Home, Land, Property Buying and Selling - Buyers Backed OUT
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arobbins61
10-02-08, 07:57 PM
We accepted an offer on our home with a contingency for sale of the buyers home on or before October 1, 2008. (their agent actually has October 1, 2009 in the contract.)
On September 27, 2008 they signed a form stating they were removing their offer and no longer interested in purchasing our home.
There was no reason listed on the form but, in a seperate email, their agent sent to our agent it was noted that they are now afraid of the market.
Are we entitled to keep the ernest money deposit for thier failure to complete the contract, in either 2008 or 2009???
Thanks! arobbins61
On September 27, 2008 they signed a form stating they were removing their offer and no longer interested in purchasing our home.
There was no reason listed on the form but, in a seperate email, their agent sent to our agent it was noted that they are now afraid of the market.
Are we entitled to keep the ernest money deposit for thier failure to complete the contract, in either 2008 or 2009???
Thanks! arobbins61
Speedwrench
10-02-08, 08:13 PM
yes you are, however they could have just waited a few days and been ok, so i probably wouldn't , their agent however might be liable to pay them back if he put the wrong date on the contract.
life begins when the kids leave home and the dog dies
life begins when the kids leave home and the dog dies
Melissa_E
10-04-08, 04:40 PM
I agree with the previous poster, you should be entitled to it. I'm in the middle of buying a home and that was the way that our realtor explained it to us. They broke the contract without due cause, such as not meeting the contingency, problems at inspection, etc...
rjordan392
10-05-08, 06:27 AM
Real estate laws in the jurisdiction will prevail. But it appears Speedwrench is correct. In this case, I would say that the buyers agent is liable for this mistake. I smell a suit.
michaelshortt
10-05-08, 09:55 AM
The contract should guide you if you should be able to keep the earnest money. In the state of Washington if both parties do not agree, the earnest money will be sent to interplea (court) and it will be decided by the court. If the earnest money is not considerable the court fees and lawers can eat it up quick.
cstlnc
10-05-08, 02:19 PM
If the buyers of your home have been unable to sell their home which I would think that by september 27th they should have a pretty good idea that they aren't going to be able to make the timeline of October 1st in the contract they are probabley doing you a favor so that you can get your home back fully on the market. Obviously they can't buy yours unless they can sell theirs.... right?
michaelshortt
10-05-08, 02:26 PM
Great point cstinc. ;). Sellers need to go on and sell their home.
yuppy
12-09-08, 06:38 PM
i believe that is the entire purpose of earnest money, if you back out wihtout cause, you lose the money. you should be able to keep it.
mdtaylor
12-11-08, 04:32 AM
We accepted an offer on our home with a contingency for sale of the buyers home on or before October 1, 2008. (their agent actually has October 1, 2009 in the contract.)
This means that the purchaser will purchase your home once his sells.
On September 27, 2008 they signed a form stating they were removing their offer and no longer interested in purchasing our home.
Contract is still effective. Did the purchaser sell his home? No.
There was no reason listed on the form but, in a seperate email, their agent sent to our agent it was noted that they are now afraid of the market.
No reason is really necessary since only the contract language is valid.
Are we entitled to keep the ernest money deposit for thier failure to complete the contract, in either 2008 or 2009???
No. The purchaser failed to sell his home which was the contingency of the contract. Only if he had sold his home and not purchased yours would you be entitled to keep the earnest money.
The date error on the contract might be the cloud on the whole deal. If the purchaser does not sell his home by October 1, 2009 you will still have to give the money back then, and you could not earn interest on it during the year.
Of course, specific state laws on this prevail....
This means that the purchaser will purchase your home once his sells.
On September 27, 2008 they signed a form stating they were removing their offer and no longer interested in purchasing our home.
Contract is still effective. Did the purchaser sell his home? No.
There was no reason listed on the form but, in a seperate email, their agent sent to our agent it was noted that they are now afraid of the market.
No reason is really necessary since only the contract language is valid.
Are we entitled to keep the ernest money deposit for thier failure to complete the contract, in either 2008 or 2009???
No. The purchaser failed to sell his home which was the contingency of the contract. Only if he had sold his home and not purchased yours would you be entitled to keep the earnest money.
The date error on the contract might be the cloud on the whole deal. If the purchaser does not sell his home by October 1, 2009 you will still have to give the money back then, and you could not earn interest on it during the year.
Of course, specific state laws on this prevail....