Real Estate

Buyer not closing on firm deal

  • Last Updated:
  • Oct 20th, 2017 9:52 am
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KristieL867234 wrote:
Sep 10th, 2017 11:05 pm
Yes I agree - that was my concern. We're not offering this because we think there's a problem, we're doing it to calm your concerns and move forward.
In terms of lawyers if the rebate/price cut doesn't work. Then a legal firm like this appears to be in the business of what you need. Their whole website is more focused on this type of situation. I've never used them, but it came up in a quick search. Before I signed on a firm like this I would would want some references as to how they operate.

Lol...I don't use the term abatement for the price cut as that term is many times used in the description of a mold treatment (mold abatement).

http://www.gilbertsondavis.com/real-est ... e-dispute/

They do have some discussion of latent defects on the site that might be of interest.
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Im going to guess the Sold Date and Closing date was many months apart. During several months buyers can feel remorse.. hope thats not the case but sounds like it may be.

KristieL867234 wrote:
Sep 10th, 2017 8:19 pm
We recently sold our home. First person through made an offer at full asking 2 hours after being listed conditional upon financing and home inspection. We received another offer shortly after, also full asking but no conditions. Because we're softies, we have the first guy the chance to firm up and didn't sign back the second. He had his home inspection, and an appraisal and then firmed up and waived conditions. He requests his final walk through, and suddenly says he "smells mold in the basement and is having an allergic reaction." We as the sellers can detect 0 odour. There's never been a mold or dampness issue in the basement. No history of water penetration. He notices discoloration and watermarks on the baseboards (present at home inspection - not new) and demands a "mold inspection". We say no, we had had an incident with a bar fridge in the basement that was unplugged accidentally - there was food in it that spoiled. We cleaned it up but it may have caused watermarks on the trim. We will replace the trim. His lawyer sends a letter saying he wants the inspection or he won't close. We figure, screw it - we have nothing to hide. Go for it. He sends a guy with 2 years experience and next to no accreditations to take an air test. He doesn't do it under controlled conditions and has no knowledge of the incident with spoiled food. Sure enough test comes back extremely high spore count of penicillium (food borne mold). We get our own inspection to counter his that shows no visible signs of mold, no excess moisture and slightly above average air test. Buyer is still refusing to close. We got a quote for the remediation costs (minimal as there's no visible mold or water penetration) and are offering an abatement double the amount of the quote. He's requesting a mutual release and not proceeding to close. Should we hold him to this sale? If we relist the market has softened, and our house is vacant so it's not likely to get the same asking price. Plus we're now carrying two homes and the costs are mounting. What should we do?
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Apr 10, 2017
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mrtrump wrote:
Sep 11th, 2017 8:41 am
Im going to guess the Sold Date and Closing date was many months apart. During several months buyers can feel remorse.. hope thats not the case but sounds like it may be.
Happened to me. 90 days apart and those days were painful. Those 90 days did help me financially and mentally prepare my mind for the renos/choices/plans, but if I were to do it all over again, I would've closed sooner.

Perhaps I'll share my story here once my renos are done.
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Jun 19, 2017
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licenced wrote:
Sep 10th, 2017 9:38 pm
As far as I can see.

This buyer will get their deposit without question.

The seller allowed the test without provisions.

The issue is mould - a toxin.

The buyer will get to walk.

Get legal advice first before presuming that you know your property.
This is 100% correct...
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Seller says the Buyer revised his offer to all cash and removed conditions. So if that paperwork was done, I dont think he can walk away easily...
varano wrote:
Sep 12th, 2017 6:54 am
This is 100% correct...
[OP]
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Sep 9, 2017
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Seller says the Buyer revised his offer to all cash and removed conditions. So if that paperwork was done, I dont think he can walk away easily...

I sought a second legal opinion and that was their response. "Caveat Emptor" protects the seller in the area of latent defects.
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KristieL867234 wrote:
Sep 12th, 2017 12:43 pm
I sought a second legal opinion and that was their response. "Caveat Emptor" protects the seller in the area of latent defects.
Yes this is true provided that the seller did not know about the latent defect. that's key.

The buyer is obviously taking the position that you did know.

Here's where your lawyer's handling of it I think didn't help you.

-Buyer said they smell mould and wants an air quality test
-Your lawyer it seems didn't bother to object to the buyer choosing whomever they wanted as opposed to mutually agreeing to a reputable company
-You think the buyer's air quality inspector with 2 years in the business isn't knowledgeable enough but you had a contractor do a visual inspection to counter - that's not adequate
-You and your contractor believe there's nothing but you say you're offering an abatement (in good faith) to close, which apparently your lawyer is on board with even though there is no mould issues.

