Can this buyer back out? Realestate.?

Question

I have had an accepted contract on my house for about thirty days. The closing date is in one week. In the contract the purchase was contingent on a home inspection, this inspection was to be performed no later than 10 days prior to closing. They just had it done today 7 days before closing. Do they have any recourse to back out now because they waited to long? All of this is in writing in my contract. If there are any major repairs there is no way I can get them done and most importantly paid for in 7 days. I do not have any "room" left to go down in price on my house either. One last thing.. in the contract we negotiated a 600 repair cap, state of TN if it helps. Please elaborate on answers, I have to be able to close on the date that we set. Thank you.

A few quick "adds" I am working with a realtor, and he is as baffled as I am, as to why they waited so long to have this done. We already have a letter stating mortgage approval, and thay DO NOT have to have an inspection as far as their mortgage is concerned.

Answer 1

After hte inspection, they will send you a list of things you need to fix or pay to have the buyers fix it. If you don't want to do the repair, you can turn it down.

At this point, if they DO back out (which they can until they sign the papers after the inspection), you still have their earnest money that they gave to you at the very start of this process.

If, at the final walk-through, they don't like the improvements, then they can tell you to get improvements you forgot to do that they wanted to have done in the contract or they won't sign the papers until you get it done.

Answer 2

When the 10 day window for inspections approached without performance, their Realtor should have done an extension of time addendum. Therefore, I do not believe they can back out for that reason. You do not state if you are working with a Realtor. You should have been advised that if the buyer does not close escrow by the contract date, the contract is no longer valid. At that point your Realtor can ask for an extension of time addendum for contractual closings. Call your Realtor and ask him/her to make sure the buyers loan is in order at this point the buyers docs should be in from their lender and funding conditions are met. With only one week to close everything should be in order save for a few minor details.

One more thing, if the deal does fall apart for any reason other than contractual items, you can try to keep the ernest money deposit. Good Luck.

Answer 3

If the buyer missed their opportunity to inspect and request repair based upon the original contract they can't use this excuse for backing out of the deal. That is not to say they still can't kill the deal, they just can't use the inspection as valid circumstance. If you aren't working with a Realtor, I highly suggest you make sure the financing is approved as this is the most common place a deal breaks down OR has to be extended to a later closing date. There are no sure things in real estate.

Answer 4

Don't panic before you see the inspection report. Depends on what come out of the inspection you can take it from there. Is there anything major wrong with the property the buyer would be concerned about you might be able to talk to them, telling them that actually they did the inspection to late but that you are willing to give a credit at closing towards the repair. Then you don't have to do anything up front and don't have to pay for it up front either. They buyer will get a credit at closing and can take care about the probably repair by himself - the good for the buyer, he knows it is done to his satisfaction, since he is able to supervise.
Since the buyer waited to long to do the inspection he might be more than happy that you help him with the repair costs and you don't have to pay the whole amount by yourself.
At that point of time to enter in a fight or law suit against the buyer will not help you or the buyer. I am sure you can work it out with your agent, their agent and the buyer.
Once again, don't panic, there is always a way to get things done.

Answer 5

Your Realtor needs to do his job and represent you, FIRMLY.

The buyer is in clear violation of the contract...when they missed the inspection date, they VOIDED their right to obtain one.

You need to get the real estate attorney that you have a good relationship with and send business to (ie. free service), to send the buyers a certified letter stating that they are in violation and repairs will NOT be made and if they back out of the contract you will sue for specific performance.

DO NOT negotiate any repairs at this point.

This is when you will know what kind of Realtor you have.

Answer 6

Inspections that indicate a need for major repairs ,
Usually result in a price adjustment ,
Not the seller doing the work .
Many buyers would not trust the sellers selection of contractors or even worse , the seller playing a DIY guy .
The seller can back out but I believe they may forfeit the deposit .

Nothing is set in stone until the close of escrow .
Anything can happen , hence the proverb ,
" Do Not count your chickens until they hatch " .

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Answer 7

Well I don't know how it works in TN, But in NJ as long as you have a attorney then you can pull out of the deal at the closing table or any time before that. Call a attorney if you haven't already done so and see what the peramiters are in your state. Good Luck!

Answer 8

i would wait and see what the inspection shows. if there is no big problems then i would not worry about it. but if there are a lot of problems then i would contact a real estate lawyer then can help you because they did violate the contract by not performing it by the allotted time.