Home Buying in 01505>Question Details

Achauhan, Home Buyer in 01505

Primary Buyer not signing release letter

Asked by Achauhan, 01505 Thu Apr 8, 2010

I put a back up contract in and waite. The Seller eventually issued a kickout clasue to the primary buyer, he said he had financing. However 3 days later the FHA loan got denied. The Sellers agent made me the primary contract but the other buyer would not sign the release and now he wants to try to obatin a different loan. My offer has no contingencies and the sellers want my offer. The Primary buyer says he shoudl have more time even though he had over a month. The Sellers agent is askinga Lawyer. Does anyone have any advice?

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Answers

5
Have an attorney review the contract to determine what rights, if any, you have.
1 vote Thank Flag Link Thu Apr 8, 2010
If the first contract has past it date for mortgage contingency he/she is not entitled the deposit money back but the contract is still enforceable until the closing date unless there was a clause stating that the contract would be void without financing.
Web Reference: http://www.mdmrealtyinc.com
0 votes Thank Flag Link Thu Apr 8, 2010
Do you have a real estate attorney? Were you planning on using one? I recently worked with one that was based out of Worcester, I'd be happy to share the contact.

The basic thing is ... don't get yourself involved with the primary buyer ... you are only dealing with the seller. Given the potentially complexity of this transaction, all the more reason for you to have a real estate attorney representing your best interests. It's always advised to have one in Massachusetts anyway.

Good luck!
0 votes Thank Flag Link Thu Apr 8, 2010
Gerard and Fred are both right- there are a lot of possibilities, and a lot of ways to interpret a contract, but the only safe thing to do is wait and see what the lawyer says. Better to take a little longer and be on solid legal footing than to put yourself at risk...
0 votes Thank Flag Link Thu Apr 8, 2010
Depending on how the wording is in the contract, the Seller can terminate the contract due to the Buyer's inability to obtain financing.

In that case, the Buyer has no rights to the property and the Seller can accept your offer.

The only thing is the buyer getting his deposit money back since he violated the contract.
Web Reference: http://fglick.com
0 votes Thank Flag Link Thu Apr 8, 2010
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