Seller refuses to Sell the house after signing contract

[aktt]

Jurisdiction

Georgia

Hi all,

I am looking for some advice on a situation were seller decided not to sell a residential property after signing the contract, breached the contract by not sending required documents that are part of contract. Seller is so shady, wouldn't request to terminate the contract in writing nor have a negotiation talk resolve the issue. Instead seller sent an in-valid notice that buyer has violated the contract. As a buyer I sent termination notice stating, I (buyer) am willing to terminate contract as requested by seller if seller agrees to pay cost incurred for house inspection, storage of personal property and any lender fees if I terminate mortgage. Total I requested for reimbursement is about $2250.
I have not terminated the mortgage as I have not received written request from seller to terminate the contract. At the same time, as I have signed contract to buy the house I do not want to miss the financial contingency required by contract. If I do not satisfy the financial contingency then the seller will have an option to terminate the contract.
Am I doing the right thing here? Worst case scenaro, can I go to small court to claim and get my cost reimbursed?
My realtor confirmed they will return the earnest money if the contract is terminated. Is there a scenario where I would lose my earnest money?
I appreciate any quick advice. Thanks.

 

[army judge]

Have you SECURED financing, or do you plan to be a CASH buyer?

What does the "contract" say about cancellation?
Have you read it?
Do you understand it?

No need to answer those questions, as they were meant to help you EVALUATE your position.

Generally purchase contracts spell out "losses", in the event of cancellation by either party.

If you're concerned about losing $2,000, you might wish to discuss the matter with an attorney, or "eat it".

Yes, you can sue anyone for almost anything in small claims court.

Who will prevail?

That is a question no one can answer, but you certainly are free to try and recoup any ALLEGED losses due to an alleged contract breach.

 

[adjusterjack]

As a buyer I sent termination notice stating, I (buyer) am willing to terminate contract as requested by seller if seller agrees to pay cost incurred for house inspection, storage of personal property and any lender fees if I terminate mortgage.

That's not a termination notice, that's a "willing to terminate" notice. All that did was keep you in limbo because you did not take appropriate action upon the breach by the seller.

I can't tell you how to write the letter because I'm not a lawyer and that would be specific legal advice.

If you can't figure out how to do it right, I suggest you consult an attorney as there may be more at stake than just your $2250.

If you don't get this right you could be the one sued for breach of contract.

My realtor confirmed they will return the earnest money if the contract is terminated.

Not if you're the one doing the terminating.

Please don't take legal advice from your realtor.

Is there a scenario where I would lose my earnest money?

I think I just gave it to you.

 

[army judge]

Not if you're the one doing the terminating.

Please don't take legal advice from your realtor.

Adjusterjack has given you some great food for thought.

The most important nugget of information for your consideration is "don't take legal advice from a real estate salesperson".

In fact, if you're buying a home WITHOUT hiring a real estate attorney to protect your interests, you're being pound wise and penny foolish.

If you must buy real estate, don't proceed until you have retained the services of a real estate attorney.

If such an expenditure isn't within your budget, don't proceed until you can afford a real estate attorney to protect you and your assets.

 

[zddoodah]

I am looking for some advice

Please read the disclaimer at the bottom of the page regarding advice.

breached the contract by not sending required documents that are part of contract.

This doesn't make much sense.

seller sent an in-valid notice that buyer has violated the contract.

Why is this notice "in-valid"? How does the seller claim that you have violated the contract?

I sent termination notice stating, I (buyer) am willing to terminate contract as requested by seller if seller agrees to pay cost incurred for house inspection, storage of personal property and any lender fees if I terminate mortgage. Total I requested for reimbursement is about $2250.

Did you get a response to this? If so, what was the response?

I have not terminated the mortgage as I have not received written request from seller to terminate the contract.

Huh? What mortgage? The only mortgage that ought to exist is the mortgage that the seller took out, and you obviously have no ability to terminate that mortgage.

as I have signed contract to buy the house I do not want to miss the financial contingency required by contract. If I do not satisfy the financial contingency then the seller will have an option to terminate the contract.

What is that contingency?

Am I doing the right thing here?

I haven't the slightest idea.

can I go to small court to claim and get my cost reimbursed?

Maybe.

Is there a scenario where I would lose my earnest money?

Yes.

I agree that you need to be speaking with a local real estate lawyer about this.

 

[adjusterjack]

you're being pound wise and penny foolish.

I thought that was penny wise and pound foolish.

Or did you do that on purpose to make a joke?

 

[army judge]

did you do that on purpose to make a joke?

You got me.

I did it to see if anyone would notice.

Good catch...

 

[aktt]

Thank you all for your responses. I ended up terminating the house contract. I learnt my lessons, I was dealing with zero trustable buyers agent (my realtor) who was looking to make money off me and a total liar seller who wanted to terminate the contract possibly to sell the house for a higher price after signing the contract with me. And I suspect my agent is helping seller with the sale. I am glad I woke up sooner than later. Thanks again for all your thoughts.

 

[army judge]

Thank you all for your responses. I ended up terminating the house contract. I learnt my lessons, I was dealing with zero trustable buyers agent (my realtor) who was looking to make money off me and a total liar seller who wanted to terminate the contract possibly to sell the house for a higher price after signing the contract with me. And I suspect my agent is helping seller with the sale. I am glad I woke up sooner than later. Thanks again for all your thoughts.

Good for you.

It is never too late to gain wisdom.

Make sure you retain an attorney to represent you next time.

Never trust a salesperson who invents a title to NOT make you think the person is a salesperson, as in realtor or real estate agent, who are simply salesperson motivated by greed, not your need.

 

[adjusterjack]

I suspect my agent is helping seller with the sale.

Exactly. "Buyer agent" is a scam perpetrated by the "Realtor" industry. The agent doesn't get paid until the house sells so who do you think the agent is really representing? Whoever is paying the commission, of course.

Next time somebody wants to be your "buyer agent" ask them to waive their commission and you'll pay them $500 to represent you in the transaction. The reaction will speak volumes.