Buyer got cold feet one week before closing

6 years ago

We were sent the form Termination of Contract by Mutual Agreement with Release of Earnest Money.

Is there a downside to signing this? Would the realtors be able to
come after us, the sellers, for their commission they would have earned
if the sale went through.

Should we just wait the week and let the buyer be in breach of the contract?

Also, we had work done on the house for the buyer, had to pay extra for it to be expedited and now they aren't going through with the sale. The earnest money does not cover the carrying costs we've incurred or the work that has been performed. We also moved out all our belongs last weekend in anticipation of the closing.

Featured Answer

Jane Smith
Original Author

6 years ago

If I want the earnest money I have to sign it.

I spoke to an attorney, she said take the earnest money and move on.

Realtor says take the money and move on.

Work at the house did need doing. It however did not need doing urgently and could have waited to be put on the contractors regular schedule and not pushed through as a priority. I had offered the full cost of the work and additional money if the buyer did it after closing. I've basically had my life turned upside down to get the work completed in 9 business days and had to pay a premium price to get it done.

These buyers have been a pain the ass since day one. You would not believe the stuff they have pulled. I'm relieved to be rid of them but not about having to start over again for a third time. Maybe the next buyer will be sane.

Sort by:Oldest

Comments (10)

PRO
Anglophilia
6 years ago
Wow! You've had problems with this sale from the very beginning. At one point, YOU didn't want to go through with the sale.!

I think you are talking about civil action against the buyers to recoup your costs of repairs etc, but that will cost you a LOT of money and probably not net you anything.

Where has your realtor been in all of this? Did they give you any reason for backing out of the sale? Nothing has been "right" about this entire process.
cpartist
6 years ago
What does your RE agent and lawyer say at this point?
Related Discussions
Question about buyer's access before the closing
Q
Comments (12)
That is absolutely NOT ok. The agent should not have given the key to the "buyers" (that's what they are, NOT owners). Unless stated in the contract, the day of closing is the day they take possession (ie. get the key). A quick call to the agent's broker should confirm this. The agent is taking a big chance by doing this. If there is any damage to the house (done by the buyer's coming in and out as they please), they could bring that up at the final walk through and want them fixed. *I am a real estate agent, not an attorney or anything. This is personal opinion and should not be used as legal advice or guidance. (sorry, with the way the world is, this in necessary)
...See More
Buyers who don't go away after closing
Q
Comments (57)
Kellyeng, that's so funny that the neighbors would think you could do something about the landscaping! C9pilot, I agree that the sprinkler system map is a great thing to leave. When we sold a house we built we left a copy of the house plans. To give you an update, I haven't heard from the new owners in over two weeks, so I'm hoping I won't. I did talk to the man who did the inspection on their house, and they wrote him a letter asking for $4000 for repairs of things he didn't catch. I can't even imagine what they're talking about. The funniest (or saddest) part is that they never paid him for the inspection. The inspector said it's the most troubling thing that's ever happened in his 18 years of inspections.
...See More
House not closed..buyer put down bark w/out asking
Q
Comments (33)
Found out today that the buyers actually attended the homeowners association meeting last week. Not sure how they got the information on the meeting, as it certainly didn't come from us. How bizarre is that? It's a little bizarre but not necessarily a bad thing. I met a couple like this once. They were just the type of people who get very involved once they make up their minds to do something. Now for you, it sounds like they are committed to buying this house and making the deal close. The couple I knew also attended a homeowners association meeting either before they closed or soon after they closed. The funny thing was - it was the WRONG association. Talley Sue, I don't know how coop meetings work but if the HOA is small enough, some neighbors may already know that this couple are buying becca's house and allow them to stay for the meeting.
...See More
Buyer wants me to repair after closing & recorded - should I?
Q
Comments (31)
This was in the contract. The contract is for the property in its present condition with all agreed upon repairs, and even the OP believed that the damage was caused after the purchase agreement was signed. So it certainly was part of the contract as it didn't leak when the offer was made. Some states have limits on when you can hold up a closing and when you can't. So it is possible that the OP wasn't obligated to agree to the repair at all... However, the OP didn't argue the obligation, he agreed to repair and that agreement is itself a contract. An offer and acceptance for an exchange of consideration creating a mutual obligation. Let's look at that... Was there an offer to fix the leak? Yes. Was that offer accepted? Yes. Was there an exchange of consideration? Yes (the seller was relieved from any delay in closing and the buyer got a non-leaking sink). Was there mutual obligation? Yes. (the seller was obligated to fix the sink and the buyer was obligated to purchase the house on time). Did each party have capacity? Probably. Because of the statute of frauds the contract must be in writing and effectively signed by the party who enforcement is sought against or demonstrate action by the parties sufficient to overcome the statute of frauds. There are several states that have rules about repair agreements post sale, other states have nothing. I would need to know the OP's state to offer more specific information, but I can tell you certainly that my state says specifically, "Seller agrees to deliver the property to purchaser at settlement in its present physical condition, ordinary wear and tear excepted, but with such repairs and improvements as the parties otherwise agree." -------- So if it is your assertion that he could have said no as that was not in the original contract, I would agree that he could say no and they could fight over the original contract. But once the OP said yes, it did create an obligation. The enforceability of which will depend on state laws. ---------- We don't even know that the leak is one that the OP said he repaired. Can we just agree that we are talking about the same leak? I believe the OP is smart enough to handle this situation on his own if it turns out to be a different leak.
...See More
aprilneverends
6 years ago
the realtors won't go after you..no sale-no commission. they know the risky part of the job

