Home Buying in Mobile>Question Details

jan2503, Home Owner in Cleveland Heights, OH

Mutual release, earner money. Ohio. Buyer cannot close

Asked by jan2503, Cleveland Heights, OH Thu Apr 25, 2013

The Deal: Selling my home in Ohio. Price was agreed on 3/12/13, cash, with closing on 4/10. Later, Buyer requested extension to 4/24/13 because he could not get the his funds. Seller agreed and signed. Seller has complied with repairs, Buyer has signed off on that. On 4/23/13, Buyer requests another extension to 5/8/13. Seller disagrees. We are 1 day past the closing, ans there is no news from Buyer.
Problem: Best time to sell is Spring, and there is not saying if Buyer will come up with money or not. Also Buyer delays their answers unreasonably long (drags feet).
Seller has already accepted extension once. Seller wants the agreement terminated by mutual release (clause in the purchase contract signed by both) and wants to retain the earnest money $1000.
Q: what happens if the Buyer does not sign mutual release?

Help the community by answering this question:


Didn't the Seller verify Buyer's funds before accepting initial contract?
Sounds like Seller needs to call an attorney.
1 vote Thank Flag Link Thu Apr 25, 2013
I think this makes most sense. My broker from Howard Hanna did not verify these funds. The Buyer's broker, also HH, did not do so either. The Buyer's broker was aware of the funds issue. They are still dragging it. My broker's take: (1) I cannot get the earnest money unless Buyer agrees or I sue, (2) I may not accept another offer unless Buyer agrees to sign mutual release, (3) I should talk to a lawyer, (4) I am stuck with them. HH said they have never had such a case - BTW HH is a monopoly RE company in the Cleveland area.
I wonder, why would the mutual release clause be there if they do not know what to do with it?
What I think is that my realtor simply tries to hang onto straws because they try to avoid spending the extra effort to relist and market the property again.

What eventually we did: gave Buyer 24 hrs (which turned 48 hrs b.o. my Broker) to reply for an extension of 1 week (which will be 2 weeks due weekends), and we relisted as active.
Thank you all who replied!
Flag Fri Apr 26, 2013
This is definitely something you will want to discuss with your Realtor/Broker. Most contracts read "on or about" I'm assuming proof of funds were given at time of offer? Earnest money funds can be held indefinitely depending. When the extension was signed due to not being able to "get funds" was earnest money addressed and stipulated in that extension? Was there a deadline? Again, this is a question for your agent/broker as there are too many possibilities.

Cecilia Sherrard & Andrew Ginter
Web Reference: http://www.YouShouldOwn.com
0 votes Thank Flag Link Thu Apr 25, 2013
Thanks Cecilia,
the contract words it as "on or before". The proof of funds was an annuity on the name of his father. No stipulations in the extension, just the new date. I assume the deadline is the closing date 4/24/13. I am talking to my agent right now, but wanted to hear others' comments.
Thanks again,
Flag Thu Apr 25, 2013
You would need to consult with your Real Estate Agent on your options.
0 votes Thank Flag Link Thu Apr 25, 2013
Please ignore: I posted this question by mistake in the Mobile forum.
The actual location is Broadview Hts Ohio.
0 votes Thank Flag Link Thu Apr 25, 2013
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