Posted by Natalie-VA on May 05, 2007 at 09:54:23:
Hi Dealmaker,
It happens in my area all the time. You can either give them a 48 hour FRR (first right of refusal) like you mentioned, or they can just ratify a contract with a home sale contingency. It’s very common to do the later, especially if the buyer’s house is already under contract and just needs to close.
–Natalie
Breach of contract - Posted by Nancy Johnson
Posted by Nancy Johnson on April 30, 2007 at 16:56:20:
I recently entered a contract to buy a property for my primary home with a contingency to sell my home first. It has been a month and they continued to show their home FSBO although their agent took it off the MLS when we met the requirement of providing documentation of qualifying (through underwriting). They got a better offer and called us on Saturday to tell us they were taking another offer. We informed them they’d be breaching their contract. Their agent admitted they will be breaching their contract, our mortgage broker believes they are breaching their contract.
I can file a lis pendens, although I don’t yet know how. I can hire an attorney, or I can let it go. My question is since I put down $2500 earnest money, can I require them to not only return the $2500 but also pay us $2500 to compensate for breaching the contract?
Re: Breach of contract - Posted by Natalie-VA
Posted by Natalie-VA on May 05, 2007 at 09:56:12:
I would hire an attorney to try and negotiate a settlement. It sounds like you have every right to try and enforce your agreement. I like your idea of having them return your earnest money AND buy you out of the agreement. If you have an agent involved, they should also pay your agent’s commission.
–Natalie
Re: Breach of contract - Posted by dealmaker
Posted by dealmaker on April 30, 2007 at 20:42:31:
I’m a bit puzzled. "Usually in a situation like you describe the seller requires a "24 (or 48 or 72) hour make ‘hard’ contingency. Which means they’ll continue to show the house and solicit offers. If they get an offer that’s equally acceptable YOU have that amount of time to drop your contingency on selling your old place.
A “contract” with a “contingency” is really NOT a contract.
Is that not in there?
I’ve never heard of an agent allowing a seller with a listing agreement (with a purchase contract in place) to try to FSBO their house.
Forget what the agent and the mortgage broker say, what does your ATTORNEY say?