Jessica.

Best thing to do is have your realtor fill out the termination agreement, let you sign, and move on. Give the buyers the earnest money back and find another buyer. If there are repairs needed you'll either need to fix them or specify financing for the next offer...like conventional financing only/NO FHA or VA. This is the business answer not necessarily the legal one. If you release it you can move on and get another buyer. If you want to fight for it then you may not be able to sell the house while the money is in dispute. Believe me this is totally against my nature, but this is one of those cases that even if you are right and want to prove it, you may end up the big loser proving it. Best to take your punches and move on...focus on getting a good buyer instead of dwelling on one who can't preform.

First of all, if you have any legal questions, this is the wrong place to ask. Consult an attorney. All of the advice that you have been receiving is sound. I would remind you that in the contract, it clearly states that neither party is obligated to pay for lender required repairs. However, if no one pays, then the lender won't lend. I would first talk to my agent (was only one agent involved?), and seek his/her counsel. Then seek legal advice. I almost hate to say this, but sometimes bad stuff just happens. What can you do? Deal with it and move on.

If there were lender required repairs and the sellers would not perform the repairs, the contract cannot proceed. The form releasing the Earnest Money Deposit (EMD) needs to be signed by all parties in order for the EMD to be released to the buyers.

If you read the contract, there should be a Financing Addendum. If the lender requires repairs and the sellers won't perform the repairs, the lender will not proceed with the mortgage so the Financing Addendum cannot be met and the contract cannot be completed. The Financing Addendum is a contingency. Without the lenders' cooperation, the buyers cannot purchase the property.

If you are the seller, I can understand that you are upset because you wanted to sell your house but you can't force someone to buy your house. The EMD will stay in the escrow account for so many days, according to the laws and rules of the escrow company and your state and local agencies. After that time has elapsed, the EMD will be turned over to the state, county, or city, depending on your local laws and rules. It is rare that a seller will not release the EMD but it does happen occasionally. When it does happen, the buyers will have to file suit against the sellers and everybody will go to court in a few months or a year. Each party will pay attorney fees. The winning party will pay court costs, and possibly, the other side's attorney fees as well. I do not know of a case like this where the courts have insisted that the buyer perform.

Selling your home is stressful and I do understand how upsetting it can be when things don't work out. I'm sure your agent and the buyer's agent worked very hard to try to get all parties to come to terms. How disappointing for you to come so close and then not complete the sale. Now that you know there are repairs that need to be made before a lender is going to agree to a mortgage, you can complete them before placing your home back on the market. Best wishes for the successful sale of your home next time.

Sorry, can't sleep tonight and was just shocked reading through your questions from the past 2 months. As to your last question, if there is not an intermediary status, your Realtor/Broker, the one you signed a listing agreement with, should be representing you and you only. Unless there is missing information, this does not appear, based on your explanation, to be right.

Get some sleep. Easier said than done but when you call me tomorrow I will get you with an attorney that can hopefully answer all these questions, with legal authority and you can move forward one way or another.
http://www.BCSHomePros.com

thank you summer, i'll give you a call tomorrow.

for everyone else, addt'l info. we were past all contingency clauses, inspection, financing, etc. the only other out was the lender repairs which they didn't reference as the reason for termination. our realtor, that claims the buyers were unrepresented and they didn't have a buyer's rep agreement with them, is the one that completed this termination like this for the buyers. we got the office manager and broker involved so we weren't speaking to this realtor at the time, only the manager.

i suppose my real question is why any realtor would complete a termination in this fashion? does this seem odd to anyone else out there? just wanting advice if anyone has experienced similar situations, etc.

These are legal questions to a contract dispute. As a local and experienced Realtor in the area, I can tell you the following:

Most contracts have a termination option period, usually 7-10, where the buyer can terminate the contract for any reason whatsoever and is entitled to their earnest money. If you are within that period there may not be much you can do.

Additionally, after the termination option period is over, there are other "outs" a buyer can rely upon such as financing conditions, depending on the terms of the contract. Every contract is different.

I strongly suggest you seek legal advice in conjuntion with your Realtor's advice, assuming you are not selling the home on your own. You can submit your own Release of Earnest Money form to the title company with your reasoning. However, a title company is a neutral 3rd party and typically has set procedures in place when both buyer and seller seek to receive the earnest money upon termination of a contract.

If you are unrepresented and would like additional advice from a Realtor and/or a Real Estate attorney, please feel free to contact me at 979-255-5195. I would be happy to review the contract details and get you in touch with the attorney I work with on real estate matters if needed. If you are represented please do not consider this a solicitation; talk with your Realtor and he or she can get you in touch with an attorney to answer these questions, if necessary.

You can visit my website at http://www.BCSHomePros.com to find additional contact information.

I am so sorry you are dealing with this situation and would like the opportunity to help you if you are not already represented by an agent.

Web Reference: http://www.era.com