I am a seller. I received an approval, with conditions on the commitment date? Is this a true commitment letter? There is a major repair to be

Asked by Victoria, 19525 Wed Dec 9, 2009

done on the house and I have repeatedly said I am not fixing it. They say they still have a contract with me. Do they? I want to get my house back on the market with this disclosure.

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Renee Porsia, Agent, Newtown, PA
Thu Dec 10, 2009
Victoria,

I am assuming that you already have a Realtor. If you have signed off on an Agreement of Sale and the buyer has a commitment and there are conditions on it, then the buyer can't obtain a mortgage until all of those conditions are removed by the bank. The buyer needs to provide the bank with whatever proof they require in order to remove those conditions.

A commitment doesn't mean anything until all of those conditions are removed.

Did your Realtor put into your listing on the MLS that your home was being sold in "as is" condition?

The buyers are right in saying that they do have a contract with you but there are dates contained within that contract and if those dates have passed, you may be able to end it.

For instance, did they have a home inspection? If so, they only have a few days to make a decision as to whether they want to continue on with the purchase. They should have given your Realtor a report and an Addendum telling you what issues they want fixed/repaired or receive a credit for. Then you have a certain amount of time to reply and then it goes back to the buyer for a final decision. Has that time passed? Did you reply back saying you weren't doing anything?

Talk with your Realtor and ask her about the Agreement of Sale. He/she should have explained all of this with you prior to you signing the Agreement of Sale.

If your Realtor tells you that the buyer is in default because they didn't comply with a date contained within the Agreement of Sale, then you should be able to release the buyer.

Did the buyer's give you the mortgage commitment by the date contained within the Agreement of Sale? If they didn't, you can get out of the AOS.

Sit with your Realtor or talk with the Realtor's Broker.

I am sorry that you are having these issues. It must be stressful.

Remember, you can always consult with an attorney.

Renee Porsia
Associate Broker
RE/MAX ACTION
(215) 669-0589 Direct
(215) 358-1100 Office Ask for Renee
http://www.reneeporsia.com PHILADELPHIA'S NUMBER ONE SOURCE FOR ALL THINGS REAL ESTATE
1 vote
Kimberly Col…, Agent, Limerick, PA
Wed Dec 9, 2009
Victoria,
Hi! April from NC is correct some leanders will not finance the loan if the major repair is not done. It would be best to talk with your listing agent about this or their broker.
If you have listed your house by yourself I would suggest going to a Real Estate Attorney, Norman Mittman (215 822-2700 ext 218) is a Attorney and he deals with a lot of Real Estate issues, I would suggest that you call him.
I hope this helps!
Kimberly Collins
Realtor, ABR

Keller Williams Realty Group
O: 610-792-5900 Ext 8177
F: 610-792-8131
C: 610-476-7519
E-Mail: Kimberly.collins@kw.com

"A Refreshing Real Estate Experience"
0 votes
Dan Rich, , Doylestown, PA
Wed Dec 9, 2009
Hello Victoria,

A "true" commitment as defined by the agreement of sale contains no conditions excepting standard ones which performing a major repair is not. You may be able to terminate the existing agreement within certain timelines if the condition is not removed but you should discuss this with your Realtor. The answer is in the details and I would need to see it to make a judgment.
Web Reference:  http://www.dan-rich.com
0 votes
., , Denver County, CO
Wed Dec 9, 2009
If the commitment letter has a condition on it, then it sounds like the lender will not finance the loan without that major repair being done. If you refuse do it, then the buyer will not be able to close on your home. The contract will need to be cancelled and the buyer should receive their earnest money back. You will have to disclose the major repair to all future buyers. This same repair may come up with another buyer's mortgage company so you may want to do the repair and maybe increase the price to compensate for it.
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