Home Selling in Hawley>Question Details

K, Home Seller in Hawley, PA

Buyer didn't like the interest rate the bank offered...

Asked by K, Hawley, PA Fri Mar 28, 2008

so they asked to be let out of the contract after already stalling the closing. Are we entitled to any of the 16,000 they put down when they agreed to buy the house? I live in Pa.

Help the community by answering this question:



You must check the contract.

Also, the buyer has to agree in writing to release the money. See how hard it can be?

You will probably need to litigate or arbitrate. Lean on your agent and an attorney for details.

Good luck,

Web Reference: http://fredglick.com
0 votes Thank Flag Link Thu Feb 16, 2012

Having had licenses in multiple states and multiple real estate boards I can tell you that the terms of the purchase contract and the remedies for non-performance vary with each state and area within a state and possibly among different brokerages within the same board of REALTORS®. This is a question you need to discuss with your REALTOR® (you do have a REALTOR® don't you?) since the laws and customs vary so widley. You might also want to speak to an attorney

Now here comes the scam run by buyers on un-represented sellers. They want to buy the property, the owner has no idea how to complete a purchase contract but that's no problem the buyer has his own. They agree and sign the contract. They use variations of the delay tactics and the deal fails. The owner is beside themselves. What they thought was a done deal is now a NO deal. The parties go their separate ways and the house goes back on the market. A few days later a new buyer appears (an undisclosed partner of the first), offers considerably less than the house is worth, the seller has now becomes desperate and accepts.....the deal closes, the seller is disappointed but glad it's over with and the buyer(s) have once again committed legal larceny. I have seen this scam run over and over when there are no REALTORS® involved and it's a shame.

JD “Dan” Weisenburger, GRI
Broker-Associate REALTOR®
Vanguard Realty, Inc. GMAC Real Estate

JD “Dan” Weisenburger, GRI
Broker-Associate REALTOR®
Vanguard Realty, Inc. GMAC Real Estate
Web Reference: http://www.neflahomes.com
0 votes Thank Flag Link Fri Mar 28, 2008
I do not know the local law in your area (disclaimer).
Normally in the purchase of a property the terms are in favor of the buyer. There are contingencies such as loan approval, loan qualification, property appraisal, Natural Hazard disclosure, etc. During that time frame that status of the home is still "Active". In our MLS we use the phrase "Back Up Offers". We have an accepted offer, but the buyer has not yet removed their contigencies and they might back out.

As long as the buyer backs out before the contingency period expires, generally there is no penalty. In my view the penalty phase occurs when you take your home off the market because you are in escrow (meaning the contingencies have been removed). So the status shifts to PENDING, most Realtors will not show a PENDING home because the understanding with Realtors is that the home will in fact "sell".

In that case I think you could prove damages. Normally once the contingencies are removed, only an unusual circumstance can derail an escrow. ..a bad inspection report, buyer loses his job and no longer qualified for the loan, something like that.

I hope this is helpful.
0 votes Thank Flag Link Fri Mar 28, 2008
Keith Sorem, Real Estate Pro in Glendale, CA
If the buyer could not fulfill the percentage rate stated in the loan portion of the contract???? No. If all time lines were agreed to and followed by the buyer. If they buyer did not act within the time constraints of the contract??? Yes. Before earnest money can be dispersed, there must be a signed agreement between the buyer and the seller. If no agreement can be reached, the funds may possibly be turned over to a court of competent jurisdiction to make the decisions. This may take quite a while.
Web Reference: http://www.queencitygal.com
0 votes Thank Flag Link Fri Mar 28, 2008

Were they out of contract, because they exceeded the closing date as per the contract? Did they sign an extension to the contract? What were the provisions of your contract? Did the interest rate exceed the maximum allowable rate as stated in the contract? Do you have a realtor that is handling your side of the transaction? If so, what are they advising?

In a situation like this, best to have a local real estate attorney review the provisions of your individual contract, to see what it allowed. They can best advise how to proceed in your situation.

Best wishes to you in a tough situation,

Sandy Shores, Realtor
M & M Real Estate, Inc.
Residential & Investment
Brevard County
Florida's Space Coast
0 votes Thank Flag Link Fri Mar 28, 2008
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