The buyer does not know the house is a short sale until aproaching the closing date the buyer found out the house can not close on time or can not close. Who should pay the cost the buyer already spent, such as inspection? Shouldn't the agency or the seller tell the buyer before the contract?
2007-10-17 04:51:49 · 3 answers · asked by shurong y 1 in Business & Finance ➔ Renting & Real Estate
The buyer doesnot know the house is a short sale, and it is not in the contract. The seller wants the bank to pay the shortage, because of that the seller request the extension of the closing date. The buyer already spent money in this house, such as inspection, mortgage, loan, lawer fee, etc. Who should pay all those fees, if the house can't close? Also, Is this leagal the buyer was not notified by the seller and the listing agent? Until the last minute the buyer was notified that the house cann't close on time due to the buyer can't come out the closing cost. information until the last minute
2007-10-17 07:34:06 · update #1
The contract will provide the remedies for a party who breaches. If the seller does not sell for the contract price by the closing date, the seller is in breach. Unfortunately, most contracts provide the the remedy for seller breach is for the buyer to get their deposit back. Otherwise you could seek your actual damages, such as inspection costs.
Beware of engaging in any under-the - table payments to the seller in a short sale situation. If the bank being short paid finds out, they may refuse to issue a satisfaction of the mortgage!
2007-10-17 08:27:09 · answer #1 · answered by attorney_johnson 3 · 0⤊ 0⤋
You're not entirely making sense. When you made an offer on the house and it was accepted by the seller, the closing date was agreed upon. It was there in black and white. When a house is listed for sale, any special conditions are generally spelled out, but the contract between buyer and seller controls everything. Generally the contract says the cost of inspection is a buyer's choice and a buyer's expense. It's a good investment to have a home inspection. Look at the contract. If there is a problem with closing on time it may have arrangements in there, or penalties. IF you can't close at ALL, you may lose your earnest money. IF you can't obtain a mortgage, you have to notify seller within a set time period. Do you have an attorney?.
2007-10-17 05:04:37 · answer #2 · answered by chatsplas 7 · 0⤊ 0⤋
The seller and the seller's agent are not required to disclose the financial status of the seller.
Extending the closing date is not unusual.
If the house cannot close, you will have to file action against the seller to recoup your losses. The agency is not liable for your expenditures.
I know you don't feel you have been dealt with fairly because all this is coming at you last minute, but these things happen. You can either agree to extend and hope it can close, or walk away and pursue legal remedies.
Considering the seller is already in financial trouble, I am questioning how successful any litigation would be.
2007-10-17 08:30:37 · answer #3 · answered by godged 7 · 0⤊ 0⤋