Please Help with this situation - Posted by SanDC

Real Estate Investing
1

Posted by Ed Copp (OH) on October 20, 2003 at 20:53:22:

You are asking for specific advice on a particular contract. One that we can not see, and one that most of us are not equipped to advise on.

That said have a lawyer read your contract, and advise you. There are often ways to twist the terms used in a contract. I doubt that you intended for your acceptance of the offer to be a blank check type drain on your assets.

One thing that I have found is that folks very seldom sue for specific performance. This is a difficult matter, even if the contract is clear. I get quite amused when someone threatens to sue me. Usually they can not afford that approach. One thing is “for sure” when you threaten to sue me, I then talk only to my attorney, not yours; and “for sure” not you.

2

Please Help with this situation - Posted by SanDC

Posted by SanDC on October 20, 2003 at 20:39:13:

Does the seller have any way out in this situation?

  1. Buyer gives inspection report to Seller containing 15 things to fix.

  2. Seller gave verbal notice within 3 days
    that he will get most of the repairs fixed but for other major work, he will get estimate of repairs.

  3. On 5th day, after he gets estimate of repair
    changes his mind, no longer wants to sell the property.

  4. Buyer now says “seller has no choice but to sell”, threatens to sue for performance on two reasons: deadline passed, and item number (iii) below states seller needs to fix regardless.

Here’s how the contract reads.

============================================

  1. Home Inspection: This contract is contingent until 9pm on the 7th day after the date of ratification (Deadline) for an inspection of the property by the Purchaser, a home inspection firm and/or other qualified contractor representative at buyer’s selection and expense. Seller will have all utilities in service at the time of inspection(s). This contingency will terminate at the Deadline unless by the Deadline Buyer delivers to Seller either A or B as follows:

A. Copy of the report(s) from the inspections of the Property together with a Home Inspection Notice listing home inspection conditions or terms that Buyer requests Seller to repair, and /or stipulating a dollar credit, as allowed by Lender, to be paid at settlement by Seller toward Buyer’s charges to buy the property.

B. If Seller elects not to perform in accordance with the Home Inspection Notice or to make only part of the repairs requested, Seller shall deliver notice to Buyer of such decision within 3 days after receipt of the Home Inspection Notice.

Within 3 days after receipt of a notice from the other party, either party may:

(i) deliver notice accepting the terms contained in the other party’s notice; or
(ii) deliver notice continuing negotiations by making another offer; or
(iii) deliver notice that this Contract will become void at 9p.m. on the 3rd Day following receipt, UNLESS the recipient delivers to the other party Notice of the acceptance of the last received offer prior to the specified date and time, in which even the Contract will remain in full force and effect.

Failure of either party to respond within 3 Days after receipt of a notice from the other party will result in acceptance by both parties of the terms of the most recent notice.

Unless otherwise agreed to in writing between the parties, this clause does not release Seller from any responsibilities as set forth in the Contract paragraphs titled: PERSONAL PROPERTY, FIXTURES AND UTILITIES, EQUIPMENT, MAINTENANCE AND CONDITION; CONDITION OF PROPERTY AND POSSESSION; WELL AND SEPTIC; TERMITE INSPECTION; AND TERMS, any other property condition paragraph, or any other provisions agreed to in the Contract and any addendum, amendment, or notice.

B. Notice declaring the Contract null and void and of further legal force and effect.