Home Buying in West Hills>Question Details

Akl,  in San Fernando, CA

What can buyer do when seller breach the contract?

Asked by Akl, San Fernando, CA Sat May 3, 2008

Hi,
I recently got accepted for my offer to a short sale home. The lenders approved the price, the seller agreed the price and all contigencies, and both seller & buyer agreed and signed the contract to sell and buy. Within few days, right before we planned to do the inspection, the seller changed their mind and requested to cancel the escrow and the buying/selliing contract. In this case, can buyer or listing agent do anything in order to keep the contract going on?
Please advice.
Thanks.
AL

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8
If you read the short sale addendum from the bank, they usually put language in there indicating that they can rescind the sale at any point during the process. I would read your short sale paperwork carefully. It has been my experience that there is nothing you can do . It is one of the many reasons why I don't personally like doing short sales. There are almost "zero" guarantees that a sale will proceed to closing. As a Realtor (which differs from an agent) trying to work with and protect my buyer clients they afford me "zero" control in the transaction thereby eliminating my ability to fully protect the buyer. You basically are at the banks mercy every step of the way- and all the steps they don't take. Get a cancellation notice in writing, get your deposit back and think of it as a learning experience. Sorry. I know they are frustrating. Good Luck. Cindy Vedder
3 votes Thank Flag Link Sun May 4, 2008
The ONLY DIFFERENCE between a REALTOR and a State Licensed Real Estate Agent is the $400 bucks or so said agent PAID TO JOIN THE NATIONAL ASSOCIATION OF REALTORS. Whatta crock. When I have extra money, I pay the stupid NAR. When I don't, I don't. I'm still the same licensed agent. jeepers.
Flag Wed Jul 10, 2013
There seems to be a little confusion here. YOu are invited to visit our CSE: http://www.google.com/coop/cse?cx=000747579154309164948%3Ann…
search "specific performance" then select "LAW. " Some good information on breach of contract is available.
1 vote Thank Flag Link Mon May 5, 2008
Sounds like you may be able to sue for specific performance, but you will need an attorney.
Cochise
1 vote Thank Flag Link Sun May 4, 2008
I'm in a similar situation. The REO/Seller requested that we close by 3/9. Now, the asset managers can't find the paperwork and say it could be weeks before they do. In the meantime, my rate lock is good until 3/16 -- and rates are up since I locked!

I think the seller should at least have to discount the difference from my original offer. My agent says that the seller will most likely tell me to go pound sand and refund my earnest check. This isn't fair. In my opinion, the seller is in breach and Im thinking about getting an attorney to enforce the terms of the contract. What does this group think?
0 votes Thank Flag Link Fri Mar 4, 2011
I recently got accepted for my offer to a short sale home. The lenders approved the price, the seller agreed the price and all contigencies, and both seller & buyer agreed and signed the contract to sell and buy. Within few days, right before we planned to do the inspection, the seller changed their mind and requested to cancel the escrow and the buying/selliing contract. In this case, can buyer or listing agent do anything in order to keep the contract going on
0 votes Thank Flag Link Mon May 5, 2008
I recently got accepted for my offer to a short sale home. The lenders approved the price, the seller agreed the price and all contigencies, and both seller & buyer agreed and signed the contract to sell and buy. Within few days, right before we planned to do the inspection, the seller changed their mind and requested to cancel the escrow and the buying/selliing contract. In this case, can buyer or listing agent do anything in order to keep the contract going on
0 votes Thank Flag Link Mon May 5, 2008
Thanks everyone for all of the responses so far.

That is right. In this situation, the seller is the one trying to back out the contract claiming that they just found out some disagreement with their lenders about the short sale vs their credit status. That the lenders told the seller that their credit will be reported neagively upon the short sale because of the money that lenders are giving up to the seller by the lenders due the amount they own is way too higher than the price they can sale to us.
We really like the property and i think it is considered a great deal for us too. Is it worth to sue the seller ?
Thanks again.
0 votes Thank Flag Link Mon May 5, 2008
It sounds like the seller is attempting to backout of this deal, not the lender, correct? Have your Realtor talk with the listing agent to get the entire story.

Once your Realtor gets the facts on this situation, have him/her talk with their in-house broker and/or legal counsel to see if there's anything you can do in this situation. It seems the sellers are backing out early in the escrow process, so there may not be much you can do here.
0 votes Thank Flag Link Sun May 4, 2008
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