Home Buying in 19044>Question Details

Lulu, Home Owner in Horsham, PA

Is there any recourse when a buyer backs out the night before settlement?

Asked by Lulu, Horsham, PA Thu Jun 28, 2012

The buyer, who is a real estate broker and was a complete nightmare to deal with on all levels, backed out via email. It is an HOA community and she said she could back out without penalty because she just got the resale info on the rules and regs and doesn't agree with some of them. My agent says she just got cold feet. She was a bully and condescending throughout the transaction and now this.

Help the community by answering this question:

Answers

3
As a real estate broker, my understanding is the Buyer is correct. The PAR agreement of sale plainly states a Buyer may void the agreement within 5 days after receiving the condo docs or settlement, whichever comes first. I point this contingency out to all my Sellers when selling a condo, so it does not come as a surprise to them if the buyer exercises this contingency. I would suggest you get an attorneys opinion as well since this really a legal question.
0 votes Thank Flag Link Thu Jun 28, 2012
Unfortunate situation. Can the buyer withdraw for the reason cited? Do you want the buyer to conclude the transaction? If not, is their potential to recover liquidated damages? Consult your agent and a real estate attorney to pursue remedies that more specifically address your situation. Good luck!
0 votes Thank Flag Link Thu Jun 28, 2012
There are often ways to get out of a contract and your agent is suppose to find and seal all loop holes ASAP to protect you. Getting HOA documents in the hands of a buyer is critical and needs to be done as soon as possible. You can talk with your attorney to see if everything was done correctly. Good luck.
0 votes Thank Flag Link Thu Jun 28, 2012
Search Advice
Ask our community a question
Email me when…

Learn more

Copyright © 2014 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer