Posted by John Merchant on May 01, 2005 at 10:41:16:
I’d recommend yoo have your lawyer help you terminate this defaulted contract so you don’t get sued…especially if you go ahead and sell to a 3d party first.
Can Seller Cancel Contract & Put Bk on Mkt - Posted by KL
Posted by KL on April 30, 2005 at 11:48:43:
If the purchase contract states the close of escrow date and the buyer does not close, can the seller put it back on the market? The seller already went to in for signing and the buyer backs out the day of signing.
The buyer claims the seller cannot and plan to file mediation.
The seller has done everything to negotiate with the buyer, but the buyer wants to extend the close date which was never agreed and will not be agreed to.
Re: Can Seller Cancel Contract & Put Bk on Mkt - Posted by eric
Posted by eric on May 02, 2005 at 16:03:08:
What does the contract say? Most purchase give the seller the right to unilaterally terminate the agreement if the buyer fails to close due to their own fault. You need to read the contract. If you don’t understand it, go talk to an attorney who is familiar with real estate pruchase agreements in your area.
Re: Can Seller Cancel Contract & Put Bk on Mkt - Posted by JohnBoy
Posted by JohnBoy on May 01, 2005 at 13:56:36:
Why does the buyer need to extend the closing date? How much time is he asking for? Why is the seller not willing to extend? Wouldn’t an extentsion of a little more time be better than relisting the property, waiting to find another buyer, and having to go through all this again? Is the seller looking to get a lot more money from this by relisting it again?
Generally speaking, if the buyer fails to close on time then the buyer is the one who breached the contract. The seller could sue the buyer for specific performance of the contract, but that would be more time consuming and costly than just extending the buyer more time to close. So why would the seller want to go through mediation? Doesn’t make sense.
It all comes down to the terms of the written contract. Without reading the contract no one can know who’s in breach of what or what anyone can do. You need a lawyer to look this over and determine what the best options are.
But if the only hang up here is the buyer needing a little more time to close, then why isn’t the seller willing to go along with that? Why go through all this again by having to relist the property? I could see if there is a back up buyer lined up waiting to close. But if it requires relisting and waiting for another buyer to come along and wait for another closing date all over again, then why not just extend a little more time for this buyer and get the deal closed? What else is involved here that isn’t being told?
What is the buyer’s hang up? Financing? What?
Why is the seller so bent on not extending a little time and wanting to relist again?