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Is It a Contract?

By Liz Loadholt

Real Estate Broker/Owner with Liz Loadholt- AgentOwned Realty- Covering SC

November 16, 2009 07:52 AM

The AgentOwned Realty Company - short sale * There is a ratified contract on a "short sale" dated 9/9/2009. This is a new construction home.

* Seller's lender approved the short sale contract 9/29/09.

* Closing date was Oct. 22, 2009 with a 10 consecutive days extension clause.

* Contract called for home inspection by Oct. 8, 2009.

* Inspection could not be done because the house was not finished.

* Buyer obtaining an FHA loan & FHA final inspection could not be done on time because house was not finished.

The AgentOwned Realty Company - unfinished house * The closing date was not met because the house was not finished.

* Buyer did not like the "cheap" appliances provided by the builder, so she chose to put her own appliances in the house ---they were put in before the HUD inspection.

* Buyer had paid for the appliances -- dishwasher, micro-wave, stove, and refrigerator and they were placed in the house.

* The builder was taking so long to get everything done that the buyer decided that she didn't want the house anymore.

* On Nov 9, 2009, even though the contract closing date had passed, she still sent a release of contract. The AgentOwned Realty Company - builder

* This release was responded to by a letter from the builder threatening to sue the buyer.

* After much discussion with agent and Broker, buyer decided to go ahead with the closing because builder said it could close on Monday, Nov. 16, 2009.

* On Saturday, Nov. 14, 2009, buyer's agent went to the home The AgentOwned Realty Company - police car

to meet a home inspector -- the HUD inspection had been completed on Thursday, Nov. 12, 2009 -- when the buyer's agent showed up, there were policemen everywhere and the builder was there. The home had been robbed of all the appliances.

* Remember who the appliances belong to? Yes, the buyer.

* Now, the buyer is freaking out and is refusing to close.

* No addendum was ever done to extend the closing date.

Does the buyer have a contract or not? What do you say?

Mama Liz's Signature

Liz Loadholt

Broker, SC Certified Trainer, Relocation Director
Co-founder of AgentOwned Realty
Liz@AgentOwned.com
843-725-5007

The AgentOwned Realty serves your real estate needs for:

Charleston, Johns Island, James Island, Mt. Pleasant,
Isle of Palms, Sullivan's Island, Daniel Island, North Charleston,
Summerville,Goose Creek, Moncks Corner, Santee, Manning, Sumter, Florence, & Myrtle Beach, all in South Carolina

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Todd Clark - Retired

eXp Realty LLC - Tigard, OR

Principle Broker Oregon

The contract expired on the original date of scheduled closing, if there was no addendum to extend the closing date, there is no contract! (Sorry builder)

Todd Clark - www.LivingBeaverton.com

Nov 17, 2009 07:46 AM

Michael Johnson

Carolina One Real Estate - Goose Creek, SC

Metro Charleston SC

Contract expired with no extension, thus there is no longer a contract. When he threatened to sue I would have laughed and called my attorney. I would also contend that the builder may be liable for the contents of the home to include the appliances that were stolen.

Nov 18, 2009 09:04 AM

Michael Johnson

Carolina One Real Estate - Goose Creek, SC

Metro Charleston SC

Liz, was there any sort of clause in the builder's contract that stated that only a certain percentage had to be completed in order for both parties to proceed to closing. I've seen that in a few new construction contracts.

Nov 18, 2009 09:06 AM

JL Boney, III

Coldwell Banker - Columbia, SC

Columbia, SC Real Estate

I would guess that without a written extension of the contract then it was toast after the closing was not met and the ten consecutive day extension ended. I hate to try and figure out a situation that I am not involved in first hand though.

Nov 18, 2009 11:16 AM

Liz Loadholt

Liz Loadholt- AgentOwned Realty- Covering SC - Mount Pleasant, SC

Realtor--Broker-in-charge - Trainer--Relocation Director Covering SC

Donna --- I agree with you --- this is a small builder and the SC state contract was used.

Nov 19, 2009 01:11 AM

Liz Loadholt

Liz Loadholt- AgentOwned Realty- Covering SC - Mount Pleasant, SC

Realtor--Broker-in-charge - Trainer--Relocation Director Covering SC

Dorie --- interesting --- I'm really wondering that myself --- the potential buyer's insurance has not started and I doubt that the seller has any.

