walking away from contract
Is it possible for us to walk away from our contract and get the 10% deposit back in case we are 30 days delayed from our initial closing date and the tenants are still there so our closing date is further delayed? We heard that both seller and the buyer (us) has to mutually agree…
Is it possible for us to walk away from our contract and get the 10% deposit back in case we are 30 days delayed from our initial closing date and the tenants are still there so our closing date is further delayed?
We heard that both seller and the buyer (us) has to mutually agree in order to get our deposit back, but what if the seller is dragging out the closing date for unknown amount of time?
Just to update in case it helps anyone who might go through a similar issue: we ended up writing a rider that allowed us to walk away – and after 7 months of waiting to close due to sellers issue- we closed! We could have had more proactive lawyer to save all our headache.
Are you getting good advice from your lawyer? If buyer and seller agree, then no problem. What you are really asking is what happens if buyer and seller don’t agree. that would mean you and seller have a disagreement as to whether seller is in default. You are asking whether you would win a lawsuit to recover the escrow if seller refuses to consent. The escrow agent who is in charge of the money is not in a position to decide the merits of the dispute. So this all turns on how right you are that, under the contract, seller’s failure to deliver vacant puts him in default. If you are plainly right, it is less likely they would force you to litigate to recover the funds. But that is really waht you are asking. Yuo need good counsel from your attorney on this. If you suspect you aren’t getting it, post again.
If your lock is expiring, I don’t think it is likely that rates are up from where you locked in, so you might be able to extend your lock if you think there will be movement on the tenant front. So check with your bank/mortgage broker about what the options for extending or a new lock (lower rate??) might eb while you work this out, if you decide that is how you want to go.
Check to see if there is a provision in your contract linked to your financing…in our contract, there was a clause that stipulated that if you had to renew your financing (i.e. your interest lock expired) due to actions by the seller, then we had the option to walk away and get our deposit back. Check with your lawyer.
Ask your attorney. If it is new construction, the answer is probably no, but depends on the contract. Talk to your attorney.
this is why you have a lawyer
is there a “time is of the essence clause”? does the contract say you have to close by a certain date? will your mortgage lock clause expire? ask your attorney.