You also say your contractor is willing to do remediation work despite there being no sign of mould, but you also say you're not offering to do any remediation which this clearly is.

All those efforts to try and save the deal are fine and dandy and does bode well for a seller who is just trying to be agreeable, but nowhere in there did you once mention that your lawyer took the steps to warn the buyer about anticipatory breach or relisting or anything to that effect and it's already 2 weeks past the closing date where it is obvious that the buyer has repudiated the Agreement.

What is missing?

(edited to correct lawyer to air quality inspector and 3 weeks to 2 weeks)
Last edited by licenced on Sep 12th, 2017 1:46 pm, edited 2 times in total.
[OP]
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Sep 9, 2017
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It's very clear if there was any defect we were unaware considering we submitted to an inspection - after all conditions were waived and the deal was firm.

I totally agree - our lawyer did not allow us to do due diligence on the inspector and definitely did not advise us properly.

The contractor is not necessarily willing to do the work - he's simply providing us with a cost assessment inline with the schedule provided by the buyer's inspector since the buyer stated in writing "he would not consider the results of any other inspections". This contractor has not agreed to do any work for the buyer.

You're right - our lawyer didn't threaten regarding breach of contract, we asked him to be more firm but he was not. He had a verbal conversation with the buyer's lawyer - he said he's still very much in love with the home. Our lawyer said OK, is he open to a price reduction at all? He responded with absolutely. We sent him a proposed quote detailing any remedial work that MIGHT be required and asked that he call to discuss next steps. His lawyer did not call, instead sent a letter requesting a mutual release.

I've now asked my lawyer to detail all of our potential losses if he does not close. To state that we reiterate our position that there has never been any water penetration issues to our knowledge. That we haven't presented any repudiating inspections because he advised us they would not be considered.

That we are offering this reduction in an effort to close and not because we are acknowedging any serious defects.

Also, he had 2 opportunities - we gave him a home inspection and a chance to do an appraisal so he could firm up his financing.
[OP]
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Sep 9, 2017
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We amended the closing date to this Thursday. He is not past the closing date yet.
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Jun 7, 2017
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sidshock wrote:
Sep 10th, 2017 9:31 pm
Doesn't the deposit goto the Agent first? Which literally eats almost all of it usually.
Also, needs some legal proceeding approval and time until it's released?
I think they need to sue and win to actually see some $$.
But I agree, don't release. F that.
No, the agent gets paid upon closing. No close, no pay. Defaulting on the deposit is not closing.
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KristieL867234 wrote:
Sep 12th, 2017 2:27 pm
We amended the closing date to this Thursday. He is not past the closing date yet.
Are you going into Thurs with the same transactional lawyer or with a litigation lawyer? The first lawyer seems more interested in handing over keys, title searches.. etc.

To me it would be a huge shock for his lawyer and himself to see you've stepped up and got a shark lawyer. They are basically hoping you fold. Imagine his reaction if his lawyer turns to him and says this is getting out of my league you better get someone better.
[OP]
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Same lawyer BUT he's consulting with other's in his practice now. He just sent a very firm, factual and concise letter to the other group. If I received it, I'd be quite concerned. Basically outlines all of our expected expenses, and that we're only offering this to appease his concerns and avoid litigating. He states there are no issues with the title and that feelings of buyers remorse are not enough to get out of the deal. He says we fully expect to close on our amended date and will proceed as such.

I'm feeling good about it personally!
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KristieL867234 wrote:
Sep 12th, 2017 3:46 pm
Same lawyer BUT he's consulting with other's in his practice now. He just sent a very firm, factual and concise letter to the other group. If I received it, I'd be quite concerned. Basically outlines all of our expected expenses, and that we're only offering this to appease his concerns and avoid litigating. He states there are no issues with the title and that feelings of buyers remorse are not enough to get out of the deal. He says we fully expect to close on our amended date and will proceed as such.

I'm feeling good about it personally!
Ok best of luck and be sure to keep us up to date. Always remember it's the buyer who tried to walk out of a firm deal, not you. So if they get a strong factual letter that suggests you plan to go nuclear and they will be responsible for all costs....they might be more willing to close now. They were counting on you buckling.
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KristieL867234 wrote:
Sep 12th, 2017 2:27 pm
We amended the closing date to this Thursday. He is not past the closing date yet.
I may have missed it but what brought about the amendment to the closing date and who initiated it?
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Jun 7, 2017
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licenced wrote:
Sep 12th, 2017 6:38 pm
I may have missed it but what brought about the amendment to the closing date and who initiated it?
Seriously. What the heck?

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