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Updated almost 13 years ago on . Most recent reply

User Stats

25
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2
Votes
Travis D.
  • Wholesaler
  • Montclair, NJ
2
Votes |
25
Posts

Problem with Purchase Agreement that was Assigned

Travis D.
  • Wholesaler
  • Montclair, NJ
Posted

So I'm interested to get some feedback and guidance on an delicate issue I have right now. I put a property under contract and it so happened to be one that was vacant for 3 yrs and the sellers were still moving personal items out of the house but would ultimately be leaving most of their debris/rubbish come closing. I have in my purchase agreement as part of my inspection clause, "Unless specifically excluded in this agreement, all other items of personal property located in or on the property shall be included in the sale. This clause shall survive closing of title".

Well, I've since assigned my contract (got 1k deposit to my company, 2k deposit to title company escrow, and getting another 9k @ closing) and the new buyer is expecting to keep all the items in the house, when I had a previous understanding with the seller that we would just remove anything they left post closing.

What I'm asking is does the new buyer actually have rights to the items the Seller hasn't yet removed? How do I work around this to make sure the Sellers do not lose rights to it but also prevent a legal issue with the Buyer. Do I have legal liability in this situation? Your thoughts and feedback would be much appreciated.

Most Popular Reply

Account Closed
  • Investor
  • Central Valley, CA
3,729
Votes |
6,037
Posts
Account Closed
  • Investor
  • Central Valley, CA
Replied

Travis: Your buyer/assignee takes over all terms of your contract. If your contract says the stuff at time of inspection is yours and nothing was excluded, it's now the buyer's at closing. I'm assuming the buyer/assignee read the contract and thinks the stuff is his at closing

Did the seller read and understand what they signed? Why did you have a seller sign a contract that didn't exclude anything, if you knew they wanted the stuff?

I'd get on the phone with both parties and figure out what the sellers expect to keep and work with the buyer to change the terms of the contract. Maybe the sellers don't want to keep that much. Maybe the buyer doesn't care that much. But I'd fix it asap.

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