Buyer backing out of no contingency contract

[Anonymous]

We sold our home as-is. No inspection contingency. Pre-approved. They want to back out because they changed their mind. Unfortunately, they only put a small amount down as earnest money and our agent assured us that this is a good offer since they waived the home inspection clause. We can't afford a real estate attorney so are we pretty much screwed?

[Anonymous]

How are you screwed if you keep the earnest money?
How much was it anyway, compared to the price of the house?

[Anonymous]

Not much - only $2k. House is selling for $390K. No other real interest in it.

[Anonymous]

Agent here.

So the buyers essentially presented an offer that had no contingencies and they want to walk. Wow. I can't say this isn't unusual because buyers are doing all sorts of things to get houses. You could actually sue them for the deposit and more - but this is up to a settlement attorney to decide first. The settlement attorney should hear both sides and then tell the buyers - you don't get your $2K back. The buyers need to agree to release it. If they fight, they actually still have an interest in the house and you can't relist or sell to anyone else until you agree to give these asses back their money and they sign a release. It's pure and utter BS, I have a buyer who got cold feet the MORNING of settlement and is current in litigation for the deposit back which the seller won't release. Can't blame the sellers for fighting my client.

In your case and in the case with my client - if the buyers win and get to walk away and keep their deposit, it sets a whole new precedent for contracts becoming meaningless. Unbelievable.

Call the settlement attorney tomorrow and see what they say. Will you report back? I'm curious.

[Anonymous]

The DC real estate market is complete and utter nonsense. If walking away from contract becomes the new norm, then it will undermine the local real estate market and eventually lower regional house values. But why not? The rule of law seems to be out of style across the board in this country today. Anarchy!

[Anonymous]

You can only take their 2k next time get 5% EMD

[Anonymous]

Anonymous wrote:We sold our home as-is. No inspection contingency. Pre-approved. They want to back out because they changed their mind. Unfortunately, they only put a small amount down as earnest money and our agent assured us that this is a good offer since they waived the home inspection clause. We can't afford a real estate attorney so are we pretty much screwed?

If I were the buyers I would be worried that my name would get around the realtors, and no one would take my offers seriously again.

[Anonymous]

We dont even have a settlement date yet. We signed the papers last week and are waiting for the appraisal, which they also stated in the contract that they would cover if it comes in up to 10k below sales price. Our agent is trying to save the deal and I will report back. Just seems odd that it is so easy to walk away. This is extreme but can I force them to buy, isn't this a breach of contract? I too think its crazy that a signed contract is useless.

[Anonymous]

It's the agent again.

These are all good questions. I agree, I was stunned when my client just up and decided to not buy the house for no real substantial reason. It's been going on for months now. Unfortunately, everyone has to get lawyers if the settlement attorney can't handle it.

In your contract the buyers should have named a settlement attorney. You need to contact that company and explain what's happening and see what they say. They represent the contract - not either side. Their opinion will be most important here because even if both sides get lawyers (I know - you don't want to do that but just as an example) the lawyers have to call the settlement attorney to get the scoop, and the settlement atty is going to say the same thing to them that he said to you and the buyer. So that becomes important because it's not worth it for each side to lawyer up just to all reach an agreement that would be what the settlement agent says anyway.

The other bullshit thing here is that you forfeited other offers for theirs because it appeared more solid, and as such, you likely have much more than a $2000 loss here - and should you lawyer up, that could be proven. Your goal should be to get back on the market asap before the summer starts though, and as much as I would love to see you force their ass to buy, it's doubtful you can make them. I never thought my client would go so off the wall batty and fight this the way it's been going - my client is dead wrong. But we'll see what happens. It's been going on for 3 months now. Don't be in this boat - I hate to say it but you probably have to let those assholes go so you can sell your house asap.

Your agent also needs to scare them and say to their agent that you have zero plans to release their deposit.

[Anonymous]

Anonymous wrote:It's the agent again.

These are all good questions. I agree, I was stunned when my client just up and decided to not buy the house for no real substantial reason. It's been going on for months now. Unfortunately, everyone has to get lawyers if the settlement attorney can't handle it.

In your contract the buyers should have named a settlement attorney. You need to contact that company and explain what's happening and see what they say. They represent the contract - not either side. Their opinion will be most important here because even if both sides get lawyers (I know - you don't want to do that but just as an example) the lawyers have to call the settlement attorney to get the scoop, and the settlement atty is going to say the same thing to them that he said to you and the buyer. So that becomes important because it's not worth it for each side to lawyer up just to all reach an agreement that would be what the settlement agent says anyway.

