Home Buying in Riverhead>Question Details

E W, Home Buyer in Riverhead, NY

Seller refused to honor contingencies in offer come contract time...can I warn other potential buyers?

Asked by E W, Riverhead, NY Thu Jul 3, 2014

Seller agreed to our offer that had a couple of contingencies. After paying for inspections, the contract that the seller's lawyer sent to our lawyer was missing one of the contingencies that was written out in the accepted offer. When we put the contingency in the contract, seller refused to sign. As the contingency was a a deal-breaker for us, we jumped through all sorts of hoops/options, none of which would get the seller to sign. Thus, we are walking away from the deal but out over a thousand dollars for the inspections, lawyer, etc.

I understand that those fees are the cost of doing business. Having said that, is there a way to warn future potential buyers so that they don't get burned in a similar manner by this seller?

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Answers

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Sorry to hear that your transaction didn't go through, but If the attorney missed a contingency, I don't see how it can be the sellers fault. It is VERY IMPORTANT to go over the contracts with the attorney whether you are the buyer or the seller. Not only that, but good communication between all parties is key. I had a homeowner look over their contracts before they were sent out to the buyer's attorney and there was a correction that needed to be made.
Once there is an accepted offer, it is usually contingent upon the home inspection. I have never been involved with a home being in full contract and the home inspection was done afterwards. Maybe each state is different.

My warning to buyers and sellers would be to make sure the Attorney is a Real Estate Attorney that is familiar with the Township you are purchasing the home in, that you read over the contracts before signing them and to make sure that if there are any contingencies, they are written in the contract.
The Realtor(s) involved with the transaction should have open communication with the Attorneys unless their is a unique circumstance.
0 votes Thank Flag Link Mon Nov 24, 2014
As the others have said, home inspections should be scheduled after you have an executed contract, not before -- the one exception I can think of would be if you are bidding on a REO (bank owned) foreclosure property and the terms of sale state no inspection contingencies will be allowed in the contract.

Your agent should make sure that any offer you make has an Inspection Period written into the contract terms that allows you to have any and all inspections you deem necessary. The contract should also state what your options are should you find the results of the inspections to be unacceptable.

Hopefully you will have better success with your next offer.
0 votes Thank Flag Link Fri Nov 21, 2014
" the contract that the seller's lawyer sent to our lawyer was missing one of the contingencies that was written out in the accepted offer"

As I read it, technically since this was not in the actual attorney accepted offer and your attorney did not catch it before proceeding forward.. sounds like they had a way out -or- did not agree with your terms of the contingency and the balked. So, really no reason to bad mouth the seller.

Good Luck.
0 votes Thank Flag Link Thu Jul 3, 2014
Okay, my misunderstanding of the process. We were asked to schedule the inspection before being asked to sign the contract. Our bad for not learning that inspections are typically done after contract is signed.

Thanks for the quick reply!
Flag Thu Jul 3, 2014
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