Seller wants to back out of contract prior to closing?!?!?!?

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amother

Sienna

Thu, Feb 04 2016, 11:39 pm

Has anyone had such an experience? We the buyers have been in contract with a house for a bit over 65 days, we were gonna close any day now. We got a call from the realtor a few days ago that the seller let him now that his roof has a hole and he has leakage in one of the rooms. He let us come in for a peek only to see the issue.. so my husband went over with a good friend thats in the construction line and he told him its hard to assess the damage before opening up the damaged wall... To see if theres any old mold there. Seller says its either we take the deal as is, or the deal is dead. Now weve been going back and forth, the lawyers too (his lawyer is kind of unreachable) to try to get him to let us in to see how much the damage will even cost us... were ready to pay it if its a reasonable amount, but he says he aint letting us in again... We suggested he fixes the issue by claiming his insurance, but he says if he does that he will do it for himself and then sell the house at a later time. We have a sneaking suspicion that this is basically what he wants, for us to back off the deal and he will sell it at a higher price... WOW!!!! All the heartache, planning, and dreaming that went into this house already is beyond description!!!!
Our lawyer says we will probably win the case but cant guarantee how much time and money it will cost us.. and if we will be able to force the seller to move out if he says he doesnt have where to....
Anyone with experience?!?!?!!?

notshanarishona

Fri, Feb 05 2016, 1:16 am

Until it's signed he is entitled to back out as annoying and not menshlach as that it is. We had someone try to back out on us an hour before signing b/c some random stranger offered more money (after we had spent a good month back and forth on the contract and getting the house inspected , etc).

MagentaYenta

Fri, Feb 05 2016, 1:24 am

Where I live it is customary for a purchaser to have a clause in the contract that says if the seller backs out within x period of time they have to pay the buyer x amt. of money. Also most homes around here are sold 'as is' unless you negotiate additional terms.

amother

Sienna

Fri, Feb 05 2016, 7:04 am

OP here...
But im referring to something that happened after we signed contract... This problem happened between a signed contract and closing period...

watergirl

Fri, Feb 05 2016, 7:10 am

How did the inspector not find these issues? They sound pretty major.

amother

Sienna

Fri, Feb 05 2016, 7:12 am

OP here...
There was no issue then, this hole in the roof happened now from the major snowstorm...

Fri, Feb 05 2016, 7:19 am

Do you really want to buy a house with such significant damage? Better to find out before closing than after!

5*Mom

Fri, Feb 05 2016, 7:23 am

amother wrote:

OP here...
But im referring to something that happened after we signed contract... This problem happened between a signed contract and closing period...

Speak with your lawyer. Also read your contract. There should be a clause in the contract that deals with issues that arise in between contract signing and closing. This is standard. Also standard is a clause that discusses the walk-through that is done before closing to make sure that the house is in the same condition it was in when you signed the contract. Money from the purchase price will be kept in escrow with the Seller's attorney to cover any damage that occurred in between contract and closing, while the Seller was the owner of record. What is not standard, unfortunately, is a clause precluding the Seller from backing out of the contract. Sometimes a good attorney will put one in there. You'd have to check with yours. Either way, the Seller cannot change the terms of the agreement once the contract is signed, so if you still want to go ahead, it won't cost you more than you've already agreed to, providing your lawyer was competent.

Please tell me that you and the Seller have separate attorneys?

amother

Sienna

Fri, Feb 05 2016, 7:32 am

OP here
Well if we'd know how much damage happened and how much more it would cost us we'd be able to make the proper decision... the seller deosnt want to let us in to see the damage, he basically wants us to back out of the deal and is making it sound really bad, and telling us that he wont be able to close too soon now.... since he will have to look for a new house now that were pushing off the closing.

ye, of course separate lawyers...

Happy18

Fri, Feb 05 2016, 8:03 am

I'd run away. unless there are no other houses it sounds like a nightmare

5*Mom

Fri, Feb 05 2016, 8:05 am

amother wrote:

You don't need to know. You'll do a walk-through as scheduled, with a professional roofer who will work out or estimate the extent of the problem, the lawyers (and possibly a rep for your mortgage company/bank) will work out how much of the purchase price to hold in escrow (it's usually overestimated just in case), you'll get it fixed and it will be paid for from the escrow money.

Be careful and don't let the seller trick you into backing out of the contract: you will lose your deposit. If he wants to cancel the deal let him be the one to back out, officially, in writing to your lawyer.

PAMOM

Fri, Feb 05 2016, 8:07 am

5*Mom is giving you accurate and good advice. Call your attorney today.

5*Mom

Fri, Feb 05 2016, 8:09 am

I know he's saying he won't pay to have it repaired, but since he signed a contract, he is legally required to transfer the house to you in the same condition it was in when the contract was signed, normal wear and tear excluded. A hole in the roof is not normal wear and tear. So if he does want the sale to go through, he doesn't have a choice. As you mention, though, he may not want the sale to go through. Then let him be direct about it and officially back out of the contract. Otherwise, there is no reason to delay the closing. Take your roofer when you do the walk through.

ETA: But please do confirm all this with your lawyer. I am not a lawyer.

Last edited by 5*Mom on Fri, Feb 05 2016, 8:16 am; edited 1 time in total

shoshanim999

Fri, Feb 05 2016, 8:16 am

If you want the house real badly them just take it as is. It probably won't be more than a few thousand at worst and if that amount is not a deal breaker than just continue to proceed as normal.

amother

Blue

Fri, Feb 05 2016, 8:55 am

Actually he may want you to take it as is and the reason he is not letting you in is he does not want you to see the extent of the damage.

I'd be very careful taking it without knowing just how much money it would cost to fix. Roofs are expensive as is water damage repair.

Your real estate attorney should know how best to handle this. Damage occurring before the closing is not an uncommon or unheard of situation.

Hatzlocha

amother

Blue

Fri, Feb 05 2016, 8:56 am

plus I would not want to file a claim on my homeowners insurance for such a thing. If that could be avoided I would avoid doing so.

Ruchel

Fri, Feb 05 2016, 10:09 am

Sometimes there is a very real reason. One man, chas veshalom, we learned it was because his wife passed... lo alenu

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