What is the penalty for backing out of a seller finance deal?

[Levertis Brock]

I backed out of a seller finance deal after the contingency’s expired what am I on the hook for?? I’am being told from the law firm that was handling it that I have to pay the paperwork fee a title fee and pay for a repair on the house I was going to buy. I think they just doing this out of spite I think I only have to pay emd.

[Jay Hinrichs]

Quote from @Bob Stevens:

Quote from @Levertis Brock:

@Bob Stevens maybe you can explain how you do all your dd prior to going into contract because I do mine prior and while I’am under contract during the inspection contingency. Also the same thing has happen to David Greene he spoke about it in his book on brrrr. I got done dirty I was talking to the listing agent because I was planing on having her act as my dual agent instead she gave me off to her best friend and had her friend give me a copy of the previous inspection report but she took out a section and lied and told me that it had the previous person name on it so she had to take that off. I didn’t know that a real estate agent will do a lot of illegal things to get that fat commission check smh I’ll never forget this situation it’s like putting your hand on a stove I got burned but it won’t happen again

 Hi, well 1st off I never use a realtor, as all my deals are off market.  Also, I would never rely on someone else not on my team to tell me what the property needs or does not need. " I " walk the property, it typically takes 15 min or so , I then give a cash offer as is and close. I never ask for inspection period. If it takes you more than 2 min (Prior to walking the prop) to do your DD, then do not buy it,  really not sure what DD. you are doing as you should know exactly where to buy and what to pay. Any property on any street in my market I can tell you what its worth in under 1 min, and what I will pay,  you will get there as well.  Please connect with someone doing deals, NOT a realtor, learn then apply what you learn. You will be amazed how fast you pick it up.  I wish you all the best

Bob, come on now your a pro I am a pro I have funded over 3500 beat up rehabbers in 15 different markets including Cleveland.  While I can get a feel for things of course and you get your deals at a price you can still come out if you miss something.. the average BP investor starting out and trying their first BRRR should absolutely get an inspection and rely on it heavily .  No way should they walk through a house in 2 minutes then close on it.

Granted they all look pretty much the same condition wise but there could be things structural plumbing electrical that needs further or deeper review for someone not doing a lot of volume and has their own crews etc etc.

Just sayin.. he is in my mind doing the right thing.. things came up he chooses not to close he does lose his EMD but I am with him i would tell the closer they can forget getting paid after the fact that's the risk closer takes cost of doing business . I never pay a closer for a title report or any other work they do if the deal fails at least if they want my business again.