Home Buying in 19119>Question Details

Seller1, Home Seller in Perrineville, NJ

Can seller legally terminate contract if he can't come up with down payment he promised to put down on contract for sale of Real estate?

Asked by Seller1, Perrineville, NJ Tue May 8, 2012

If seller promises to put down an amount of $255,000 then claims his bank has determined that he does not have enough assets to put down the amount he promised in the contract can he legally terminate contract?

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Answers

9
Yes the buyer can terminate, you can't force someone to buy your property.
The real question is can you keep the deposit you have and can you sue for any more. The answer to that is it depends. Were the contract terms met or has there been a breach. You need to see an attorney NOW. Many contract terms have time limits and notice requirements, see an attorney NOW preserve your rights.
0 votes Thank Flag Link Tue May 8, 2012
Seller 1,
Ana is right
IF you are not being represented by a Lic Realtor.... then YOU Should Seek a Real Estate Attny
Who, ever is holding 11k escrow earnest deposit..... You may want them to hold it until buyer reveals proof of eligibility to purchase IN WRITING.
I wish you the best to get this resolved and Move on


John Curci RE/MAX
0 votes Thank Flag Link Tue May 8, 2012
1. Do you have a agent representing you? You need one.

2. If you do not have an agent I would advise you to seek the assistance of an attorney.

3. If the buyer is not able to meet the agreed upon fiscal benchmarks set forth in the contract than the contract may be void. I would need to read the actual contract to make that determination. Depending upon your agreed upon terms there may be some outstanding financial questions.

4. You need a representative. Now.

Ana Barlow
The Barlow and Birdsall Group
Keller Williams Realty - Center City Philadelphia
anabarlow@gmail.com
0 votes Thank Flag Link Tue May 8, 2012
I am the seller. Written real estate contract
Buyer puts down $11,000 deposit. Total amount of $255,000 required as per contract.
Contract has a mortgage contingency of $600,000.
Buyer applies for $684,000 instead of $600,000.
Buyer states his mortgage company determined that he does not have assets to put down $255,000.
Buyer states that mortgage company would not allow $600,000 since they determined that he can't put down $255,000.
My contension is that buyer agreed to Deposit of $255,000.This amount is not a contingency.
He promised to put it down.
If buyers are allowed to claim that mortgage company determined that I do not have the downpayment after they promised to apply a certaim amount ,then every potential buyer can easily get out of the contract by convincing their mortgage company of their lack of assets.
0 votes Thank Flag Link Tue May 8, 2012
This is a bit complicated. If you are stating that you can't come up with the balance of the down payment and you have already gotten the specified mortgage amount you could feasibly lose your initial down payment. You should definitely consult an attorney immediately
0 votes Thank Flag Link Tue May 8, 2012
Do you mean Buyer come up with Down Payment?

Not Sure which party you are referring to?

John Curci RE/MAX 215-757-2889

http://www.homecatch.com/search_homes
0 votes Thank Flag Link Tue May 8, 2012
Correction, you mean a Buyer?
Was there a contract or a verbal agreement?
Is there a Mortgage contingency?

Alexander Shulzhenko
Realty Mark Cityscape
267 738 0886
http://www.eRealtyFind.com
0 votes Thank Flag Link Tue May 8, 2012
Hi Seller 1:

You question could probably use some additional information.

When two parties enter into a contract for the sale and settlement of a property there are contingencies that must be met. Should either party fail to meet the contingencies within the agreed upon time frame the contract is then void.

Parties can mutually agree to terminate a contract. However, reading your question I am wondering if you are dealing with a sale and settlement contingency for a second piece of property.

I think you should reframe the question with more clarity.

Please also note that under the law realtors are not permitted to provide legal advice - for that one needs a lawyer.

Ana Barlow
The Barlow and Birdsall Group
Keller Williams Realty CC

anabarlow@gmail.com
0 votes Thank Flag Link Tue May 8, 2012
It's all part of the mortgage contingency. If bank won't give him mortgage, he can back out.

When in doubt, contact a real estate attorney. Your Realtor should be able to recommend a couple.

Hope this helps.

Eric Axelson, Associate Broker
Kurfiss Sotheby's International Realty
267.507.2287 d
axelson@kurfiss.com
Web Reference: http://kurfiss.com
0 votes Thank Flag Link Tue May 8, 2012
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