Sorry that I've been out for a while, so I didn't see you posted another question.
Well, if you are determined to cancel the sale of your house. You need to SPEAK with your real estate profession. Explain the reason to her and ask her for the best advice. Do not let the buyer's go through the motions of buying a house but knowing that they will not get the house at the end. That's really CRUEL. Put yourself in their position. If the buyers back out on you at the last minute the escrow is going to close, how would you feel about it? Just be honest and I think you can get out of your situation. Rebecca is right about we are not 100% clear of your situation because we are not involved in your transaction.
If you are hesitating to call a real estate attorney, maybe have your realtor to call CAR LEGAL first. It's free and they are usually very helpful!!
If you do not follow property procedure and you do end up cancelling, you could open yourself to a lawsuit and a possible lean on your home, this could prevent you from ever selling it. or taking a loan out against it. This also could be much more expensive for you than just selling.
You have to remember in this forum, it is just advice from persons who are not involved in your deal and do not have the facts and details. Many of the agents giving you advice are new or from other states where there are different laws and regulations. You have already stated you do not have faith in your agent and we do not know if you have spoken with the Broker. One of the jobs of a great Realtor is to answer these questions and ultimately keep their clients OUT of trouble.
I am urging you to find and hire a Real Estate attorney immediately before a bad situation for you turns into a worse one.
If you need a referal, please ask..I'm sure you will be given many on this forum.
The plain and simple truth is that, even though you are in a contract to sell your home, there is no law in California that forces you to sell the home. In fact, especially in extenuating circumstances such as you will be facing, you certainly have reason to cancel the contract. Just as the seller cannot force the buyer to buy the home, the seller cannot be forced to sell the home. I was recently in a similar situation representing buyers with a recalcitrant seller who three times threatened to pull out of the sales contract, and we learned quickly from attorneys that not only could the seller do this, there was no way, as buyers in California, that we could prevent it.
Your situation, however, is a complicated one. If your agent is representing both the buyer and you (the seller), then she is anticipating quite a huge commission at the end of the sale, and is not likely to want to support you in cancelling the contract. As a result, you will have to talk frankly with her about your situation and let her know, as soon as possible, that you cannot sell this home and will no longer be able to do so given a change in circumstances. I think you should also immediately contact an attorney and speak with them about the best manner to cancel the contract. Let the attorney know about the lack of extension and the contingencies, but the key here is to move very quickly. the sooner the better to get everything cancelled with as much time to the buyers as possible.
I think you should also prepare yourself that you will have to pay for costs incurred by the buyer for the sale--you will not be able to cancel the contract without suffering consequences. These costs would include:
1. Reports and inspections
3. Interest on their funds held in title
4. Fees associated with notary or expenses incurred or charged by loan officers in cancelling the loan
Also, you will be charged for title company expenses incurred in the sale, and must be prepared to pay for those too. I suspect that, in total, the the title and report costs should not exceed $5000, but check with your Realtor and attorney to determine what these will be.
If you choose to cancel, do it quickly so that you do not cause the buyers to suffer any further harm in hoping that you'll sell the home.
Good luck and talk with an attorney tomorrow!
Grace Morioka, SRES, e-Pro
Area Pro Realty
I would suggest you call your agent's Broker and ask to deal with him/her directly if you have lost faith in your agent to do as you ask. As someone else suggested, you can also consult a Real Estate attorney which is a great idea. A one hour consult shouldn't cost you more than a few hundred dollars and will likely save you a lot more in the long run, and at least give you peace of mind.
It is probably not the buyers who are dragging their feet, lenders are taking longer these days to process loans and if the buyers have provided the lender with all needed paperwork, they don't have the power to speed that process up.
Good luck, I hope it works out for everyone involved.
Sorry to hear about your dilemma. And I agree with Rebecca - your agent should be looking out for YOUR best interests. Unfortunately (or fortunately as the case may be), the buyer has many more options than the seller when it comes to canceling the contract and getting out o the deal. What is the reason for the buyers wanting to extend the escrow? Are they having problems getting their loan? If they are beyond their loan contingency time period and still have not removed the contingency, another idea would be to have your agent send the buyers a "Notice To Buyer To Perform" (C.A.R. form NBP), forcing them to remove the loan contingency within 24 hours, or you (the seller) has the right to cancel the agreement. This can be used for other contingencies besides the financing contingency as well, and at least it gives you some hope of getting out of it. Hope this helps, and good luck with your situation... Feel free to email me if you have any further questions.
Have a good night....
Coldwell Banker Residential Brokerage
Sherman Oaks, CA
Without knowing all of the details and nuances of what has entailed in your contract, you should probably talk to a real estate attorney who can look through your paperwork and see what has been signed and what has been said between the parties.
In general, there are sometimes contingencies on both sides of the sale those contingencies are usually to be performed within a certain timeframe. If either party does not withdraw their contingencies before the said timeframe, the other party does have the right to exit the contract unless otherwise stated. (In California, that is usually 17 days). On a seperate issue, if the end of the contract expires, and the buyers cannot close by the stated date and time, you should be able to cancel the contract unless it was otherwise stated in the contract. If this is the case, you need to ask your agent to cancel the contract/escrow. There is a form that you will need to sign authorizing this cancellation and your agent should be able to explain it to you.
Again, if your agent continues to give you issues and will not answer your questions, I would recommend you go to the broker and see if you can get your questions about your contract answered. If not, get a real estate attorney's advice.
Hope this helps. Good luck to you!
Axiom Real Estate / Axiom Lending Group
I am sorry to hear about your experience so far. You definitely can cancel the escrow but you will be responsible for the cost associated with the cancellation.
I think what you need to do is think about "What You Want." What was the reason for you to put your home for sale from the beginning? Does it worth to keep your house now? What will be the best for you for your situation.
I have heard about sellers backed out at the last minute (usually short sales) and buyers backed out at the last minute. But, think about what's BEST for you. I am not going to talk about the technicals because Grace, Rebecca, and Matt have already given you some VERY GOOD technical advices regarding to contingency periods and technical methods to get you out of the transaction. However, I believe you know by now that Real Estate Transactions are also very emotional and can be quite stressful sometime both emotionally and physically.
Think about what's BEST for you and TELL your agent what you WANT to do. Your agent works for YOU! I would do everything I could in my power to accomplish my clients' requests and I think she should, too.
BTW, if you really want to cancel the transaction, you should do it as early as possible. You don't want to give the buyers false hopes, either. My clients have been there and it's not a good feeling for anyone.