How are you? I hope the loss of your contract hasn't caused you too much stress. I say, chalk it up to a lesson learned. Everything in life happens for a reason so I'm sure there's a better place with a better deal waiting for you right around the corner! In the spirit of this Thanksgiving holiday, count yourself fortunate that you're even in a position to buy a home & move on. Remain positive :-)
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The seller had a contingency clause in the purchase contract stating that they have to find another house to buy/move in. by Dec 20th, 2012. - which was set to be the Closing Date. The had a maximum of 4 months to do that. After 3 months the told our attorney that they want to default on the contract. "
The seller obvoiusly had an out. Th ere is no "pain and suffering" on your part as the you agreed to the terms. I am betting it read more like, a contingency that "the seller find suitable housing" They did not or could not find suitable housing.. you are out. period.
"They are willing to pay our financial expenses" You should be happy with that! what did you really do? As noted, you waited for a house that "could" have been sold to you.. it was not. be happy with the expenses.
Find another house. deals fall aprat all the time without any compensation t anyone not looking to pay their attorney to enter litigation and in this case, even your attorney is telling you you do not have a case.
A decent and competent buyer agent would have advised you to counter to any seller contingency with a compensation clause. Realize though that unless an agent is also an attorney, they aren't qualified in any manner to write a contingency. Contingencies must be enforceable in court (or mediation if you choose that) and the only people qualified to write such a contingency is an attorney.
I know some agents will say they write contingencies all the time. Few are challenged so they get away with it if everything goes smoothly. If they don't your position is very precarious.
Before you ever write an offer or accept a counter, have your real estate attorney review it and give you a read to make sure you are't giving away something you'll regret if things don't go right.
Every contingency can have a compensation clause to provide you with relief if the other party doesn't perform. Most buyers don't add compensation to seller contingencies for fear of losing the house. Not so. When buyers start insisting on controlling their home purchases then these things will change.
Tom Brady SFR, e-PRO, SRES, GREEN, BPOR
Licensed Real Estate Salesperson
Notary Public, Retired N.Y.P.D. Lt.
#1 Listing & Selling Brokerage in NY
Charles Rutenberg Realty, Inc.
255 Executive Drive - Suite 104
Plainview, New York 11803
Sorry to hear about your loss! As others have stated a sharp buyers agent or attorney would have warned you about the â€œfinding another house contingencyâ€ and if you had your heart set on it recommended some sort of penalty if they didnâ€™t find another home in time. Though Iâ€™m not sure how that would have worked unless they were already in contract on the new home -but in any case I am not an attorney and cannot give legal advice. As it can take months these days to close on a home that needs financing and even longer to find the home of your dreams, I suspect you bought this house from the listing agent?? Maybe they also recommended the lawyer you used?
I guess you are lucky that they backed out in 3 months rather than four. The good news is that after the holidays in the dead of winter you might get yourself an even better deal as many people get fed up with the weather when itâ€™s cold and decide to move somewhere warmer..
Something similar is an issue here in Manhattan when there is a tenant in place and I find the listing agents always assure you the tenant will move out when the apartment is sold.. When finding condos and coops for buyers I will tend to avoid those with a tenant in place because in NYC, it can be very difficult to get a tenant out that doesnâ€™t want to leave..Do consider getting a local buyers agent in the future (I believe some have answered your question here)
Best of luck to you in the future!
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I have no doubt that the trasaction was a "pain" for you..but you will not be able to be compensated for it. There is no way to force a sale if the owner changes their minds. You will have your Good Faith deposit returned and hopefull, you will do better next time around.
The seller had a contingency clause in the purchase contract stating that they have to find another house to buy/move in. by Dec 20th, 2012. - which was set to be the Closing Date. The had a maximum of 4 months to do that. After 3 months the told our attorney that they want to default on the contract.
They are willing to pay our financial expenses but nothing for the time we've waisted by waiting and not looking at other houses. It seams unfair to me..that's why I want to ask if anyone had a similar case.
My attorney is saying that we need to get the down payment and the expenses back and not worry too much about the pain and suffering we've experienced with the deal falling through.
Thanks again for all of your help!
You could always speak to another attorney but there's no reason to assume you'll get any different answer. Asking for help online isn't going to really help you. There's at least two sides to every story and my guess is the Seller has a differing perspective on things. Without knowing all the details no one on Trulia is going to be able to give you a really detailed cogent answer.
No one likes a prolonged contract period BECAUSE stuff happens.
The sound bite provided unlikely tells the complete story.
This appears very much like the event I recently experienced. The buyer, having waited patiently for many complications to be resolved with a waterfront condo, communicates they are going to gut the place and start over with the creation of the place of their dreams. Not uncommon.
However, the opportunity I arranged for them have access and measure for the coming renovation, turned into an Uncle Bill inspection, which they felt was a good time to begin new negotiations and make a few demands. The seller was waiting for just such an opportunity. NO SALE! Instead the buyer in effect paid a penalty. The seller moved to a much, much better deal.
Moral to the story: It's no longer a buyers market in Palm Harbor Florida. Take care before starting new negotiations.
So, tell us the full story.
Perhaps a consultation with another attorney might prove interesting.
I would be happy to provide you with two of the finest I know...give me a call or email me.