to figure out what you can and cannot do. They are closer to the transaction(s) than anyone on here. Do you not trust them?
2007-06-06 22:19:18 · answer #6 · answered by Jason Powell AZ Realtor 1 · 0⤊ 0⤋
You can always back out but at what cost. You will just lose your earnest money. I dont think there is a chance you will get back your earnest money this far in. But you never know.
I would just look at what you put up for earnest money and knew you just burned that money and move on. Check the risk vs. reward. If you can afford to burn that earnest money go ahead. I see it all the time. Just say im backing out of my contract you can have my earnest money. Thats the definition of Earnest money.
2007-06-06 14:06:00 · answer #7 · answered by financing_loans 6 · 0⤊ 1⤋
Do you have a Realtor? Anytime you buy a house you need a Realtor. (This is why)
Contact the parties involved, see what they say.
2007-06-06 14:02:26 · answer #8 · answered by Anonymous · 0⤊ 2⤋