Legal Issue with Addendum to Contract

[Account Closed]

Hello BP Community,

   I have had a 7-plex in Ft. Lauderdale under contract for the past 5 weeks. Full due process has taking place and we were set to close this past Tuesday (the 7th.)  I was requesting all leases for over two weeks and the selling agent finally got me all the paperwork, on the 5 (24 hours prior to closing.) I know it was a holiday weekend but inexcusable to me. The leases were a mess and included; unsigned leases, horrible clauses, and extremely unprofessional language. All 7-units were occupied and there were no security deposits. There were flaws through all the paperwork and it was so alarming.

  The original contract stated the seller had up until 5 days prior to closing to supply the leases and I as the buyer had up until two days before closing to review the leases. That Friday night I had an addendum drafted up and stated. 

"1. The closing day is hereby extended to July 13,2015.

2...As previously stated in the original contract the seller had up until 5 buisness days prior to closing to supply all leases. The five day period expired at 5:00 PM on 7/2/2015. The buyer hereby agrees to extend this period 24 hours until 5:00 pm on 7/3/2015

3. The buyer now has until 5:00 pm on July 10 to contact tenants to confirm information as noted in the leases, and to notify the seller in writing of any discreptencies. If terms of the lease differ materially from the sellers representation, buyer may deliver written notice to seller within 5 days of the receipt of Lease Information, terminating this contract and receive a refund of the deposit, thereby relapsing buyer and seller from all further obligations under this contract."

With signatures in the addendum and taking to my partners and advisors and running full background checks I was having huge concerns. I drafted up a professional written letter my concerns and canceling the contract, I sent a certified letter on the Wednesday and notified seller through email and phone call. The title company needs the sellers signature to release the escrow and I don't foresee the seller signing this.

Any suggestions with avoiding court? Thanks in advance.

[Wayne Brooks]

Nope, the title co.(nor an attorney) can't make a decision about the EM.  They need a release from both parties to release.  Which contract did you use?  The FARBR calls specifically for mediation, then court action.  It's also not clear When you delivered notice of cancelation, and if it was valid?  Was the addendum executed by the sellers?  Were the 2 days you mentioned, "business days"?  Were there any "material" differences in the leases?  Either way you're headed to court, it just a matter of whether you win, lose, or split.