Did the seller perform exactly as per the contract? Did you? In california there are certain time periods I.E. 14 days to review led based paints, etc. etc. so if a seller forgets to give you a disclosure then you have the time the contract gives to do your due dilligence. Also to the best of my knowledge unless the contract says on or before and you are close it is pretty hard for a seller to back out. On the other hand it is much easier for a buyer to back out.
I am not a lawyer so who knows maybe people have been blowing smoke up my A**.
I am supposed to be buying a place as FSBO. Settlement was down on A/S for 7/1. As time got closer and knew mortgage would not be done by then, I called multiple times to see if could push it off a couple weeks. The seller never called me back. Now, finally calls and says he’s decided to keep the place for himself. He says that since didn’t settle by 7/1, agreement is null and void. In the meantime, there are fees out there such as appraisal and title search that will have to be paid. I’m not wanting to be responsible for those fees and also I really still want to buy the place.
What are your thoughts? Can the seller get out that easy?
Well, looks like you’re SOL. Yes they can get out that easy. TIME IS OF THE ESSENCE in a conract. That means, Don’t be late, or you lose. You should have written in the contract that it is contingent on obtaining financing. Or you could have provided for extensions by paying extra. The time to do this is when the contract is written, not when default is looming.
Well, there actually is a mortgage contingency. The contingency date was June 22nd. When I read it, it seems like it can go either way. It says “buyer and seller agree to extend the mortgage commitment date until seller terminates this agreement in writing by notice to the buyer”. But then down a couple more, it says if the mortgage loan is not obtained for settlement, all deposit monies paid will be returned to buyer and buyer is responsible for other fees they came across.
Not sure which way it should go.
I am not an attorney but it seems to me that when you say “buyer and seller agree to extend the mortgage commitment date until seller terminates this agreement in writing by notice to the buyer”.
You can spend a few hundred, maybe thousand, to get his attention, try to force the contract and have his attorney notice that provision and have him send you a written cancellation =or- just bite the bullet and pass now.
Further, “it says if the mortgage loan is not obtained for settlement, all deposit monies paid will be returned to buyer and buyer is responsible for other fees they came across.”
I’d just ask for my deposit back, pay the fees and move on…otherwise, in my opinbion the only one who will profit with be the attorneys.
You may have to run the whole thing past a knowledgeable local attorney to get to the bottom of it. It looks like there is a fair amount of doublespeak there. It looks like you may still be in the ballpark since he didn’t terminate in writing. It does look like you should get your earnest money back though. Any FEES you paid are another story. If it were me, and I REALLY wanted the place, I would explore enforcing that extension clause. Good luck with it.