The other bullshit thing here is that you forfeited other offers for theirs because it appeared more solid, and as such, you likely have much more than a $2000 loss here - and should you lawyer up, that could be proven. Your goal should be to get back on the market asap before the summer starts though, and as much as I would love to see you force their ass to buy, it's doubtful you can make them. I never thought my client would go so off the wall batty and fight this the way it's been going - my client is dead wrong. But we'll see what happens. It's been going on for 3 months now. Don't be in this boat - I hate to say it but you probably have to let those assholes go so you can sell your house asap.

Your agent also needs to scare them and say to their agent that you have zero plans to release their deposit.

It begins with a trickle, it becomes more commonplace, and then it will be the norm to walk away if you so desire. Believe me, this will seriously undermine the DC real estate market. Thank goodness for the abundance and wealth of all-cash, foreign buyers out here in my neck of the woods.

[Anonymous]

Yes, if the facts are what you say-- that they signed a contract with no contingencies and now do not want to close-- you can sue them (although it's not really clear from what you've posted that there were no contingencies).

Yes you will likely need a lawyer, so you'll need to decide whether it's worth it to you in time and money to pursue this, but you can if you want to.

[Anonymous]

Anonymous wrote:

Anonymous wrote:It's the agent again.

These are all good questions. I agree, I was stunned when my client just up and decided to not buy the house for no real substantial reason. It's been going on for months now. Unfortunately, everyone has to get lawyers if the settlement attorney can't handle it.

In your contract the buyers should have named a settlement attorney. You need to contact that company and explain what's happening and see what they say. They represent the contract - not either side. Their opinion will be most important here because even if both sides get lawyers (I know - you don't want to do that but just as an example) the lawyers have to call the settlement attorney to get the scoop, and the settlement atty is going to say the same thing to them that he said to you and the buyer. So that becomes important because it's not worth it for each side to lawyer up just to all reach an agreement that would be what the settlement agent says anyway.

The other bullshit thing here is that you forfeited other offers for theirs because it appeared more solid, and as such, you likely have much more than a $2000 loss here - and should you lawyer up, that could be proven. Your goal should be to get back on the market asap before the summer starts though, and as much as I would love to see you force their ass to buy, it's doubtful you can make them. I never thought my client would go so off the wall batty and fight this the way it's been going - my client is dead wrong. But we'll see what happens. It's been going on for 3 months now. Don't be in this boat - I hate to say it but you probably have to let those assholes go so you can sell your house asap.

Your agent also needs to scare them and say to their agent that you have zero plans to release their deposit.

It begins with a trickle, it becomes more commonplace, and then it will be the norm to walk away if you so desire. Believe me, this will seriously undermine the DC real estate market. Thank goodness for the abundance and wealth of all-cash, foreign buyers out here in my neck of the woods.

Oh I totally agree with you. The settlement agent asked me with my client what I was hoping for as an outcome. I said "I don't know what to tell you but adults sign contracts and adults have several periods of time they can legally back out - condo docs, home inspection, appraisal if there's no agreement....this sets a bad precedent if the buyer can just walk so we have to let the court decide."

And I truly believe that. You're right, it's going to be the norm for sure because we live in a world now with a generation of entitlement coming up into the home buying ranks. They know they signed a contract, but they just don't care.

Now I have to go back out to my front yard and shake my fist at some more hooligans. I know, I know....

[Anonymous]

Now you've learned the lesson to make sure to take a deposit that a buyer will think twice about walking away from. Go back to the other potential buyers and see if they are still interested.

[Anonymous]

Anonymous wrote:You can only take their 2k next time get 5% EMD

Real estate attorney here. This is absolutely wrong.

[Anonymous]

Anonymous wrote:Agent here.

So the buyers essentially presented an offer that had no contingencies and they want to walk. Wow. I can't say this isn't unusual because buyers are doing all sorts of things to get houses. You could actually sue them for the deposit and more - but this is up to a settlement attorney to decide first. The settlement attorney should hear both sides and then tell the buyers - you don't get your $2K back. The buyers need to agree to release it. If they fight, they actually still have an interest in the house and you can't relist or sell to anyone else until you agree to give these asses back their money and they sign a release. It's pure and utter BS, I have a buyer who got cold feet the MORNING of settlement and is current in litigation for the deposit back which the seller won't release. Can't blame the sellers for fighting my client.

In your case and in the case with my client - if the buyers win and get to walk away and keep their deposit, it sets a whole new precedent for contracts becoming meaningless. Unbelievable.

Call the settlement attorney tomorrow and see what they say. Will you report back? I'm curious.

There are so many things wrong in this post.

Don't take all above to heart, hire a contingency attorney.