Profile picture for ckrishal

The seller is refusing to sign termination of contract

Hi,
I made an offer to purchase a single family house in Wisconsin. This house is on short sale. I had a short sale addendum to back out with in 21 days if the seller does not get back to me with in 21 days with all the agreements and other documents signed by the lender. It has passed 21 days and hence I decided to terminate the contract. But the seller is refusing to sign the cancellation.

What should I be doing?
  • August 28 2011 - Brookfield
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Answers (7)

Did he execute the addendum?
  • August 28 2011
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Do you a deposit in escrow?  If escrow has your money, and seller refuses to sign, you will be forced to take seller to court or arbitrqation
David Cooper
  • August 28 2011
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Profile picture for craigfial
Sorry to hear you having a bad experience.  Short-Sales are difficult enough and dealing with an uncooperative seller does not make it any easier.

I hope you're speaking with your agent.  Your agent should be the point of contact and they need to have dialogue with the sellers agent to ensure you are relieved of this obligation.

Make sure you read all of the executed documents to see if there are any deficiencies, either you or the seller may have missed a signature or initials.  Basically makes the contract NULL. 

If you have a deposit posted somewhere, contact the escrow agent and inform them based on contract conditions, you are exercising your right to cancel and want the deposit returned within 3 business days.

There is really no reason for the seller to not execute the cancellation unless there is something you left out of the question that would lead them to believe the contract is still in effect.

When all else fails, contact an attorney and have them write a letter to all parties informing them of your position and remedy.

Good luck, I'm sure it will work out.

Craig Fialkowski GRI,CDPE
Palm Beach, Florida
  • August 29 2011
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I suggest that you contact an Attorney who handles residential real estate matters ASAP.  Depending upon the wording of the Addendum, it is possible that you don't need the Seller's signature for you to walk away from the transaction.
  • August 29 2011
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Depending on how the contract was written, you may be in breach of contract if you back out. The consequence may be that you relinquish your earnest money. Do consult with an attorney to verify your rights.
  • August 29 2011
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Profile picture for Keith Bennett
Why did you change your mind?  If it is because the bank is moving slow, dont let that get you down.  They do it to everybody. 

If it is for another reason.  What does your agent say?   If your agent does not know, take it to the broker.  If that does not work, take it to an attorney. 

That is the official response.  It sounds as if you do not have a contract yet, so that could mean that sending over paperwork saying that you with draw your offer may just work.
  • August 29 2011
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(1) Double check the contract.  Is there something you're missing with the 21 day contingency?
(2) Write a letter to the seller (which can be delivered through your agent) about how you are truly in need of the funds that are currently in deposit with escrow.  Explain how you had intended on purchasing the property, but x,y,z circumstances are in the way.  Make it sympathetic.
(3) If all else fails, talk to an attorney.  Even a simple letter from the attorney might make things move.

Good luck!
  • August 30 2011
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