Q. My property went into a sixty day escrow. The escrow amount was $3,000.00. Five days prior to closing the buyer's agent notified me that the contract would be cancelled due to the fact that the property did not appraise for the agreed upon value. Is the buyer's escrow forfeited?
A. In any situation, you must first turn to the closing contract itself. You should look for deadlines for certain things to occur, such as appraisals. Did this appraisal occur after the deadline? Were any other terms involving deadlines not met by the buyer? This will give you some insight as to whether or not the escrow monies must be returned. A general rule of thumb is that escrow monies cannot be released without the consent of all parties.
Q. We had a closing date set. I have just been informed that the seller is requesting a delay in the closing date. Do I have legitimate grounds for renogiation of the purchase price?
A. The reasons that a seller may wish to delay closing may vary, from the legitimate to outright procrastination. If you attempt to renegotiate the purchase price, it may be considered as a new offer, which replaces the original offer. This may therefore void the original offer and all terms negotiated pursuant to that offer. The safest way to approach this is to simply ask yourself if you are willing to wait for the property at the originally agreed upon price.
Q. I am purchasing a property. The seller has not found a replacement property, and has requested an extension of the escrow period. If I do not agree to the extension, do I lose appraisal and inspection fees, as well as my deposit?
A. The deposit will likely be refunded less a small cancellation fee. The appraisal and inspection fees will most likely be lost. If you agree to the extension, be sure to place deadlines on the seller, such as a time by which a replacement property must be found.
Q. I decided to purchase a particular home, however I have now changed my mind. How do I go about cancelling the contract?
A. A contract is a legal document which you have made with the seller. Cancellation for certain reasons may be allowed, however cancellation on the sole basis of changing your mind will likely come with ramifications. You should strongly consider these ramifications prior to backing out of the deal. You should consult an attorney regarding your potential liability in this situation. Typically, a contract cannot force parties to a transaction, however you may be responsible for paying damages to the seller. These damages can take many forms, including the lost opportunities that the seller missed as the result of taking his or her home off the market.
Q. I signed a contract to sell my home. Now I have changed my mind and want to keep the property. Must we sell our home?
A. Again, the first thing to do is to look at the legal document itself. Look for contingencies which will allow you to back out of the transaction. The buyer may decide to enforce the contract in court. You should consult an attorney. It would be wise to make the cancellation more palatable to the buyer by compensating him or her for all of their out of pocket expenses, and maybe an additional amount for their time and effort in negotiating the transaction.
Q. I made an offer on a property. The seller came back with a counter offer. May the seller subsequently sell the property to another buyer?
A. Typically, the seller is free to sell the property to the first buyer who accepts an offer. If you have not accepted the counter offer, chances are the seller is free to do as he or she pleases.
Q. Can I negotiate the selling price of a newly-constructed home?
A. You can always negotiate the selling price of any real estate. However, the seller of a newly-constructed home is usually not willing to budge on the price, for a variety of reasons, not the least of which is the small profit margin for transactions involving newly constructed homes.
About the Author:
Catherine Nguyen was born and raised in Dallas, Texas and is a licensed real estate agent. Ms. Nguyen specializes in Dallas real estate and has a career with Renowned Realty Group ? Dallas/Ft. Worth RE/MAX.
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