Home Selling in Tucson>Question Details

elluiscruz, Both Buyer and Seller in Tucson, AZ

I am selling my home and i accepted offer, they opened escrow, buyer did inspection and he cancel three days later, what happens next?

Asked by elluiscruz, Tucson, AZ Tue Mar 19, 2013

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8
The earnest money will most likely be returned to the buyer, if they cancelled during their inspection period. The Title Company where it should have been deposited functions as the neutral party, and determines the disposition of earnest money according to the contract terms.

Kat Tyree, Long Realty
520-730-5540
1 vote Thank Flag Link Sun May 26, 2013
Most likely the earnest money will be returned to the buyer like Kat Tyree mentioned in her post. Before that can happen everyone has to sign a cancellation of purchase agreement. At that point you can put your house back up on the market available-for-sale. Please keep in mind depending on what you found out about the inspection and why the buyer canceled you have an obligation to disclose anything new you learned about the home to any future buyers. You going to want to consult with your real estate agent. The bigger question I have is why are you posting a question like this? Your agent should have already gone through all of this with you. Your agent should be there to help you through all of this and explain all of your choices.


Best of luck,
Tom
0 votes Thank Flag Link Mon May 27, 2013
What would happen next is that escrow would be cancelled (Title co likes mutual acknowledgement), and the earnest monies would be refunded to the buyer. In AZ, our inspection period can vary, but generally they are 10 days after an agreement. You can ask your agent to find out the reason for the buyers' cancellation...Does that help you?

Thank you,
Evan Harris
Experienced REALTOR
For a FREE Home Buyer's Guide go to http://goo.gl/232cm
Coldwell Banker Residential Brokerage
11165 N. La Canada Dr., Ste.175
Oro Valley, AZ 85737
evancharris@comcast.net
520-481-2580-direct
0 votes Thank Flag Link Sun Mar 24, 2013
Hi - these answers all sound very appropriate and correct. Go back and read the contract to see what rights either Buyer or Seller has pertaining to your situation. Best of Luck!
0 votes Thank Flag Link Wed Mar 20, 2013
I am not sure about AZ but in CA they may back out for any reason within 3 days of the home inspection and they do not have to state a reason. At least they did not drag it out for 2 months, sign the release and sell your your home to someone else.
0 votes Thank Flag Link Wed Mar 20, 2013
Most buyers and agents are willing to share the home inspection with the seller. It sounds like your buyer got "cold feet" for some reason. It might not have anything to do with your house. It would be nice if the selling agent would give you a reason why they backed out but he/she is not obligated to do so.
0 votes Thank Flag Link Wed Mar 20, 2013
If the buyer cancelled within the terms of the contract--sounds as if that's what the buyer did--then it's just as if you'd never received or accepted an offer. You put the house on the market again, and try to sell it.

However, if the inspection uncovered some real problem (and it wasn't just "cold feet"), and you've received a copy of the inspection report, you now probably must disclose the problem to new buyers. (That can vary, depending on your state requirements, what the problem was, and other factors.) But, for example, if the inspection uncovered mold or faulty wiring that you weren't previously aware of, you most likely have two choices: (1) disclose the known problem, or (2) fix the problem.

As your Realtor for more details.

Hope that helps.
0 votes Thank Flag Link Wed Mar 20, 2013
Don Tepper, Real Estate Pro in Fairfax, VA
MVP'08
Contact
Sounds like your buyer had cold feet. If the buyer cancelled within the inspection contingency period, then his agent will have to send over a cancellation form to you. Once you sign and send it over, escrow will refund back any deposits the buyer had made and you can sell the home to anybody else.
Web Reference: http://www.archershomes.com
0 votes Thank Flag Link Wed Mar 20, 2013
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