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If a sale falls through due to lack of financing, who is to pay the sellers lawyer fee for preparati

  • August 02 2011 - Pembroke
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Answers (4)

Well, in my area, we routinely use attorneys for our closings. If a sale falls through for ANY reason, each party is responsible for paying their own attorney - that's it! Simple....and no, it isn't spelled out anywhere.

Each party hires their own representation knowing full well that  there is a risk the deal might not go through, whether it be for lack of financing, home inspection issues or any other contract contingencies. It happens.

The attorneys get paid for their time....alas, we don't!
:)
  • August 02 2011
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Yup, I agree with Mike too!
  • August 02 2011
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I agree with Michael. It should all be spelled out in the contract.
  • August 02 2011
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Unless there was specific language within the purchase agreement and ancillary documents that spelled out the buyers would be responsible for paying the sellers expenses should the financing not materialize, then the seller would be liable for their own expenses. Conversely the buyers would be responsible for any of their out of pocket expenses.

Everything (including any remedies) should be included in the purchase agreement.
  • August 02 2011
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