We have signed contract to purchase a home from an individual; They are having trouble closing on their new home and are still living in the home we have signed to purchase. If we pay the sum total in full, can they back out of the sale or refuse to take the payment? Can we pay in full and tell them to get OUT? Last I knew a signed contract upheld its own and pretty much sealed the deal; is their any legal loopholes to give them an opt out?
2007-06-24 15:04:01 · 9 answers · asked by Justme 3 in Business & Finance ➔ Renting & Real Estate
They can not back out, if you both have signed and accepted the terms of the sale unless they put a contigent clause in saying that it all depended on them closingon the new home. Otherwise they have sold you the home and they must move out of the home on the agreed date, otherwise they owe rent for any days that they remain in the home. The rent will be on your terms.
2007-06-24 15:13:30 · answer #1 · answered by 2Cute2B4Got 7 · 1⤊ 0⤋
I would think that unless there is some specific clause in the contract, such as them being unable to close on the new house, that the contract is "official" as it were and they can't back out unless they'd like a breech of contract suit against them.
If you've bought the house then it's yours. They'll either have to pay you rent or stay in a hotel until they have their new home to move into. They might be able to refuse payment if there's no specific date mentioned in the contract that says you'll be buying it by "X" date. If there is a date mentioned, and you have the money ready by then, then I assume they'd have to accept it.
Good luck!
2007-06-24 22:10:13 · answer #2 · answered by Digital Haruspex 5 · 1⤊ 0⤋
Signing a contract is a part of buisiness ethics. To back out from the agreement means you are causing loss and inconvenience to the other party. Try for a compromise. Otherwise if the other party file a suit you will have to compensate. Local rules also play an important part. Consult with an advocate.
2007-06-24 22:20:40 · answer #3 · answered by Joymash 6 · 0⤊ 0⤋
Yes and no.
It depends on what was stated in the contract. Was it in the contract that they would only sell the home to you upon successful closing on the new home? If so, then no.
As I say to everyone who has a real estate contract question. I hope you have a Realtor who can go through the contract with a fine toothed comb.
2007-06-24 22:11:26 · answer #4 · answered by Lainie L 3 · 1⤊ 0⤋
most contract of sale will have an out for both parties. Since you are dealing with the seller needing to find a qualifying home, and then financing........it is much like your clauses where your outs are
*satisfactory inspection
*Satisfactory appraisal
*There are no issues on the disclosure
*ability to secure a mortgage
your seller most likely has similar clauses since they need to find a place of their own, there is most likely a contingency to them finding funding and their own home.
Please read your contract. If it confuses you, consult your realtor to translate...........and ALWAYS have a lawyer on retainer to review and advise on ALL contracts before signing.
2007-06-24 22:23:18 · answer #5 · answered by Jeffrey F 6 · 0⤊ 0⤋
You cannot FORCE them to sell their property to you. You can, however, sue for specific performance of the contract which both parties signed.
If the other party refuses to show up for a scheduled closing, there is nothing you can do to drag them there and force their signatures to the closing.
Legal action will be required on your part. Yes, they are in breach of contract, but it's going to take expense and time on your part to get them to comply. Seek the advice of a real estate attorney to represent your interests.
2007-06-24 22:10:12 · answer #6 · answered by acermill 7 · 1⤊ 0⤋
every contract is different and has different terms. what ever was agreed upon on the contract is what the law will go by. any thing verbal does not count. it has to be written in the contract. ask your agent, if they breached the contract. if they did. you win.
2007-06-24 22:08:26 · answer #7 · answered by beach_babe971 2 · 1⤊ 0⤋
Have your lawyer look at the contract, but usually no.
2007-06-24 22:30:38 · answer #8 · answered by AE N 5 · 0⤊ 0⤋
yes he can just tell the seller ur not intrested
2007-06-24 22:11:45 · answer #9 · answered by Anonymous · 0⤊ 1⤋