Buyer wants out of sales contract

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kgith

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I have a signed agreement of sale for my house, which is contingent upon the sale of the buyer's condo. Since the sales contract was signed, the house next door was put on the market, and the buyer now says that she wants to buy that house instead of mine.

My agent sent me a release form to sign. I told my agent that if the buyer wants me to sign a release form, the buyer will have to pay me for it.

It seems to me that the buyer has a few choices. Either she can continue marketing her condo for sale, and once sold, buy my house, or she can pay me to sign the release form, and then submit an offer for next door, or she can take her condo off the market and forget about buying anything right now.

How much money should I ask for to release her from the sales contract - if she wants to pursue buying the home next door? My sales contract was for roughly $270K and the larger house next door is listed for $300K. Many thanks.
 
If in your contract it says that if any of the parties changes their mind regarding the transaction, they should notify one another up to a certain amount of time and sign a release form, then you should do as agreed. I am sure a clause with similar language is in your contract.
 
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Buyer wants to terminate contract and buy the house next door

I just re-read my sales contract and there is no mention of a release, or a time-frame for signing a release when someone changes their mind.

My agent says that she can still terminate the agreement, but he didn't specify how. My agent has not been exactly honest with me because he is also the listing agent for the house next door, and wants his commission, regardless. But if the buyer can terminate their contract with me that easily, why not just do it? Why bother to ask me for a release?

Can she take her condo off the market for one day and say that she's given up trying to sell it, and then terminate my contract, which is contingent upon the sale of her condo? And then after contract termination, relist it in preparation for buying the house next door? Or must she have my signed release before she can terminate the contract, and submit an offer for next door?

What are the repercussions of my refusing to sign the release? I don't care if my house sells this year or next or the year after.:confused:
 
Refusing to sign the deposit release.

Thanks for your response. I just re-read my sales contract and there is no mention of a time-frame for signing a deposit release when someone changes their mind.

My agreement of sale is contingent upon the sale of the buyer's condo. Is my buyer in default and operating in 'bad faith' when she claims that she cannot sell her condo and therefore wants out of my sales agreement when at the same time she negotiatiates to buy the property next to mine - which will also be contingent upon selling her condo? Sorry if this is confusing...

What are the repercussions of my refusing to sign the deposit release? (I don't care if my house is tied-up in litigation.) How long does litigation take after someone refuses to sign the release? Can she sue me for not signing the deposit release? Many thanks. [/QUOTE]
 
I am disappointed with the lack of professionalism by your real estate agent. Not only he drafted a very poor agreeement for you but also wants to get off easy on this failed transaction. Before I elaborate, can you tell me if your agent is associated with any real estate companies or is he an independent agent?
 
Buyer wants out of sale contract

Thanks again for your response.

My agent works for a major real estate firm in Philadelphia. My property for sale is in Philly. I am writing to you from California.

My agent finally admitted that I do not have to sign the release "most likely, until the last date on the agreement when it becomes null and void. They (the buyer) cannot just terminate. We'll see if we receive a letter from their attorney and we'll let them know our position under the terms of the agreement."

This is contrary to his last email to me saying, "Just so you know, they do have a right to terminate and we have had your property up for sale and still have it up. If this goes into litigation, that can tie up your property as well.

In response to my refusal to sign the release, my buyer's agent wrote, "It is clear that my buyer has grounds to terminate this agreement. At this point if the release is not signed and the funds released. My buyer will contact her attorney, and when we win she will seek to recoup all court cost and attorney fees from your seller."

But I pointed out to my agent, paragraph 5 on the sale agreement's contingency addendum which states, "If Buyer's Property is not under an Agreement of Sale, approved in writing by Seller, on or before 5/14/08, Seller may terminate the Agreement by written notice to Buyer and all deposit monies paid on account of purchase price will be returned to Buyer. Buyer and Seller agree to extend the date for Buyer's Property to be under an Agreement of Sale until Seller terminates this Agreement by written notice to Buyer." Nowhere does it say that the buyer has a right to terminate. I told my agent that I am willing to extend the date for Buyer's Property to be under an Agreement of Sale.

So now I am wondering how long can I delay in signing the release? Must I sign it by the original proposed "on or before" settlement date of July 14, 2008 (is that the null and void date?) or can I delay signing it for as long as I am willing to extend the date for Buyer's Property to be under an Agreement of Sale even after July 14th, if I desire? If I am allowed to extend the settlement date beyond July 14th, must the buyer agree to that change?

Isn't life great? Many many thanks for your advice.
 
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