Buyer trying to back out after signed contract?

Asked by Tbird2340, 44514 Tue Aug 14, 2012

What legal action I would be able to take if someone is trying to back out of buying our house?

Basically we have a realtor (Howard Hanna) and the buyer has one (Klacik).. We have a signed contract.. Well, after a few weeks of no appraiser calling to setup an appointment to look at our house our realtor started trying to find out what was going on..

The buyer's realtor is saying he can't get financing, yet, he won't provide proof.. We had another buyer that wanted our house when all this was going on that we passed on (their offer was even higher than what the buyer contract was for) and now that we put it back on the market that buyer already bought another house..

All this to say, we lost a buyer, we lost 2 months of the house being on the market because it was listed as contingent when this was all going on so no-one was asking to see our house etc..

Thanks

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8
Aaron Sims, , Birmingham, AL
Thu Oct 11, 2012
Your agent should be answering your questions. This is thier job. As you are represented by an agent other agents should not be offering you advice. Your agent should be looking out for your best interest and you should be aware of everything that is going on. Talk to your Realtor and let them tell you your options. You should get a copy of the contract to a real state attorney to look at and tell you legaly where you stand as we can't give legal advice.
Best of luck.
0 votes
Jim Pruitt, , Youngstown, OH
Thu Oct 11, 2012
this is a hindsight situation and part of the nature of the business, for future reference you should require any buyer to have an earnest money deposit in at least the amount of 1000 USD and also
should have proof of funds BEFORE executing any contract if no proof of funds, no contract , no deal house stays on market till then, this was one of the toughest lessons i learned when i first got into this business, doesn't help much after the fact but all you can do is chalk up as learning experience!! good luck!!
0 votes
James Deskins, Agent, Worthington, OH
Tue Aug 14, 2012
You are right to be suspicious. Hold their feet to the fire.
0 votes
Tbird2340, Home Buyer, 44514
Tue Aug 14, 2012
They aren't providing proof of not getting approved for the loan.. I said that in my original post.. If they did, sure I would move on.. They are unresponsive to their agent (supposedly) so something fishy is definitely going on..

Thanks for the replies.
0 votes
David M. Chi…, Agent, Uniontown, OH
Tue Aug 14, 2012
As a Howard Hanna Realtor myself, I advise my sellers that the contract states that a buyer can void a contract if financing is unavailable or the home inspection reveals a defect that cannot be negotiated to both parties satisfaction. I am sorry that it took weeks for this to happen, that is not normal as the contract also states a date, usually 10-14 days that the buyer must obtain financing to move the closing date along. Good luck to you Tbird!
Web Reference:  http://www.davidc.com
0 votes
James Deskins, Agent, Worthington, OH
Tue Aug 14, 2012
Ron is right. However, it's pretty common to ask for proof that a buyer's loan has been denied. I wouldn't let them out unless they provide a formal letter from their lender stating that their loan has been denied. That's my opinion. I'm not an attorney and I'm not your Realtor.
0 votes
Mike Sullivan, Agent, Gainesville, FL
Tue Aug 14, 2012
I agree with Ron in that if the buyer cannot obtain financing, they can certainly get out from other responsibilities in the contract....they should, however be able to provide some sort of documentation that they have been declined for the mortgage.
Web Reference:  http://alachuarealty.com
0 votes
Ron Thomas, Agent, Fresno, CA
Tue Aug 14, 2012
Surely, your Agent has explained that when the Buyer includes a CONTINGENCY for the Loan, that they can and may, back out, if they aren't able to get the Loan.

This is just one of the things that can happen; it comes with the territory.
Just move on.
0 votes
They aren't providing proof of not getting approved for the loan.. If they did, sure I would move on.. They are unresponsive to their agent (supposedly).
Flag Tue Aug 14, 2012
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