(unless somebody please correct me if I'm mistaken)

work..as much as you're devastated now..other buyer might ask for it too, so you wasted money but not completely wasted..having house prepared is good

unless they asked you for superficial stuff, and you obliged..I truly hope they didn't, that it was repairs or something reasonable

moving out the belongings..yeah, there when it gets really really maddening. beyond just maddening.

did they give any reason?

I would think that decent people would consider how much they disconvenienced you, and wouldn't ask for earnest money.

I don'k know the rules though. That's just my personal feeling on the matter.

I'd be interested to read other answers
User
6 years ago
Yes, where *is* the realtor in all of this?

Theoretically the purpose of the earnest money is to protect you in precisely this situation. I don't see how this is a termination of the contract by "mutual agreement."

I would be interested in what our professionals here say.
pudgeder
6 years ago
You've received the advice from 2 professionals- the RE & an attorney.

Take the money and move on.
Denita
6 years ago
Agree. Since you are getting the EMD, sign it, take the money and put it back on the market. Hopefully the EMD was a decent amount.
PRO
Anglophilia
6 years ago
You hire professionals for their expertise. Take their advice and next time don't be so unsure about whether or not you want to sell this house. You have been all over the place with this sale. Perhaps that is why the buyers backed out - not sure they could count on you to close.
Jane Smith
Original Author
6 years ago
Thanks for you opinions. We signed the agreement and will get the earnest money.

Time to regroup and get the house back on the market next week once the work is completed.
apple_pie_order
6 years ago
You've done quite a bit on the house since it was first on the market. As part of the silver lining of putting it back on the market, you could consider getting new professional photos showing the house and neatly trimmed wooded lot in mid summer. Take a fresh look at the existing photos and see what you think. Good luck with the next set of buyers.

Buyer got cold feet one week before closing

Jane Smith
Original Author

Comments (10)

Anglophilia

cpartist

Related Discussions

aprilneverends

User

pudgeder

Denita

Anglophilia

Jane Smith
Original Author

apple_pie_order

COMPANY

BUSINESS SERVICES

GET HELP

CONNECT WITH US

Buyer got cold feet one week before closing

Jane SmithOriginal Author

Comments (10)

Related Discussions

Jane SmithOriginal Author

COMPANY

BUSINESS SERVICES

GET HELP

CONNECT WITH US

Jane Smith
Original Author

Jane Smith
Original Author