SHOP PRODUCTS
Houzz Logo Print
funkill

H-E-L-P ... apprehension about buyer & non-refundable deposit

funkill
15 years ago

I the Guardian for my mom, who's home is on the market. She is *out of money* and it may fall to foreclosure. The listing price is reasonable ($40K under appraisal) and just a bit over the outstanding mortgage. I received a contract 10 days ago at 10% less than list, closing in 2 weeks, contingencies on financing and inspection. The guardianship judge ordered for court review/approval of all contract(s) - an $800 process - and this one was approved. Inspection was put in work (but don't know if it was actually complete). In the mean time, buyer found that HOA doesn't allow for rental of unit w/i first year of ownership and retracted offer. Now, I don't belive this was appropriate - since it wasn't any contingency of ability to rent - but I'm not pursuing it ... I've already spent $800 getting the court review of the contract and approval to accept.

However, I now received another offer. This is from a co-worker who resides outside the US. This couple has been working towards an offer for several weeks and with much difficulty. First, they have much private/privileged information (months ago - when I was only considering selling the home). After placing on the market, they revealed their interst in purchase and I suggested they contact my listing REA (a valued mentor of mine). They were dissatisfied with the REA (and vice-versa) and sent numerous inflamatory messages to both the REA and me. They then sought other REA representation. That new REA called the listing agent and said they would not represent the oversea's buyer either. Long story shortened ... they then chose another REA in the same office as the listing agent for their representation. They placed a similar offer to the original with 60 days to close and a cash deal (and inclusion of various family heirloom antiques - which I previously said I would not include).

My concerns are this: the buyers have sent messages to both me and the RE suggesting they will file suit for misrepresentation (as I did not receive their first offer in a tmely manner --- which is irrelevant as I had already accepted the original offer). My REA has surmised that this deal is a disaster waiting to happen. I know these folks have threatened filing suit against other contractors, etc in the past. They are vilotile and demanding folks which I actally FEAR entering any contract with. But, as a guardian overseeing a property that will soon fall into foreclosure, I should entertain this offer.

I am wondering how to include a $600 - $800 non-refundable deposit made (that will be applied to sale if proceeds to closing). This will cover two things: (1) cost to attain court approval of the new "AS-IS" contract and (2) cost to have RE attorney review contract to verify I'm covered in case the buyers want to file suit in the future. You see, they are not able to view the property in advance and it is in very poor shape. I fear that they will either back out after inspection or - during remodel find more problems and try to sue me!

Again - I have had years of dealing with this buyer and know that there is going to be much cost, and stress associated with the deal (and potentially legal issues to consider)... and, in finality, there will be

Comments (19)