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The repairs were listed in a written agreement that the buyer and I (the seller) signed within the 5 day time frame follows the end of the inspection Contingency Period. So, if Understand your explanation, this written agreement became a firm complete contract because I agreed do the repairs that the buyer requested.
If I understand the agreement, the buyer accepted the property and sent me a proposal of the repairs he wanted me to do, which I agreed. The Part B in my original message posted in this thread says that within the Inspection Contingency Period, the Buyer had three exclusive options (note the exclusive OR): (1) accept the property, OR (2) Terminate the agreement or (3) submit a Proposal of the repairs needed to do to the house. He chose option 3 and as such he accepted the property under the conditions of the repairs, which I agreed to do in written/signed manner. He cannot terminate the agreement with the 5 days followed the end of the Contingency Period per Paragraph PartB(3)(a). without having consequences as I was still under the stated time frame to respond, and I did that accordingly. I am not a lawyer but this is why I think and I still think this is the logic behind this.
The agreement doesn’t say that I should respond quickly, but these paragraphs are written in an agreement for cases like this. He did terminate the agreement and as such, Buyer is in default and his security should be forfeited. Period.
I don’t understand why this Inspection Contingency Period was written in the agreement if the buyer can terminate the agreement at any time? however, I understand that agreement can be terminated at any time but consequences should follow for either party.
I have under agreement for rentals and I have canceled them before moving in and I have lost the security deposits. Cases like this happen very often, why buying a house is different scenario and these paragraphs in the agreement cannot be exercised ? but instead those well-known-Agent “rules” that are subject to interpretation and variability?
In a situation such as this, I know many attorneys who would have refused to accept the case as just not worth the time - in otherwords, costs and hours would eat up most, if not all, the moneys sued for.
I think it's a wise decision, OP, to drop the idea of suit.
I have under agreement for rentals and I have canceled them before moving in and I have lost the security deposits. Cases like this happen very often, why buying a house is different scenario and these paragraphs in the agreement cannot be exercised ? but instead those well-known-Agent “rules” that are subject to interpretation and variability?
They aren't agent rules. They are legal issues pertaining to contracts. You need to talk to an attorney. You are set on your interpretation so it is best to chat with a local attorney so you can understand what you signed.
Silverfal, if you read oldtrader's comment, it says that a Professor (Real Estate Lawyer) said that when the Seller takes too much time to agree to a term of the offer that odds on are that the buyer, will withdraw their offer to buy or other condition they are negotiation on. So, this looks like a Well-Know-Agent rule that are not written in the agreement. Immediate response is needed even though the agreement says a time frame should be followed.
I still don't buy that the buyer can terminate an agreement after the Inspection Contingency Period ends and he can walk out without suffering consequences, even though the seller agreed about all condition the Buyer first requested.
Imagine this possible scenario: Buyer 1 signed an agreement and decided to terminate it after the Inspection Contingency Period is met. He walked out and deposit is returned to him in full. Seller hen lost 15 days or so and the possibility to sell the house to another buyer. Then, Buyer 2r does the same. Seller lost now a month and the second buyer walked out again with his deposit returned to him in full even thought the Contingency Period was exhausted for him too. So, no protection to the seller under this possible scenario of two Buyers? Hard to accept this as a seller.
Silverfal, if you read oldtrader's comment, it says that a Professor (Real Estate Lawyer) said that when the Seller takes too much time to agree to a term of the offer that odds on are that the buyer, will withdraw their offer to buy or other condition they are negotiation on. So, this looks like a Well-Know-Agent rule that are not written in the agreement. Immediate response is needed even though the agreement says a time frame should be followed.
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I don't have your contract but the fact that the agent thinks they can back out tells me you function on business days and not calendar days which would put the 4th on the last day of the inspection contingency.
As for the taking too long thing, that is just normal consequences of negotiation. Since your agent kept documents for three days before getting them to you, I can't say I'm surprised that this wasn't discussed with you. There isn't an agent rule issue. This is normal buyer behavior and some agents are more effective at communicating consequences than others.
I don't have your contract but the fact that the agent thinks they can back out tells me you function on business days and not calendar days which would put the 4th on the last day of the inspection contingency.
As for the taking too long thing, that is just normal consequences of negotiation. Since your agent kept documents for three days before getting them to you, I can't say I'm surprised that this wasn't discussed with you. There isn't an agent rule issue. This is normal buyer behavior and some agents are more effective at communicating consequences than others.
This business day vs. calendar day baloney really makes me appreciate that we work on dates more than counting days in NC.
And that we when we do days, it is just calendar days as we eliminated the concept of business days several years ago.
OP, the consensus of this internet forum appears to be that you should just let them walk away, even if they did submit the termination a few days late. It's just not worth aggressively pursuing just because you feel that you were wronged. It's just been a 16 day inconvenience...not the best by any means but definitely not the worst. You really didn't lose anything...what ifs are just that - what ifs. no way of knowing that your home would've fetched another offer in the time being consumed dealing with those people. If you wanted to be punitive, like I said you could withhold a nominal amount of money (if this provision is specified in the contract), but definitely not the entire $10K...what would you be recouping? Nothing tangible.
I'll just give you a point of reference. I was buying a property while the market was quickly rising and the seller refused to sign the closing documents at the last minute. I engaged a real estate attorney and paid $1000 which she explained would likely cover sending one letter and receiving one response.
She basically told me the plan was to try and scare him into signing the paperwork. Had I chosen to actually file a complaint and go to court, I was told it would easily be over $10,000 in legal fees. Even if I had gone that route, she said the goal was always to settle as soon as possible.
In the end, he did end up voluntarily selling me the property. It cost me $1,200 in legal fees since it was only the one letter and one phone call with his attorney that took place. I didn't recoup any of my legal costs.
My point being, your legal fee estimate could be right or might not be, it really depends on how far the other side presses it. Also, the attorneys know how to play off each other and "generate" work if they know their clients will pay.
Quote:
Originally Posted by capacho
I am not sure if this worth it for sure, but I am still thinking about running numbers. I know attorney's rates are in the range of $250-$350. With this in mind, I come up with a figure of $3,000-$5,000 for legal stuff. The deposit is $10,000. So, If I win I can have $5,000 or more at the end as liquidated damages, which will allow me to pay the mortgage and other fees, while I will be waiting for the next buyer. ..
The house was not shown in 16 days, during this process, and again I was agreed about doing all repairs. The buyer just submited the termination letter without any logic reason. I could have lost another potential buyers. This is why I am running my numbers to see if this works for me in case I win..
You don't seem to be accepting the advice your Realtor or most people here are giving. You obviously see that $10,000 as yours. So if you are bound and determined to get it, you need an attorney. If you pursue this without legal advice, you are liable to get yourself in more trouble. And it isn't likely your Realtor will come up with any answers that will please you since she's disagreed with your attitude from the beginning. I have a feeling your Realtor will release you from any obligation you have with her for representation.
This business day vs. calendar day baloney really makes me appreciate that we work on dates more than counting days in NC.
And that we when we do days, it is just calendar days as we eliminated the concept of business days several years ago.
We function on business days. It isn't a huge deal. I just make a Google Calendar after mutual acceptance and share it with the other agent and my client so that we are all clear when the dates are. I've found that some agent struggle with counting days.
We do it that way or we would have to counter on dates with each counter offer as you can spend a week countering back and forth sometimes. We do take deadlines seriously out here. We don't do those cure forms that a lot of states do. Either you make the deadline or you don't.
Out here if the client really terminated outside of the contingency time frame, it would be a no brainer to fight for the earnest money. And for people who say the seller never gets it, my clients deserved it three times and got it three times.
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