All Forum Posts by: Ann Anderson

Geez...shame on both of you.  The seller never should have accepted the contract without earnest money being placed nor should you have jumped into this the way you did.  In fact, you have a contract under the law; read this: https://www.dickinsonlaw.com/b...

In "real life," when a buyer fails to place escrow - the property is immediately put back on the market and both parties move on.  But the reality is this:  the seller took the property off the market and when he did so, it cost him time and money. A "real/serious buyer" would be further along than the panic stage that you're in.  If there are realtors involved, this is quickly resolved.  If not, it's different.  I would consult a real estate attorney and submit a Cancellation of Contract immediately.  

The chaos manufactured is inexcusable.  I recommend cancelling immediately; the longer you wait, the more damage you are creating.

 Were the room dimensions not listed or the square footage to give you an idea of the size?  While I have bought a place without seeing it in person, I had someone I trusted go through it and did a video walk through with my realtor.

@Ann Anderson Some here have said that the contract is not binding without the deposit being tendered, so let's look at the elements of a contract.

The three major components of a contract are offer (your written offer), acceptance (the seller accepts your offer) and consideration (something of value changes hands).

So at first glance, it appears that you might be of the hook without tendering that deposit - HOWEVER - there is case law that treats the offer itself as a thing of value that can satisfy the need for consideration.  Here's a good resource: https://courses.lumenlearning....

There are other elements of a valid contract like proper identification of the parties and item being sold, mental capacity, meeting of the minds, etc.  If something was misrepresented, you might have a case for there not being a meeting of the minds, but that would be a battle in court - and that's expensive. 

If you are buying from a wholesaler, you could argue that because unlicensed real estate brokering is illegal in most (maybe all) states, the contract was formed for an illegal purpose and is unenforceable.  In fact, I believe that it would be not just voidable, but void at the moment it's written.  I'm not a lawyer, so check me on that.

An alternative is to tell the seller's agent that you're not moving forward and if they threaten to sue, tell them to bring it on.  Suing you will cost them money too and they may just go away, but that's a big gamble on your part.

If you want to fight this, you either need an attorney to help you, or as @Russell Brazil said, see if you can negotiate your way out with the seller.

You need to come to some sort of settlement with the seller. You are in default of contract. Negotiate. See what dollar amount the seller is willing to take to let you walk away from the property.

You could be on the hook for damages if the property sells to another party for an amount lower than your current contract price.

I would ask an attorney bc how can the contract be binding without the money? Plan B is to make sure the appraisal comes back too low

She is correct that seller is her client and you are the customer, but normally you sign something to that effect but each state is different. Did you fill out a financing contingency with the Pirchase &

Was the contract one of your own or from the seller's agent? Are you financing or cash? Did you use an agent? 

Technically, you're in breach of the contract, but I seriously doubt they'll come after you and, at most, would be for the earnest money. Seems weird if it's such a hot market they would even waste time and just move on to the next buyer. Also, saw this and first I've heard of it: "If [the seller] choose to file a lawsuit, the buyer may file a “lis pendens” in the public records. This notice shows that your property is involved in a lawsuit, and you won’t be able to sell your property during this time I am not a lawyer nor do I play one on TV and this isn't to be used as legal advice." Good luck, let's know how it shakes out. 

@Ann Anderson it is my understanding that if the earnest money is not paid, it is not binding. Please check with Realestate attorney, but the money is what binds it was my understanding.

Try Josh Rand at Rand and Associates.