Home Selling in West Jordan>Question Details

Kfluck, Home Seller in West Jordan, UT

I am selling my house. Today is closing day. The buyers just backed out. What legal recourse do I have?

Asked by Kfluck, West Jordan, UT Mon Jun 29, 2009

The issue does NOT appear to be bankrelated. So funding is there.

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7
Ya know K, unfortunately I have had my share of couples thinking that a home would solve marital problems. Had one not too long ago that the husband bought the wife a house trying to make her happy and she ended up moving out within a month of closing. He ended up selling it short because he couldn't afford the home alone. Ruined his credit and he Still had a divorce. Bad for everyone.

I know this is frustrating for you, especially if you have put another home under contract, and it was unfortunate that the buyers agent was not more forthcoming by emailing instead of calling and communicating with your agent. I am sorry to see you go through this, I hope you will have a new buyer quickly.

Debbi Love
0 votes Thank Flag Link Mon Jun 29, 2009
Hello "K",
I agree, this is probably just an excuse but the best advice and the same I would offer was given by Cheryl Lyon.
I am sure you can relate that buying or selling a home is a huge emotional roller coaster. Unfortunately you now get to go for another ride, but you have representation. Your agent & their principle broker work for you & should be able to explain all of your options & help you through this issue.

I hope that you can get past this speed bump quickly & find another buyer for your home.

Good Luck!

-Kris Furrow
Web Reference: http://www.ListedInUTAH.com
0 votes Thank Flag Link Mon Jun 29, 2009
Yes. I am using a realtor and the wording in the contract is as it appears below. The buyer's agent apparently found out today and was blindsided by this (not sure how she found out but my agent found out via an email) as everything had been in underwriting as of Friday afternoon in order to meet the settlement deadline of today. The loan was a go and there doesn't appear to be any financial setbacks. There is speculation by the agents that it's a marital problem which seems odd to me because why would someone with marital problems attempt to buy a house? Marital problems don't seem to crop up over the course of a weekend.
0 votes Thank Flag Link Mon Jun 29, 2009
First, are you using a Realtor? If you are, then you have used the new Utah Real Estate Purchase Contract and your Realtor should help you apply the following section. This would be for anything BUT loan denial.

16. DEFAULT.
16.1 Buyer Default. If Buyer defaults, Seller may elect one of the following remedies: (a) cancel the REPC and retain the Earnest Money Deposit, or Deposits, if applicable, as liquidated damages; (b) maintain the Earnest Money Deposit, or Deposits, if applicable, in trust and sue Buyer to specifically enforce the REPC; or (c) return the Earnest Money Deposit, or Deposits, if applicable, to Buyer and pursue any other remedies available at law.

If the buyer faced loan denial, or was not satisfied with the loan Terms under section 8.3b of the Utah Real Estate Purchase Contract, you would be entitled to the earnest money and nothing else, if you are past the deadline for loan denial.

If you are selling by owner and have not used the REPC, then what ever your contract says is what you are entitled to.

This is a frustrating situation for you... I AM sorry. I hope it works out better for you in the future.
Debbi Love
debbi@saltlakehomefinders.com
http://www.saltlakehomefinders.com
0 votes Thank Flag Link Mon Jun 29, 2009
That is a tough thing to happen.

Utah's new Real Estate Purchase Contract has specific protections for both the buyer and seller. Check with your Realtor to learn and understand how your specific contract was structured. They can then give you the guidance you need.

Cheryl Lyon
Coldwell Banker Residential Brokerage-Utah
801.633.6855
cheryl.lyon@utahhomes.com
0 votes Thank Flag Link Mon Jun 29, 2009
K
What did your Realtor say?

This is not legal advice. For legal advice see an attorney.

My guess is that they could be sued for "specific performance", meaning that they signed a contract to purchase the property, so they need to "perform", which means take title, and have their lender pay you.

The only reason of which I am aware is if there were some significant change in the condition of the property before closing. My favorite story is about a buyer that did their closing inspection and found that the hotwater tank had broken, flooding the house, and ruining the wood flooring. That accident would certainly be grounds for cancelling. In this case the seller had the flooring repaired to the satisfaction of the buyers and the purchased was delayed, but eventually closed.
0 votes Thank Flag Link Mon Jun 29, 2009
Keith Sorem, Real Estate Pro in Glendale, CA
MVP'08
Contact
Just curious but do you know why they backed out and how did they inform you that they were backing out? Phone call? Email? Letter? Are you working with a real estate attorney at all? If not, it may be in your best interest to contact one.
0 votes Thank Flag Link Mon Jun 29, 2009
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