Maikeru-sama

House Contract Question

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Today, I was informed that the seller lost his job while on route to show two contractors the property to get a bid. I spoke with the seller directly and he stated he would not like to sell the house because of it. After doing some thinking, I have a feeling the seller is not being truthful.

1. Three weeks ago the Seller’s wife let my real estate agent know that she didn’t like the new property they just closed on that it had a snake in it and was far from move in ready.

2. Last week, the Seller asks if we had a problem with them staying in the property after closing for 2-3 months so they could get the new house up to speed. I was told the Seller's wife was putting major pressure on the seller to get the house up to speed.

3. Today was the day the option period ends and coincidentally the Seller loses his job.

4. The way he and his wife were acting was very suspicious when I spoke with them.

I suspect that they just want to stay in the house as long as they want so they can get the other house ready and then try to re-sale their current one.

I will be getting all my money back that I spent but if it turns out the seller didnt lose his job, could I possibly get the house?

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It really depends on what contingencies, stipulations and "outs" are in the contract. You can only get what was agreed to and you only have to give what was agreed to.

In all my real estate transactions, as either buyer or seller, my offers and counter-offers included a bunch of possible outs, but I know others who contracts had nothing and so they were stuck no matter what.

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Most contracts have a clause for 'specific performance' by the seller.

Your contract may or may not have such a clause, you would need to look for it. Your recovery would involve suing the seller - an expensive and lengthy proposition.

Take a look at your situation and determine if it is really what you want to do. Speak to a good real estate attorney (that litigates, not all do). You may decide it is not worth the time and money to persue.

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Been a busy day, sorry for not posting sooner.

I have sought legal counsel and according to the Texas Real Estate Contract (TREC), a Lawyer and my Real Estate Agent, we have a binding contract and the only party who can legally terminate the contract is the Buyer, if he/she does it during the option period or the Buyer cannot get financing.

I suspect his wife doesn't like the new house. However, if he indeed lost his job, I will still be holding him to the contract because:

1) He has a new house, in fact it is worth $100,000 more than his current one, so he has a place to go if we buy his old house.

2) If he did get laid off, we would be helping him out as he now has 2 mortgages he is responsible for and I am trying to take one off of his hands and he is trying to fight me.

3) If we were past the option period and I lost my job, there is no doubt in my mind that he would hold me to the contract.

My Real Estate Agent said that in Real Estate, everything is done in writing and the only way the contract is terminated is if the seller sends me over a contract stating that we are terminating it and I sign it.

I have too much to lose, so I'm going forward with it the sale.

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As you all know, I sent the Seller an email informing him that I intended to sue for specific performance of a contract on Monday after his wife contacting me and all parties involved with a contract (she used the wrong freakin form by the way) stating their wish to terminated.

Of course, I have moved on, just want ALL of the money I spent on their house and have found a new property and extremely close to getting a contract on it.

A few minutes ago, my Real Estate Agent told me that the seller at the old place was scared to death of the email I sent, they sought legal counsel and their lawyer told them that they didn't have a leg to stand on and now they want to continue with the deal but (it is always something with these freakin people) they want to push back the closing date.

My Real Estate Agent wanted me to wait to give them an answer until this new house has a contract but I told him I don't want the old seller's house no matter what happens and I just want ALL of my money back. They don't want to sell me their house and I will always have that thought of what they will do to the propert if I force their hand and they seem to change their mind about everything every other day.

**Phone just wrung, Agent calling about the new property. Now me and the new seller or haggling over a few hunderd dollars :lmao2: .***

But anyway, it is funny how that email I sent them scared them really bad. I think them being scared for 5 days is enough to teach them a lesson that you don't back out of deals whimsically.

My Real Estate Agent thinks that their Real Estate Agent will just pay me my $400 out her pocket so she doesn't have to deal with her clients anymore. That just shows you how insane these people are.

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I'm glad you found another place that you like and you won't have to deal with this wonky seller!! Sounds like they have issues....:)

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Just a suggestion- I'd hit 'em for a few thousand in additional concessions as a negotiated settlement not to sue for damages. They had 0 reason to do what they were doing. Contracts are binding even if they don't like the new home or if they are unemployed. Their situation is inconsequential.

Get paid. You deserve it.

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Make sure your future contracts have a liquidated damages clause if the seller backs out. Usually a few thousand dollars for the lost time and money. This is common practice among home builders. It can be used in resale too.

If they don't agree to the clause, then just say "Then I guess you are not really serious about selling, because if you were, this would not be a problem"

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We had to move quickly because we were in danger of having legally binding contracts on 2 different houses which is highly illegal.

I have no doubt that if we would have asked for at least $1,000, they would have given it to us, but I didn't want to get into a lengthy haggle as I had found a much better house in which the seller was highly motivated and gave me a $18,000 discount so I needed to move quickly.

We just had the new house inspected today, nothing major, so the deal is proceeding nicely.

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That's fantastic!!!! Great job finding a better place! I assume you then bailed on deal #1 when the seller repudiated?

Just to clarify- it isn't illegal at all to be under agreement for two homes. It just means you'd be obligated to make good on your obligation to buy both of the homes. If you couldn't perform, then you'd be the one in breach on the home you didn't purchase- and would find yourself paying damages. Not illegal, just impractical.

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That's fantastic!!!! Great job finding a better place! I assume you then bailed on deal #1 when the seller repudiated?

Just to clarify- it isn't illegal at all to be under agreement for two homes. It just means you'd be obligated to make good on your obligation to buy both of the homes. If you couldn't perform, then you'd be the one in breach on the home you didn't purchase- and would find yourself paying damages. Not illegal, just impractical.

Yeah, I mispoke. As you stated, I wouldn't have been able to do both.

My REA wanted to wait to see what happened with the 2nd House before giving the Seller of the 1st house an answer. However, I told him I didn't want the 1st House no matter what happened with the 2nd House because I didn't want to do business anymore with the Seller of the 1st House.

On another note, the Seller has agreed to fix 4 out of 5 things we asked him to fix and we will have the Warranty Company come out and fix the 5th issue, which isnt that big of a deal.

The Seller is really hurting for cash. We suspect that he is going through a divorce and cannot afford to bring any money to the closing table. I tried to get him to close on August 1st so my first payment wouldnt be due until October but he said he needed to close at the beginning of July and it was a deal breaker if I couldn't do it. The guy just can't afford to pay another mortgage in July as he is living in an Apartment Complex at the moment.

I just got back from my REA's Office and he showed me the Comps on the houses in that neighborhood and on that street square foot-wise. We got our house at $77 a Sqft and the average was around $85.

We close July 9th and right now I am trying to figure out if I want to roll my Closing Costs into my loan or pay it out at Closing, which right now that is what I plan to do. I will have plenty of money in the bank but it will put my savings right at the level that I start worrying about. I have an excel spreasheet with about 10 sheets in it and one of the sheets has my entire budget for the next 20 months and in November 2009, my savings should be back to where it was before paying the downpayment and closing costs. By April 2010, I should have more money then I have every had in my account but budgets are just that, budgets.

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