I signed a contract to buy a small apartment unit, without putting down any deposit at all. Now I'm not interested in buying this unit anymore,

Asked by Ss322, San Jose, CA Sat Apr 23, 2011

and told the agent to cancel the contract for me. The seller's agent sent a "Notice to buyer to perform" asking for Initial Deposit? Am I obligated to pay anything at this point? How should I proceed to avoid any trouble? Please help me. Thank you!

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Roland Barcos, Agent, San Jose, CA
Sun Apr 24, 2011
BEST ANSWER
Hi Ss322,
While it's important to read and understand the contract, in this case it is equally important to read and understand the Notice To Buyer To Perform. It is likely this is CAR form NBP. This form clearly states the consequences of doing nothing: "..., Seller may cancel the agreement". The agreement refers to the original contract. Whether it is this or a similar form, your agent should be able to explain it to you and protect your interests. Based on what you have said, you should be able to walk away from this deal without a problem. If your agent is incapable of doing this, go to their broker. If still not satisfied, consult with a qualified real estate attorney.

Good luck,
Roland
0 votes
Steven, Agent, Newport Beach, CA
Mon Apr 25, 2011
If you break an agreement in writing, you may be held liable for damages. The seller is taking their property off of the market for you and spending their time on you. That's their damages.

If you really don't want to buy the property, I'm sure one of the next three items can be made to work for you;

Typical ways buyers fail to purchase a property:
1. Mutual Agreement - seller and buyer agree to cancel contract.
2. Inspection - property has defects that weren't disclosed.
3. Loan Contingency - Buyer isn't able to get a loan and is therefore unable to buy property.
0 votes
Terri Vellios, Agent, Campbell, CA
Sun Apr 24, 2011
You need to read and understand the contract. Simply because you didn't provide the earnest money doesn't mean that you don't have to deposit it. The other side is performing and providing notice since you haven't provided your earnest money you are possible in default of the contract. The other concern, again not knowing your contract, your agent quite possibly could be liable if the contract is an Offer to Purchase and Receipt for Deposit. Providing a receipt and not collecting the deposit is not a good position to be in.

A contract is a contract - promise and when broken people can get upset.Since this may need an attorney to give you the legal advice that is recommended.
Web Reference:  http://www.terrivellios.com
0 votes
Norman Aless…, Agent, San Jose, CA
Sun Apr 24, 2011
The other agents gave you good advice, but just to add to it here is what I would do. Go over the contract again with your agent and if you are still with-in your contingency period you should be fine just have your agent resend the cancelation of your contract. If no go with that don't get talked into anything you don't want to do, and don't send any money,until you speak to an realestate attorney to find out what your obligations are if any and what you should do.
At your service,
Allyson
408-705-6578
allyson@homesbyallyson.com
0 votes
Phil Rotondo, Agent, Melbourne, FL
Sun Apr 24, 2011
It is always one of your options to consult with an attorney.
Web Reference:  http://www.321property.com
0 votes
David and Da…, Agent, Campbell, CA
Sat Apr 23, 2011
Since it is so early you Should Be able to cancel simply by contacting your agent.... Inspection Contingencies. But without seeing your contract can't know for sure.

Should Be....

Danielle Contreras
Keller Williams Realty
408.460.1849
Web Reference:  http://www.SanJoseTeam.com
0 votes
Gabriel Nguy…, , Campbell, CA
Sat Apr 23, 2011
Review your residential purchase contract (RPA) and then talk to your agent.
Web Reference:  http://www.4reohomes.us
0 votes
Andrea Wince…, Agent, Milpitas, CA
Sat Apr 23, 2011
The answer to your question is what you signed and agreed to under the terms and conditions of your purchase contract. The agent who wrote and submitted that for you should advise.
0 votes
Gabe Heredia, Agent, Hayward, CA
Sat Apr 23, 2011
I would advise reviewing the signed purchase contract. If you are not able to decipher the contract ask your agent to explain how the contract, you signed, reads. If you feel you are not receiving the answers to your question contact the agent's broker.

Good luck!
0 votes
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