Do I have time to get out of selling my house when I have signed an offer?
Our house sold, we found out that with the penalty for early repay we are going to loose over ,000. We have not signed anything else besides the acceptance of the offer. Can we cancel the sale now before the buyer spends any money on inspection??
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Tags: money
September 29th, 2009 at 8:19 am
Technically, as the seller you cannot get out of the contract, it is the buyer’s option to end the transaction once you have agreed to accept an offer, If you really want out, you can file an amendment to the contract stating that the buyer has to pay your penalty. That way, if the buyer REALLY wants your house he/she will pay it for you. Otherwise, they will just walk away from the deal. Or you could tell them it’s haunted…either one should work.
There is some risk that the buyer could file a specific perfrormace lawsuit, but chances are they do not know that, and wouldn’t want to pay a lawyer for the work anyway.
September 29th, 2009 at 8:19 am
First of all some states like NM forbid a prepayment penalty on principal residences unless the lender is a Federally chartered institution you might want to check to see if your state has similar laws.
Second you have signed a contract and as such you are obligated to the terms and conditions of such a contract and depending on the language of that contract you can not bail out unless you get the approval of the buyer to do so.
I would have your agent approach the buyers or the agent for the buyers and see if an agreement can be reached relating to a new price in view of the penalty or if they will simply let you off the hook. Only an agreement between the principals can terminate the accepted offer without legal implications such as a law suit for performance under the contract.
Buena Suerte
September 29th, 2009 at 8:19 am
This is a legal question and you should spend a few $$$ and talk with a Lawyer(real estate lawyer)
September 29th, 2009 at 8:19 am
Talk with your agent and let them know that you are thinking of postponing the sale to avoid the penalty. Maybe you can work out a longer escrow to avoid the prepay. It’s possible the buyer really doesn’t want your place.