We are to close on this month but after looking for houses for 3 months (over 200 houses), we have not found one we like. Now we would like to remain in our house. What course of action can we take.
2007-11-12 05:55:18 · 9 answers · asked by so_yahoo 1 in Business & Finance ➔ Renting & Real Estate
Unfortunatley you may have to sell your house to the buyer.
The language of your contract will control.
Unless your attorney wrote in specific language making the sale of your house contingent on your ability to purchase another house, I doubt that you can get out of the contract to sell your house.
This is why I recommend that you always hire your own attorney to represt your interests and write the language of your contract.
A good attorney would have written language into the contract or made a counter offer to the buyer's offer that the sale of your home is contingent on your ability to find and purchase another home.
I recommend that you contact an attorney who specializes in real estate law today and have him review your contract to see if there is any language that will permit you to cancel the contract under these circumstances.
However if that language was not specifically written into the contract before you and the buyer signed the contract, I doubt that there is any language in the contract that will permit you to cancel.
The only other possibility that I can think of is that there are many other properties on the market and the market is declining.
With any luck you may be able to persuade the buyer to find another property that he likes better, probably at a better price and offer the buyer the opportunity to withdraw the contract that he has to purchase your property.
You might even consider offering to pay the buyer some money to withdraw his contract to purchase your property and find another property.
2007-11-12 06:12:01 · answer #1 · answered by Anonymous · 0⤊ 0⤋
You should speak with your agent and a Real Estate attorney about this matter. You certainly can break the contract, but you will have at least some liability. Foremost, depending on the wording of the contract, you may be forced to proceed with the sale. However, as that would require your being sued by the buyers, during which time they would have to either rent a place or delay selling their current home, it probably won't come to that. If you still plan on moving when you find a house you like, I would go through with the sale and rent a small home for 6 months while you continue your search. If you have decided that you in fact do not want to sell your home, period, inform your agent to tell the buyers, refund the earnest money and send an additional amount (say, half the amount of the earnest money ) as liquidated damages. State that by cashing the check they agree to accept it as liquidated damages in full. Then, hope they cash it. Also, expect your Realtor to ask for the full commission from you-after all, they satisfied the conditions of their listing contract and are due their earned commission.
2007-11-12 06:14:26 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Is there a "selling contingency" in the contract - whereas you must first find a home before you can sell the one your are in? If not you may have to go thru with the sale. It is possible the buyer could sue you for "specific performance" which means, essentially, you both agreed to the terms of the purchase agreement and, under contract law, you are both bound to those terms. There are certain situations where the contract could be void, voidable, or illegal - but assuming the only reason you want to break the contract is due to not finding another home, you may be bound to it.
2007-11-12 06:39:57 · answer #3 · answered by thinking-guru 4 · 0⤊ 0⤋
Your options depend the wording of your contract, specifically if you included a contingency for you not finding a different house.
If your contract didn't specifically say "I'll sell you my house only if I find another one I want to buy", the buyer has the right to expect to buy your house. He can sue you for specific performance.
If you used a real estate agent, this possibility may have been addressed in your contract, but I don't believe I've ever actually seen that. If you didn't have an agent or lawyer write the contract, I can almost guarantee this isn't in there.
2007-11-12 06:10:11 · answer #4 · answered by Debdeb 7 · 0⤊ 0⤋
Well, unless you signed a contract with the provision "we have to find a new home first" then you are expected to sell. If you don't the buyer can sue you for backing out. Keep in mind that they may have people waiting to get in the home they are leaving and you will put them in a bind also.
2007-11-12 06:31:19 · answer #5 · answered by VAgirl 5 · 0⤊ 0⤋
Read your sales contract that you signed. Some where in there is a penalty. If buyer backs out they lose their earnest money deposit, if you back out you might be obligated to the buyer. Before we can give you an honest answer you need to read to see what penalties you incur because you backed out, remember you signed a legal document, the buyer could sue you for damages, especially if they sold their home.
2007-11-12 07:48:14 · answer #6 · answered by Weimaraner Mom 7 · 0⤊ 0⤋
If you decide to stay in the house, you can cancel and give the buyers back their earnest deposit.
However, it is highly unlikely, but well within their rights, that if you should decide to sell in the future, they get first dibs on buying your home at the original purchase price.
Talk to a local realtor or Real Estate Attorney for more details.
2007-11-12 06:02:04 · answer #7 · answered by thebigcheese1993 2 · 0⤊ 1⤋
What if you found the house of your dreams, made an offer, it was accepted, so you sold your house and started to pack up, only to have the buyer of your dream house change his mind? How would that work for you?
2007-11-12 05:59:34 · answer #8 · answered by monicanena 5 · 0⤊ 0⤋
What does your contract state in regards to either party cancelling the contract? What is the penalty?
2007-11-12 06:01:53 · answer #9 · answered by Squat1 5 · 0⤊ 0⤋