Posted by Ed Garcia on January 24, 2001 at 11:56:08:
Jim,
Thank you for your input. I was having FirstTimeInvestor call me to go over his contract with him, and then I was going to advise him accordingly. I wasn’t thinking that, that wasn’t much help for others on this board that may be in the same predicament.
Your points are well taken. On the other hand if the broker should continue to give him flack or be un-corruptive, the broker is in violation big time. I also think that the broker has recognized the fact that FirstTimeInvestor is new, and has taken advantage of that situation by not providing, sharing, updating, information that is normally provided to a buyer. That’s why I think FirstTimer reacted in the manner in which he did. Maybe I’m wrong Jim, but if I get involved with FirstTimeInvestor, I’ll find out where the bodies lie.
How do you go about cancelling a purchase agreement?
I had a contigency on a home inspection. After the home
inspection and all the calculations I figured that the
house is acceptable to me for $209100. The original
offer was $263000. The house was listed for
$259,9000 to $299000. The comps show clean, well
maintained and in good order houses for around $265000.
They tell me the seller is an older gentleman and
had to move in with his daughter.
The house has a leaky garage and needs to be regraded
in order to prevent water from going under the house
when it rains. It is pier and post. It is a modular
home, which I didn’t know until after the offer was made.
Their are about 35 items that a contractor must repair
and about 10 safety issues. The landscaping is
terrible and has to be removed from around the house
because of infestation of termites. The house also
must be fumigated. It is in California.
The realtor/mortgage broker tells me that I can’t just
ask for a price reduction. I have to give an itemized list
of repairs. Is this true? He also will not
give me an escrow number or copies of all that I have
signed. The inspection was done on 1.12 and the offer
was made on 1.10 and the escrow is supposed to close
on 1.31. I never received documents that escrow
has opened nor do I have a signed copy of the seller’s
acceptance of the offer. Just an unprofessional
agent who doesn’t cooperate with me.
I sent a letter to the seller with the price
reduction and the info that if not accepted
by a certain date and
time, which has now passed, the
cancellation of offer based on the home
inspection. Isn’t this enough?
I consider this to be null and void because I have
not heard a response in writing from the seller as
requested. Now my realtor/mortgager broker tells me
that I went against proper protocol, I must go thru him,
and that I can’t just cancel that I have to give
him a list of repairs.
Will I lose the $1000 deposit?
I already will lose around $700 for
the inspection and the appraisal.
I am being misrepresented, info is being withheld from
me and I have no idea what is going on between the
two realtors. I am also very new to investing and
I don’t know the details about the rules and regulations.
If only I could talk directly to the seller I bet
we could come to a mutual agreement.
These matters are always controlled by the contract. You need to read your contract to determine how the contract is terminated. Any attempt to terminate that is inconsistent with the language in the contract would not be effective.
It could be for example that if you are dissatisfied with the inspection results that you are required to notify the seller in writing as to what items that need to be corrected…and give the seller the opportunity to correct those items. If the seller declines then the contract would be terminated. Whether this is the case or not would be dictated by the contract.
It could also be that it simply takes a letter to terminate based on the inspection results, such letter to be given within a specified time period. Again, the contract rules so you have to read the contract.
The earnest money should be controlled again by the contract. There should be clause(s) in there that describe what happens and when to the earnest money. Typically though if you have terminated your contract in accordance with the provisions of the contract, then you would make a written demand to escrow that your earnest money be returned. Chances are they will not release funds unless the seller agrees, or unless some period of time goes by without response from the seller. Again, the chances are high this is all in your contract.
Give Ed a call…I’m sure he will be able to help you.
Re: How to cancel purchase agreement? - Posted by Ed Garcia
Posted by Ed Garcia on January 24, 2001 at 09:44:06:
FirstTimer,
Yes, you can do as you’ve done from the standpoint of canceling the deal because the house didn’t pass your inspection. However your broker is correct about the protocol or procedures taken in a transaction. However since were talking about procedures taken in a transaction, the broker violated them as well by not giving you copies of your documentation in a timely manner, as a matter of fact, according to you the broker didn’t give you copies at all.
You don’t mention if the Realtor/Mortgage broker had your approved for a loan, Pre-approved for a loan, or in what manner financing was discussed?
FirstTimeInvestor, if you like, you can call me at my office and we can discuss the details of the deal because I have some more questions, and then I will help you make sure to get your money back.
I’m also in California, so you’re in my back yard. My number is (909) 944-0199,