Posted by Todd (AZ) on November 18, 2006 at 18:44:07:
Check with the escrow company regarding laws in your state, but
typically if there is a hold up in the clearing of title it does not give
them an out of the deal. If they have agreed to clear it, and it is just a
matter of time, you still have a valid agreement, just pending the
release of the lien. If you wish to renegotiate the price due to the
findings of your inspection, then they can refuse to adjust price, and
then you are left with going ahead with the deal as contracted, or
letting it go.
You do not need to renegotiate a new date, as the deal will close
pending the clearance of the lis pendens. Verify all with your closing
company.
Posted by tmd 50 on November 18, 2006 at 14:59:13:
Hi, I am purchasing a fixer uper house in Bonsall california without a realtor. The offer is in escrow since 10/13.
The seller contigencies are to remove the lis pending and the tax liens which are in progress.
Our,as buyers, contigencies are onsite inspection by one of the partner and closing date by 11/31.
After the inspection, we found some extra need problem: clogged leach lines and crack weigh bearing wall in the basement. We asked for extention to further invetigate or $10K deduction. After 2 weeks waiting for their response, today we were just informed by the owner’s attorney that they have a better offer and want us to up our price. I am looking for some legal help to see what legal right do we have with our offer? Do both parties can get out of the deal if the house is not able to closed by 11/31? Thanks
Attorneys Pursuing this Case
Re: realestate sale contract - Posted by Todd (AZ)
Posted by Todd (AZ) on November 18, 2006 at 16:52:26:
I’m not an attorney, but you basically have rights depending on the
specifications of your contract. Sounds like you have an out for
anything that may turn up in the inspection. Did you sign off of it after
inspection, did you tell them it was a no-go because of what you
found? If the contract states that you have the right to pull out of the
contract if something is found during the inspection, and you have not
terminated the deal, then they are still obligated to perform per the
contract. In other words, the deal is still set to close on 11/31 at the
agreed upon terms. You need to decide if you still want the deal, or
let it go due to the things you found.
If you are tied into the deal with them, and you have not released the
deal due to the inspection, then they cannot come in and demand you
pay more because they have a better offer (if they even really do). They
are obligated to close the deal at the agreed upon price and terms.
It’s a part of doing business in real estate, you can be in escrow and a
better offer comes along, … that’s just too bad. They are obligated by
the terms of the deal they made.
Posted by tmd 50 on November 18, 2006 at 17:18:29:
We have not removed the contingency on the inspection and we were in the process of negotiating this when they received the other offer. We can remove the contingency with out any adjustment in the price and may do that. However I expect the closing date will not be met because of a lis pendance on the property and the escrow company will not be able to clear the title for this reason. This legal process of removing the expunging the lis pending is in progress. Do you know if the failure to clear the title by the closing date gives the seller an opportunity to cancel the escrow? Or are they required to accept another date and still be held to the terms of the original offer?