Answers (6)
- Brian Teyssier, "Brian Teyssier GRI"
- Contributions:1512
In Pa, they would get it back too.
Hey, the buyer is falling on hard times, do not fight them on the earnest money. You will sell your place & the buyer is in a tougher spot than you. Put yourself in their shoes. Good karma will come to you, let them out and move onward and upward. :-)
Best of luck to you.
Hey, the buyer is falling on hard times, do not fight them on the earnest money. You will sell your place & the buyer is in a tougher spot than you. Put yourself in their shoes. Good karma will come to you, let them out and move onward and upward. :-)
Best of luck to you.
- Vivianne Rutkowski, "VivianneRutkowski"
- Contributions:984
It is hard to comment without seeing your contract; however, in the state of Virginia, IF your buyer still has contingencies left - home inspection, HOA documents, financing - they could LEGALLY VOID the contract and, YES, get their Earnest Money Deposit back.
Your buyer could void the contract on home inspection or HOA docs for any and no reason at all. If they show the company email about the layoffs, the lender will not be too eager to finance the purchase, either.
IF it makes you feel any better, once the contingency dates pass, YOU as the SELLER could also force the buyer to perform according to the contract .... in Virginia the law is such that even if the buyer passes away, his/her family is responsible for the real estate contract ....
If I were you, I'd be grateful the buyer let you know as soon they knew, instead of voiding the contract a few days before the settlement ....
Perhaps the buyer is on very good terms with the employer and asked him/her to send the email about layoffs because the buyer stopped liking the house, found another house, or just suffered from "buyer's remorse" .... it does NOT matter as long the buyer still had contingencies left that he could use to void the contract legally ....
Even if the buyer used already a home inspection and HOA docs contingencies - although I doubt since only 5 days passed since ratification - you could argue the buyer is artificially manufacturing a reason to get out of the contract, but is it worth your time and effort to play a DETECTIVE only to find out the buyer was HONEST???
No seller likes seeing their contract voided - unless the offer is low -- but it is part of the process and the sooner you sign the Release the sooner you'll be able to find other qualified buyers who are "ready, willing and able" to purchase.
Good Luck to You
Your buyer could void the contract on home inspection or HOA docs for any and no reason at all. If they show the company email about the layoffs, the lender will not be too eager to finance the purchase, either.
IF it makes you feel any better, once the contingency dates pass, YOU as the SELLER could also force the buyer to perform according to the contract .... in Virginia the law is such that even if the buyer passes away, his/her family is responsible for the real estate contract ....
If I were you, I'd be grateful the buyer let you know as soon they knew, instead of voiding the contract a few days before the settlement ....
Perhaps the buyer is on very good terms with the employer and asked him/her to send the email about layoffs because the buyer stopped liking the house, found another house, or just suffered from "buyer's remorse" .... it does NOT matter as long the buyer still had contingencies left that he could use to void the contract legally ....
Even if the buyer used already a home inspection and HOA docs contingencies - although I doubt since only 5 days passed since ratification - you could argue the buyer is artificially manufacturing a reason to get out of the contract, but is it worth your time and effort to play a DETECTIVE only to find out the buyer was HONEST???
No seller likes seeing their contract voided - unless the offer is low -- but it is part of the process and the sooner you sign the Release the sooner you'll be able to find other qualified buyers who are "ready, willing and able" to purchase.
Good Luck to You
- David Holland, "David Holland"
- Contributions:13
First and foremost I would always rely on the realtor representing you for their counsel. They advocate on your behalf with your best interest in mind. They can also direct you to a trusted attorney resource if there are further questions to the contract.
I do think the buyer is trying to make a good faith effort in his/her communications and not delay your property any further from a serious buyer/contract. The bigger question is - what is the inspection contingency language in your state? In our state (Oregon) - the buyer can terminate unconditionaly based on their non satisfaction - they do not need to specify a certain issue. If this is the case in Northern Virginia then the matter is mute. You could technically hold the buyer's feet to the fire but this will only penalize you and your property by losing critical marketing time and gaining a new contract. The buyer will still be able (if your Real Estate contract allows in your state) to terminate the contract at point of inspection and have their earnest money released. I hope this helps. Good luck on your sale.
I do think the buyer is trying to make a good faith effort in his/her communications and not delay your property any further from a serious buyer/contract. The bigger question is - what is the inspection contingency language in your state? In our state (Oregon) - the buyer can terminate unconditionaly based on their non satisfaction - they do not need to specify a certain issue. If this is the case in Northern Virginia then the matter is mute. You could technically hold the buyer's feet to the fire but this will only penalize you and your property by losing critical marketing time and gaining a new contract. The buyer will still be able (if your Real Estate contract allows in your state) to terminate the contract at point of inspection and have their earnest money released. I hope this helps. Good luck on your sale.
- Ofe Polack, "Ofe Polack"
- Contributions:3374
When situations like this occur I try to play devil's advocate. The buyer is doing the ethical thing by giving you notice that his employment is at risk. Now it is up to you and your Realtor to come to a decision on the escrow deposit. How many days after signing the contract does a buyer have in Virginia to cancel it and get his escrow deposit back? If it is 5 days and he cancelled within those 5 days, he gets the deposit back?
- Carmen Gill, "Carmen Gill"
- Contributions:90
This is something you should discuss indepth with your Realtor. Be glad it wasn't five days before close. It sounds like the buyer is trying to do the right thing by putting you on as quick as notice as possible. All parties must agree to the terms of the Release before any monies are disbursed. Good Luck!
- wetdawgs
- Contributions:39536
You need to talk first with your agent and then with an attorney.
When I've signed mortgage documents, I've been required to sign a statement that nothing has changed in my finances since application. The potential buyer has had a major change in that there is no secure income, therefore, would not be able to sign that statement. It seems as if the buyer is ethically doing the right thing rather than getting to closing and not be able to sign due to changes beyond his/her control.
When I've signed mortgage documents, I've been required to sign a statement that nothing has changed in my finances since application. The potential buyer has had a major change in that there is no secure income, therefore, would not be able to sign that statement. It seems as if the buyer is ethically doing the right thing rather than getting to closing and not be able to sign due to changes beyond his/her control.
Buyer backed out due to possible layoff/fear of not being able to afford payments. Earnest $ ?
There is a financing contingency addendum (FHA loan) that I'm trying to understand, which basically says that the buyer had a financing deadline, in addition to applying for financing w/in 7 days of the contract ratification. The contingency would stand until settlement date if the original financing deadline had passed. This part confuses me a bit if it's at all relevant to my situation.
Am I entitled to the earnest money deposit?
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