jenniferzuker, Home Seller in Tewksbury, MA

Michigan Home Sale Question - Expired Contract

Asked by jenniferzuker, Tewksbury, MA Thu Oct 24, 2013

We are the sellers of a home in Michigan, and have been waiting on the same buyer, since July 11. The buyer had two different loans fall through, and the third time, the buyer co-signed with a family member in order to qualify for the loan. We agreed to the buyer's request of another 30 day extension one month ago. Tomorrow, the contract expires. We now live in a different state from the home sale, and our realtor contacted us today to say that it will take extra time to mail the closing paperwork package to us, and would we agree to extend their contract through the end of this month (another 6 days). I responded to his e-mail and said No, we will not extend the contract that expires tomorrow. We are wondering if we could still be required to sell these people our home? Also, our realtor's contract expires at the end of the month. Our desire is to be done with this buyer, and allow our realtor's contract to expire, too, and take this house off the market for the time being.

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Answers

5
Hi Jennifer,

I'm curious to hear what happened with your deal? Did you get it closed?


Pam
0 votes Thank Flag Link Thu Oct 31, 2013
Hi Pamala,
We did not get it closed. The buyer needed more time and we did not extend the sales contract. Our realtor's listing contract expired shortly after that, and we found a new realtor who has it listed as a rental. We are hoping to rent our home through late spring/early summer, and then re-evaluate our options.
Flag Tue Nov 5, 2013
It is hard for us here to determine what can and cannot do at this time....
Your listing agreement with your Realtor/Brokerage has terms, just read them and see what you can do they should be very specific....As to the Buyer it is really a question for a local real estate attorney, are you using one? if not you probably should......I am also assuming that YOUR Realtor is your listing agent, correct?

In general
( and laws could be slightly different and also contract terms could be, and since we do not
have the extensions, nor the original sales contract in front of us, and furthermore we are as Realtors not permitted by law to give legal advice, you really need to look at your documents, get advice from a local attorney, OR talk to the Managing Broker at the office of your current Realtor, if you are uncomfortable discussing your wishes directly with your Realtor and come to a decision there.)
if and when a buyer can NOT produce the final written loan commitment from their lender at the
date indicated in writing in the original sales contract or any extension of that particular term in writing, the sales contract could be voided, but you must read the terms...
In most cases it is the buyer who will want to get out of the contract because they can not get the
loan and therefore can not fulfill their obligation concerning loan commitment....

But to be on the safe side get legal advice from a local real estate attorney.

On the other hand, it seems to me by what you tell us that these buyers are trying everything possible to get their loan, and really want to buy your home.... and since you have already extended the dates for the final written loan commitment letter from a lender, would 6 days now make such a big difference or are you afraid that at the end of the 6 days it will still not work out?

Hope all these thoughts help you a bit.
Sincerely yours,
Edith YourRealtor4Life & Chicago and Northern Illinois Expert

Working always in the very BEST interest of her clients, Buyers, Sellers and Investors alike....
And always with a SMILE 
Covering for @Properties the city of Chicago, all N and NW suburbs, the fine homes on the
North Shore, and many of the W and SW suburbs, and with her trusted Partner Agents all of
the US and worldwide properties. Edith speaks French, German, some Spanish and other.....
@Properties Brokerage, 30 Green Bay Road, Winnetka, Illinois 60093
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HAVE THE MOST WONDERFUL DAY :)
0 votes Thank Flag Link Fri Oct 25, 2013
My first question to your agent is do you have a clear to close. Tell your realtor to email you a copy of the documents so you can review them and to overnight the documents to you for signatures. You will need to get them notarized when you sign them unless they are sending a closer to handle the paperwork, then they would notarize them. If everyone works at it you can get this done in 6 days.. It is hard for me to believe you went this long but they must be good buyers. Maybe you are great seller!

If it does not happen, find a new buyer.
Is the Realtor representing you or the buyer or both.

Good luck
0 votes Thank Flag Link Fri Oct 25, 2013
P.S. Our realtor is only representing us.
Flag Fri Oct 25, 2013
Hi Pamala, I'm not sure if we have a "clear to close." Our realtor and listing agent e-mailed us yesterday to ask for a 6 day extension because he said mailing out the closing papers would take longer than a typical in-office, in-person closing. Because we have already agreed to two previous extensions, we refused to agree to this one.
Flag Fri Oct 25, 2013
Jennifer,

You would need to read your contract. Is it really in your best interest to deny the buyer an additional 6 days. You'll have to contend with either paying to keep the home heated through the winter, snow removal and the worry if the home is going to be broken into. Now that you're living out of state that's a lot to worry about. As an agent I cannot give legal advice. However, if the current extension expires tomorrow you are not obligated to extend and the contract would be null and void.

I wish you the best of luck!

Karen Paytas, GRI, CMS
Realtor
Real Living Kee Realty
586-709-8465
kpaytas@mirealsource.com
0 votes Thank Flag Link Thu Oct 24, 2013
Talk to your Realtor who knows the situation better. If you are not satisfied with the answer, you may want to contact a real estate attorney to determine what you are or are not required to do.
Web Reference: http://www.BrekSchutten.com
0 votes Thank Flag Link Thu Oct 24, 2013
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