Buyer got cold feet one week before closing

9 years ago

We were sent the form Termination of Contract by Mutual Agreement with Release of Earnest Money.

Is there a downside to signing this? Would the realtors be able to
come after us, the sellers, for their commission they would have earned
if the sale went through.

Should we just wait the week and let the buyer be in breach of the contract?

Also, we had work done on the house for the buyer, had to pay extra for it to be expedited and now they aren't going through with the sale. The earnest money does not cover the carrying costs we've incurred or the work that has been performed. We also moved out all our belongs last weekend in anticipation of the closing.

Featured Answer

Jane Smith
Original Author

9 years ago

If I want the earnest money I have to sign it.

I spoke to an attorney, she said take the earnest money and move on.

Realtor says take the money and move on.

Work at the house did need doing. It however did not need doing urgently and could have waited to be put on the contractors regular schedule and not pushed through as a priority. I had offered the full cost of the work and additional money if the buyer did it after closing. I've basically had my life turned upside down to get the work completed in 9 business days and had to pay a premium price to get it done.

These buyers have been a pain the ass since day one. You would not believe the stuff they have pulled. I'm relieved to be rid of them but not about having to start over again for a third time. Maybe the next buyer will be sane.

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Comments (10)

PRO
Anglophilia
9 years ago
Wow! You've had problems with this sale from the very beginning. At one point, YOU didn't want to go through with the sale.!

I think you are talking about civil action against the buyers to recoup your costs of repairs etc, but that will cost you a LOT of money and probably not net you anything.

Where has your realtor been in all of this? Did they give you any reason for backing out of the sale? Nothing has been "right" about this entire process.
cpartist
9 years ago
What does your RE agent and lawyer say at this point?
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aprilneverends
9 years ago
the realtors won't go after you..no sale-no commission. they know the risky part of the job

(unless somebody please correct me if I'm mistaken)

work..as much as you're devastated now..other buyer might ask for it too, so you wasted money but not completely wasted..having house prepared is good

unless they asked you for superficial stuff, and you obliged..I truly hope they didn't, that it was repairs or something reasonable

moving out the belongings..yeah, there when it gets really really maddening. beyond just maddening.

did they give any reason?

I would think that decent people would consider how much they disconvenienced you, and wouldn't ask for earnest money.

I don'k know the rules though. That's just my personal feeling on the matter.

I'd be interested to read other answers
User
9 years ago
Yes, where *is* the realtor in all of this?

Theoretically the purpose of the earnest money is to protect you in precisely this situation. I don't see how this is a termination of the contract by "mutual agreement."

I would be interested in what our professionals here say.
pudgeder
9 years ago
You've received the advice from 2 professionals- the RE & an attorney.

Take the money and move on.
Denita
9 years ago
Agree. Since you are getting the EMD, sign it, take the money and put it back on the market. Hopefully the EMD was a decent amount.
PRO
Anglophilia
9 years ago
You hire professionals for their expertise. Take their advice and next time don't be so unsure about whether or not you want to sell this house. You have been all over the place with this sale. Perhaps that is why the buyers backed out - not sure they could count on you to close.
Jane Smith
Original Author
9 years ago
Thanks for you opinions. We signed the agreement and will get the earnest money.

Time to regroup and get the house back on the market next week once the work is completed.
apple_pie_order
9 years ago
You've done quite a bit on the house since it was first on the market. As part of the silver lining of putting it back on the market, you could consider getting new professional photos showing the house and neatly trimmed wooded lot in mid summer. Take a fresh look at the existing photos and see what you think. Good luck with the next set of buyers.