Home Buying in Pleasanton>Question Details

calvincvu, Home Buyer in Bellevue, WA

Does seller has the right to terminate at any time for any reason with the "Seller's Right to Terminate" clause?

Asked by calvincvu, Bellevue, WA Sat Sep 15, 2012

I am in the process of purchasing a home and have the Purchase Agreement signed and Escrow Money deposited in Escrow. The closing date for the contract is 45 days after mutual agreement. It is now 30 after the the mutual agreement date and the Seller decided to terminate the contract based on the clause that "Seller's Right to Terminate at anytime after 21 days from Mutual Agreement" in the purchase agreement on the reason that we have not meet financial commitement. We have followed and meet lending application and guideline process and have Lender approval to close in the up comming week. Seller is impatient and want us to close now or terminate. Does seller has the right to terminate based on the clause? We have made moving plan and commitments to remodel the purchasing home that will cost us if the seller decided to terminate. Please advice.

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The seller can cancel with notice for lack of performance.  Your obligation as a buyer is to release contingencies and close on time according to the residential purchase agreement. If you feel you have met your obligations according to the agreement, than something may have not been communicated to the seller.  Sit down with your agent to pinpoint the exact reason.  If its still unclear ask to speak with their broker/manager.  Once the precise issue is determined, develope a solution. Keep in mind, you are still able to renegotiate in situations like this, which may make it more appealing to the seller.

Best Regards,

Rocky

Rocky G.H. Hawrysz
http://www.TeamHawrysz.com
Prudential California Realty

"Committed to your success!"
0 votes Thank Flag Link Sun Sep 16, 2012
I'm reading this as you have not removed your loan and appraisal contingency and now the seller is saying you are in default and therefore given you a notice to perform, or will cancel the contract. You need to sit with your agent or his/her broker and understand what is really going on.
0 votes Thank Flag Link Sun Sep 16, 2012
I want to make sure we are talking about a California purchase agreements since this question is posed in home Buying in Pleasanton

The seller has a right to cancel in situations where the buyer has defaulted or has not met the obligations including clearing or signing off on your contingencies for buyer inspection, appraisal and loan approval.

You said the seller was cancelling "we have not met financial commitment."

DId you release your contingencies on schedule? Or are you late, and you have been served Notice to Perform but you didn't? In which case the seller has grounds to cancel

If you have an agent representing you, what advice is he giving you, considering you're from out-of-state?
0 votes Thank Flag Link Sat Sep 15, 2012
I am not familiar with the Washington State real estate contract but your agent certainly should be. I would be surprised if a seller can terminate a contract for "any reason". Is the seller trying to get you to close early? The seller cannot unilaterally change the terms of your agreement. I am not sure that we are getting the whole story. Your agent is your best resource. If you do not have your own agent that is a mistake.
0 votes Thank Flag Link Sat Sep 15, 2012
Wow, I hope you'all keep that clause to the west coast and don't let it come east. I have never heard of a sellers right to terminate, you can't do that around here. Once they sign --- they sell.
0 votes Thank Flag Link Sat Sep 15, 2012
I would ask you real estate agent or an attorney. In Washington State the purchase and sale agreements state that the seller can ask that the buyer waive their financing contingency and if the seller does waive that then the seller can't terminate however if the buyer can't obtain financing they will no longer have that contingency protecting them.
0 votes Thank Flag Link Sat Sep 15, 2012
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