Basically whats happened it that a house that my wife fell in love with came on the market, so we had a look & she loved it even more. I wasnt sure as it needs gutting & I dont want to have to go through all that again as we did that in our current house.
Anyways we put our house on the market & someone put an offer in on it & we accepted it. I know for a fact that they still have to get thier mortgage sorted & finanlised (so in my opinion they are not ready to proceed). The house we wanted to buy, we have found out that it needs re-wiring throughout & this is going to cost an extra £4000.00 on top of the £5000.00 that is required to 'do it up'.
So we decided to back out of the deal as we cant afford it, pure & simple, but when I asked my agent if we could now reject the bid on our house, they said we are still liable for the projected commision which is £2500 inc VAT.
Can anyone advise as to when someone becomes ready, willing & able to proceed?
Massive thanks
2007-10-23 03:02:47 · 6 answers · asked by Puzzled Santa 2 in Business & Finance ➔ Renting & Real Estate
Every state is different.
Once you have signed their offer, you are now under contract. The buyers should have been beginning the proceedings of obtaining their financing. This isn't a process you're involved in, so you wouldn't really know what was being done. Read your sales contract. In the State of Colorado, if you had signed a selling contract, then chose to cancel it, you would be in default. Depending on the method of recourse the buyer's chose, you could be subject to damages, specific performance (forced to sell), or both!!!
Two words of advice:
1. Next time, if you aren't sure you are really going to sell your home, put in what's called a 72 hour kick out clause. Ask your Realtor.
2. If you really are going to default on your contract, CALL AN ATTORNEY now to protect yourself from future litigation.
Best of luck
p.s. And yes, the listing broker can sue for default and commission, too
2007-10-23 03:21:15 · answer #1 · answered by sweetsum691 5 · 0⤊ 1⤋
Your problem with deciding to back out of the house YOU wanted is not the problem of the buyer wanting to buy your house. They put an offer in on your house in good faith and are showing they are "ready, willing and able" to buy. You can't just cancel a deal. You acted without due diligence in your own negotiations and put yourself out there. Since it appears you are not in the US and I am not an attorney, I cannot give you legal advice. You have created a mess that could have been avoided with good counsel up front. You could have put a contingency on the house you were looking at to meet criteria before you agreed to buy. You may be liable to pay the agent for bringing a buyer to your house.... depends on the laws and the contracts.... Always always always work with good counsel. The days of doing it yourself have caused massive problems everywhere and are evident with the people in trouble.
2007-10-23 04:37:16 · answer #2 · answered by dianaparisian 4 · 0⤊ 0⤋
When i was trying to buy a house i was unable to put in a valid offer as i did not have my mortgage arranged in "principle" that means i can have the money as long as the lender approves the home. The seller can accept that offer on the basis that if another offer comes in with thier mortgage approved in "principle" i would loose out (fair enough) that meant i was not ready and willing to move as not got the requirements.
The agent can only charge you thier percentage once a property has been sold and as they took on an offer from some one that had not got thier mortgage arranged they cannot come on to you for this money.
Check your documents that you would have signed to instruct the estate agents to act on your behalf. NO SALE NO FEE!!!
2007-10-23 03:20:54 · answer #3 · answered by Les T 3 · 0⤊ 1⤋
Assuming that your prospective buyer actually qualifies for a mortgage, they meet the test. You have to wait for the approval or denial of their mortgage. If you pull out prior to that, it will be presumed that the buyer was ready, willing, and able to buy and you will owe the commission to your agent.
If you have gone to exchange of contracts, the buyer can force you to proceed with the sale and of course the estate agent gets his commission.
2007-10-23 03:23:22 · answer #4 · answered by Bostonian In MO 7 · 1⤊ 1⤋
"Ready, willing and able to proceed" has nothing to do with it.
Your agent is trying it on. Tell them they get the money only when the deal is completed - or better still change agents. I assume you have a solicitor for the transaction, get them to deal with it.
2007-10-23 03:08:08 · answer #5 · answered by Harry Callaghan 4 · 1⤊ 2⤋
as i'm aware they only get the commission if they sell it, which means you have the money from the sale, which you haven't so tell them where to go.
2007-10-23 03:12:10 · answer #6 · answered by Anonymous · 1⤊ 3⤋