Problem before closing

Asked by Buyer, Apex, NC Mon May 12, 2008

We are closing in 4 days. We do not have a buyer agent. The seller agent is saying that one of the sellers (divorced) has a personal problem. We do not know more detail yet. Meanwhile, my closing attorney has completed the title search and did not find any issues.

Please advice what to expect.

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9
Dianne Dibley…, Agent, Port Orchard, WA
Mon May 12, 2008
Personal problems do not show up on a title search, but since you have an attorney representing you, hope your attorney is a great mediator/negotiator, I'm sure you are well represented. Good Luck. Always get a Realtor, they are worth every penny you spend, we earn it too.
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2 votes
Larry Story, Agent, Greensboro, NC
Wed May 14, 2008
That would actually just drag out. You would get your earnest money back. Since they cannot close (verify with attorney) but, the money you have spent out of your pocket is not guaranteed you would have to most likely take them to small claims court. So just try to get more out of them for the inconvience to you.
1 vote
Larry Story, Agent, Greensboro, NC
Wed May 14, 2008
Ok,
Yes you could move in before closing if need be and at that point you would negotiate a rent payment to be paid to the seller. There is actually a place on your offer to purchase state form asking about possession before or after the close. The thing is at that point you are in period. Have you already done your home inspection and have all problems been resolved? Since the credit problem has no lien on the home the only reason she might not want to close is she is either declaring bankruptcy or she is trying to settle the judgement for less then the amount stated. Is the closing attorney her choice or yours? This is also depending on you. How badly do you want this home? I would make sure though they not drag this out further. Have her either pay your rent or costs you may have associated with not being able to move in or move in for 20 days with no rent paid to them. Use this as a negotiation point.

Good luck,
Larry Story
Coldwell Banker Triad
1 vote
Larry Story, Agent, Greensboro, NC
Mon May 12, 2008
Buyer,
Ask your closing attorney first. It could mean nothing more then they might not be able to be at the closing at the appointed time. If the HUD is done ahead of time (depending on when you lender can get the package to the attorney's office) they could have that seller sign ahead of time. The can sign the deed paperwork and other before the closing. Or you might have to postpone. Only thing is if they cannot close on time and it causes you hardship they could be liable. Of course without knowing what type of problem it is we cannot tell. Ask the sellers's agent if you are closing on time and if they could go ahead and sign if they cannot be there at closing. If not then ask them what they will do to remedy any hardships you may incur because of the delay.

Larry Story
Coldwell Banker Triad
1 vote
Pam Mork, Agent, Suttons Bay, MI
Mon May 12, 2008
Ask the title company to double check the title prior to closing -- in cases of divorce, foreclosure, etc. it is possible that a lien could be placed on the property between the time of the original title search and your closing. Talk to your attorney, but you should be assured that your attorney will not proceed with your closing if all is not in order.
1 vote
Buyer, , Apex, NC
Wed May 14, 2008
Thanks Larry, We have completed inspection and have negotiated the repairs. Closing was to be done in 2 days. We have our own closing attorney and the seller has her attorney helping her. We are thinking of moving in without having any rent payment until closing. This house price is a good deal for us and also we have already spent up to $1200 (inspection, loan, attorney, tittle etc) and lot of time. If we walkout at this point how much can we be compensated? Will we be compensated for the time we spent?
0 votes
Buyer, , Apex, NC
Mon May 12, 2008
Hi Rusty.
Thanks for your reply.

The seller agent did not disclose any details of the personal issue. He just mentioned that the closing may be delayed due to one of the seller's personal problem. We already know through other source that the sellers are divorced.

We are looking for expert suggestions on what to expect in cases like these.
0 votes
Rusty Koehler, , 78247
Mon May 12, 2008
The responses the other Realtors provided you to date look good to me. I wish to add that the seller's agent probably should not be disclosing any personal information about the seller's without that seller's permission. Based on the limited information given, it appears that seller's agent statement may violate the ethical standards Realtors are required to practice. Since that agent opened the door by making that statement if I were repesenting you I would be asking that agent to please clarify the statement. You can do that since you are not represented by a buyer's agent. As stated, the written contract takes precedence over any verbal statements. Good luck!
0 votes
Buyer, , Apex, NC
Mon May 12, 2008
The sellers are divorced and taken different paths. Can the sellers new life partner make any legal issues/claims in this property, which is on the sellers names.
0 votes
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