I mean, really! You have got to be kidding me! 🤯
Yesterday, I received a call from the Listing Agent I am working with for the purchase of a home for my Buyer client. He did not have good news to present to me.
My Buyer is under contract to purchase this home in Salt Lake. We were told by the Listing Agent that the Seller is behind on payments and needs to move fast since the Seller is in pre-foreclosure. Ok, no problem for this Buyer! He can move fast, or slow. Time is on his side.
The Seller accepted our offer! Hooray! 🎉
Then, I get this phone call that the Seller doesn’t want to sell their house any longer.
Woops! This is a problem for the Seller, because in the state of Utah only the Buyer can cancel the Purchase Contract once it has been fully executed (meaning signed by both parties). 📃
As I spoke with the Listing Agent, I asked if his client understood the legal ramifications if they do not move forward with the sale of their property. Unfortunately, I knew the Listing Agent didn’t have his act together when I met him at the open house just days ago.
He told me the Seller was behind on payments. So, I asked several questions that should be standard when this happens. I know because I have been able to assist Seller’s who have been in similar situations.
He didn’t know the answers to some of these basic questions. 🤔
He clearly just wanted to get a deal done so he could get paid. 💵
I didn’t care so much, because my Buyer liked the house and I can find ways to get the answers we need about the Seller’s situation. The agreement specifically lays out in Section 16 what happens if either side defaults on the Real Estate Purchase Contract. My client has 3 options:
- Have his Earnest Money, which is being held at our Brokerage’s trust account, be returned and receive an amount equal to his earnest money from the Seller.
- Take back his Earnest Money and sue the Seller to go through with the sale
- Take back his Earnest Money had pursue other remedies from the Seller (which honesty if you think about it sounds ominous!)
The issue we have is that the Seller is behind on payments, and they filed bankruptcy. So, how do we even know if the Seller has the funds to fulfill option 1 above? 😲
We don’t.
This is going to be an interesting one to work on. Speaking to the Listing Agent isn’t helping because he is not being super cooperative. He has basically thrown his hands up on this one.
Luckily for my client, he has a professional in his corner that knows how to navigate the situation. 🦸♂️
It definitely matters which Realtor you choose!
