Posted by Jack on May 02, 2007 at 17:11:39:
You are a tough guy BTI.
Seller wants out of contract - Posted by Brian_wa
Posted by Brian_wa on April 28, 2007 at 21:08:44:
I just signed a P&S agreement with a couple who currently are in divorce. They were so eager to sign when I met with them. Well, about 2 hours after signing, the wife called and wanted to rescind the P&S.
My suspicion is that they have found someone who is willing to pay more. I told the lady that I would be more than willing to cancel the agreement. However, I’d like for her to give me the first right of refusal. Basically if she decides to sell the house in the future, that I have the right to match whatever offer someone else gives her. She would not agree to do this.
What do you think I should do?
Brian
Re: Seller wants out of contract - Posted by FL RICH
Posted by FL RICH on April 30, 2007 at 06:47:19:
Brian,
If they called you within 2 hrs. of the contract to cancel, you need to find out why. If they honestly want out of your contract, it’s best to let them go. Depending on your state, most homeowners have the right to cancel a contract LEGALLY as long as it’s within the first few days.
If this went to court, the judge would most certainly side with the homeowner. Especially because the called you within such a short span of time to cancel. Also, don’t forget that you’re the “Big Bad Investor Guy” that “steals houses from old ladies”…
Just as a side note, to ensure that homeowners don’t try to go around you and sell to the first guy with a better offer, I’d recommend placing a “Memorandum of Agreement” on file at your local recording office. Don’t record the contract itself, a Memorandum of agreement is simply a document that alerts any title company that you have an equitable interest in the property, and to contact you prior to moving forward with any change to the title.
Rich Urban
Re: Seller wants out of contract - Posted by Kristine-CA
Posted by Kristine-CA on April 29, 2007 at 01:08:02:
Is there anyway you can speak to them and find out what it is that
made them cancel? If it were me, I’d try to (gently) flush out if they
have another offer; and then let them know that their contract is
binding but sometimes there are things that be can be done
(financially) to cancel your contract.
I’m assuming you believe your offer of first right of refusal is a
compromise. However, I’m sure it sounds like a threat to them.
If that doesn’t work, then…I’d let it go. People in divorce have lots of
fluctuating things going on–including really going through with a
divorce and really separating. Two hours after signing? Even though
I’m sure your contract doesn’t have any period outlined in which they
can cancel, the standard realtor board contracts that I’ve seen do.
What is customary should be considered in these kinds of situations I
think. Because that’s what their lawyers (and perhaps judges) will be
considering.
Please let us know how it works out. Kristine
Re: Seller wants out of contract - Posted by jason sc
Posted by jason sc on April 29, 2007 at 24:55:45:
Brian
I hate a passing up on a deal. But I think that if they called me back after only 2 hours - I would let them out of the contract.
You could get a lawyer and try to make them sell you the house - but it may not be worth it.
When you figure in your time, money, aggravation etc - you will be better off to move on
jason sc
www.jasonmorrisrealestate.com
Re: Seller wants out of contract - Posted by BTI
Posted by BTI on April 30, 2007 at 13:02:56:
Rich
I’ve done business in 14 states and not a single one ever had a law that allowed the seller to cancel anything legally even if if were 10 minutes later, especially a divorce situation.
Could you enlighten us an give us just one state and cite the statute. To many people apply consumer protection laws designed for door to door sales, etc. which don’t apply to a real estate transaction.
As for Brian’s problem, divorce is a very emotional time and I would have told them if you want me to cancel, I need to sit down with both of you and discuss the problem. We have a legally binding contract but I’m not an ogre and I’m willing to work things out with the both of you and the best solution might be to mutually cancel the agreement. When is a good time for us to sit down together somewhere and have a cup of coffee and maybe a little bit to eat, on me, and chat. Meet at a neutral place, like a coffee shop.
I’ve released sellers from their contracts, but I’ve always had clauses that protected me in case an other party had interfered, and made it a point to sue the seller and the other party for tortuous interference (3 times, no losses).
BTI