Home Selling in Tucson>Question Details

elluiscruz, Both Buyer and Seller in Tucson, AZ

Second ? Buyer canceled and I have not sign closure

Asked by elluiscruz, Tucson, AZ Wed Mar 20, 2013

But I have not sign closure on contract, but agent said everything was canceled and that the deposit wa s returned. We ( buyer and myself) are using the same agent

Help the community by answering this question:

Answers

11
If you went through a title company, I suggest you contact the escrow officer to see what was canceled and who authorized the return of the deposit without your consent.
0 votes Thank Flag Link Tue Apr 2, 2013
First, I would contact your agent and if he/she is not giving you a clear enough answer I would contact their broker to clear the air. To me, it sounds like you have not signed closing docs but would like to cancel the contract? I would be more than happy to help if you can give me some additional insight. Feel free to email me at your convenience.
0 votes Thank Flag Link Wed Mar 20, 2013
Sorry, but your question does not give enough information to formulate an answer. You definitely need to speak to your agent and/or his or her broker. Good luck.

David
0 votes Thank Flag Link Wed Mar 20, 2013
I do lending now , but used to be a realtor and I have sold maybe 70 or so homes over the years, here is what I would say to you. There are a number of factors to consider.
Were you harmed by it?
Can you collect?
Were they within their rights to back out?
So many people do not understand that when they back out like this that they may have actually harmed the seller financially, but the law recognizes that and makes allowance for you to be compensated. On the other hand the law allows protection for the buyers as well.
If you look at your purchase agreement you will see that there are several "contingencies." In other words, the contract allows the buyer to back out for certain reasons, if done in certain time periods. If the buyer is backing out based on a contingency and has met the time periods specified sign the release and move on they are entitled to their deposit back.
On the other hand if the buyer took too long to decide to back out, or if they are claiming a reason for doing so, is not specified in the contract, you may have cause to keep their deposit. On FHA and VA purchases I have been told you may not keep the deposit , but they may not know that, so often people keep these deposits anyway. If they contact FHA or VA they will step in and ask for the deposit to be returned.
So you may have cause to keep the deposit and maybe even collect for damages if they went over the contingency period or are backing out for a reason not specific in the contract. In most states buyers are also allowed to back out on any new information. So if there was a disclosure that the house was built on a toxic waste dump a day before closing, they buyer can back out and keep their deposit. That is why when I used to list homes, the buyers got all of the disclosures as soon as the ink was dry on the contract.
The problem is trying to collect may create a cloud on your title that could stop you from selling the house to someone else.
Also the buyer may not be at fault. I see most of the time this problem is caused by lenders who simply do not understand that they must have the appraisal done on time, they must have the loan approved, on time and must close on time. They do not seem to understand the extent of the problems that they cause by it.
So here is the advice, If they are within the contingency periods, let it go. Also you should be a bit more forgiving if the problem was the lender as most simply do not get it. On the other hand if they just drug their feet, they are way past their contingency period, you may want say that is the case and try to collect the deposit. More so if you were actually harmed; let’s say you put down a deposit on another house that was non-refundable. But even taking your house off the market may have caused you harm.
If you were harmed maybe they should lose their deposit, on the other hand if you spend your time fighting these kind of battles you will not be moving on to the business of getting your house sold.
0 votes Thank Flag Link Wed Mar 20, 2013
This is a question you need to be discussing with your Realtor since agency has been established. If you don't like, or trust their answers, call the office and speak with their DB or Associate broker.

Demand is increasing, inventory is down. I am seeing many offers come and go, get cancelled as buyers are changing their minds.

Talk with your agent, best of luck.

Spirit
0 votes Thank Flag Link Wed Mar 20, 2013
The Buyer's offer has several contingencies. They may not have qualified for their loan, the house may not have appraised, they may have not been happy with the results of the home inspection, etc.

Your agent should definitely explain to you why the buyer cancelled.
0 votes Thank Flag Link Wed Mar 20, 2013
Can you call me I will be more able to go over all your questions my number is 520-867-0166
0 votes Thank Flag Link Wed Mar 20, 2013
I am assuming that you are the seller in Tucson, and that the initial contract was handled on both sides by YOUR listing agent is that correct, or did you sell by owner and the agent came with his/her buyer?
So this needs some clarification, although I think that you are definitely the home seller....

If a buyer cancels a sales contract, there has to be a good reason and the agent should know exactly what happened. Was it just an offer, or did both sides sign a fully executed legals sales contract, was it
then still within the inspection and attorney approval period, did something come up for the buyers during the inspection? or did the buyer not get their loan commitment.

As you can see from the above without exact details where in the process you were when the buyer pulled out, hard for us to tell what your standing is. But since you are obviously working with a Realtor,
and if this Realtor is your listing agent, he or she should know the reason and the legal standing at this
time.

If you wonder and do not get good answers, next offer / sales contract work with a real estate attorney

Good Luck to you

Sincerely yours,
Edith YourRealtor4Life & Chicago, North Shore & 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 Chicago & suburbs, and with her trusted Partner
Agents US & world wide properties. French, German, some Spanish &more EdithSellsHomes@atproperties.com or EdithSellsHomes@gmail.com
Check out my website at http://tinyurl.com/YourRealtor4Life
Get to know me! Learn about my experience, expertise, services! Read letters
of recommendation! Sign up to search for properties in my expanded service area.
HAVE THE MOST WONDERFUL DAY :)
0 votes Thank Flag Link Wed Mar 20, 2013
Sounds like you are the seller in this scenario. I don't know the reason for the cancellation, was it inspection issues, loan issues etc. Your agent should have had you sign a cancellation agreement if there was a valid reason for the cancellation per the contract. If not then there is a possibility that you couls retain earnest money, again, assuming that you are the seller. It's best to ask your agent for a clarification on what exactley happened.
Please let me know if I can help further.
0 votes Thank Flag Link Wed Mar 20, 2013
Noit sure I understand the question, but if the contract was cancelled talk to your agent to see what happened. There can be many reasons it was cancelled especially if it was a short sale. Communication is the key here with your agent. Let us know if we can help you further.
0 votes Thank Flag Link Wed Mar 20, 2013
Sorry, don't understand the question completely. What are you as the buyer attempting to accomplish, purchase the house after it was canceled? First step is to talk it over with your agent/broker.
0 votes Thank Flag Link Wed Mar 20, 2013
Search Advice
Ask our community a question
Email me when…

Learn more

Copyright © 2015 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer