Author Topic: Buyer backing out on home sale (seller is a friend)  (Read 1509 times)

andy85

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Buyer backing out on home sale (seller is a friend)
« on: September 02, 2016, 06:25:53 AM »
So my buddy has his closing in literally 2 hours and his wife just called him saying that the buyers are backing out. So, that's cool. I'm just curious as to what recourse they may have...any thoughts? He said right now they are still going to the closing and if the buyers don't show then the realtor may sue them. Seems to be turning into quite the clusterfk.

LordSquidworth

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Re: Buyer backing out on home sale (seller is a friend)
« Reply #1 on: September 02, 2016, 06:31:39 AM »
Typically can keep the escrow deposit. Read the contract.

Lawsuit would be a waste of money. Can't force them to buy it.

Fishindude

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Re: Buyer backing out on home sale (seller is a friend)
« Reply #2 on: September 02, 2016, 06:48:58 AM »
That is why you get a substantial deposit when you accept an offer.
If they bail, you keep their deposit in respect for your time and effort.   

I've been on both end of deals like this.  Accepted an offer to sell a home one time, got the deposit and the dude bailed, so we kept the deposit which was cool, because I sold the place shortly thereafter.   Also put $5,000 down on a farm and was fixing to purchase it when my neighbor approached me wanting to sell his ground.   I couldn't do both and it would have been silly to pass up purchasing a piece of adjoining ground, so I called the realtor, apologized and told them to cash & keep my deposit check.


Dicey

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Re: Buyer backing out on home sale (seller is a friend)
« Reply #3 on: September 02, 2016, 06:57:15 AM »
That is why you get a substantial deposit when you accept an offer.
If they bail, you keep their deposit in respect for your time and effort.   

I've been on both end of deals like this.  Accepted an offer to sell a home one time, got the deposit and the dude bailed, so we kept the deposit which was cool, because I sold the place shortly thereafter.   Also put $5,000 down on a farm and was fixing to purchase it when my neighbor approached me wanting to sell his ground.   I couldn't do both and it would have been silly to pass up purchasing a piece of adjoining ground, so I called the realtor, apologized and told them to cash & keep my deposit check.
+ 1. This could turn out to be a blessing in disguise.

andy85

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Re: Buyer backing out on home sale (seller is a friend)
« Reply #4 on: September 02, 2016, 10:21:39 AM »
Update:
The closing happened. Sounds like the buyer's realtor broker was pressuring the buyers to go through with it due to the threat of legal action. He (the seller) said it was awkward af at closing, but it is a done deal now.
« Last Edit: September 02, 2016, 01:22:48 PM by andy85 »

bpleshek

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Re: Buyer backing out on home sale (seller is a friend)
« Reply #5 on: September 02, 2016, 12:45:51 PM »
Wow.  Typically, you can keep the deposit money unless it is one of the protected "outs" as agreed to in that specific contract.  They can usually get the deposit back if:

Financing falls through(sometimes this is waived, though if i was a buyer, i wouldn't waive this).
Doesn't pass inspection.

Brian