Nov 19, 2009 01:12 AM

Liz Loadholt

Liz Loadholt- AgentOwned Realty- Covering SC - Mount Pleasant, SC

Realtor--Broker-in-charge - Trainer--Relocation Director Covering SC

Kevin --- thanks for stopping by anyway.

Nov 19, 2009 01:13 AM

Liz Loadholt

Liz Loadholt- AgentOwned Realty- Covering SC - Mount Pleasant, SC

Realtor--Broker-in-charge - Trainer--Relocation Director Covering SC

Ted --- thanks for stopping by ---I say that there is no contract, but the seller is arguing that there is.

Nov 19, 2009 01:14 AM

Chip Jefferson

Gibbs Realty and Auction Company - Columbia, SC

No extension no contract. But the buyer is out of the appliances with no recourse. Why would a buyer put in appliance before the closing is beyond me. I would never let that happen.

Nov 19, 2009 01:45 AM

Liz Loadholt

Liz Loadholt- AgentOwned Realty- Covering SC - Mount Pleasant, SC

Realtor--Broker-in-charge - Trainer--Relocation Director Covering SC

Kathryn ---- a buyer must have the FHA inspection, however they can wave their personal inspection.

Nov 19, 2009 02:26 AM

Liz Loadholt

Liz Loadholt- AgentOwned Realty- Covering SC - Mount Pleasant, SC

Realtor--Broker-in-charge - Trainer--Relocation Director Covering SC

Irene ---- I say there is no contract, but the seller is arguing that there is.

Nov 19, 2009 02:27 AM

Liz Loadholt

Liz Loadholt- AgentOwned Realty- Covering SC - Mount Pleasant, SC

Realtor--Broker-in-charge - Trainer--Relocation Director Covering SC

Todd ---- I agree with you, but the seller is arguing that there is ---to be continued.

Nov 19, 2009 02:27 AM

Liz Loadholt

Liz Loadholt- AgentOwned Realty- Covering SC - Mount Pleasant, SC

Realtor--Broker-in-charge - Trainer--Relocation Director Covering SC

Michael ---- Thanks for stopping by --- I say that there is no contract, but the builder is arguing differently. I hope you are right about the appliances.

Nov 19, 2009 02:30 AM

Liz Loadholt

Liz Loadholt- AgentOwned Realty- Covering SC - Mount Pleasant, SC

Realtor--Broker-in-charge - Trainer--Relocation Director Covering SC

Michael ---- No, there not such a clause --- there was the normal state contract used with a short sale addendum which was satisfied.

Nov 19, 2009 02:31 AM

Liz Loadholt

Liz Loadholt- AgentOwned Realty- Covering SC - Mount Pleasant, SC

Realtor--Broker-in-charge - Trainer--Relocation Director Covering SC

JL ---- I understand ----I say that there is no contract, but the builder is arguing that there is --- to be continued.

Nov 19, 2009 02:32 AM

Liz Loadholt

Liz Loadholt- AgentOwned Realty- Covering SC - Mount Pleasant, SC

Realtor--Broker-in-charge - Trainer--Relocation Director Covering SC

Laura ---- I agree with you about the appliances --- I say there is no contract and the buyer is out of the money for the appliances, probably --- the builder is arguing that there is a contract.

Nov 19, 2009 02:35 AM

Lisa Thompson

AgentOwned Realty - Summerville, SC

I'm always here to help!

I would have to say there is no contract. And, the buyers putting in appliances before closing- NO NO NO

Nov 19, 2009 07:13 AM

Liz Loadholt

Liz Loadholt- AgentOwned Realty- Covering SC - Mount Pleasant, SC

Realtor--Broker-in-charge - Trainer--Relocation Director Covering SC

Lisa ---- you and I are on the same page with this. the saga continues.

Nov 20, 2009 03:20 AM

Rich Kruse

Gryphon USA, Ltd. - Columbus, OH

Sounds like everyone here made a few mistakes. Is there a contract? No. Is there an insurance claim? Yes. Is it the property owners responsibility to preserve and protect the property pending closing? Yes. I'm more interested to see how long it takes for both insurance companies to deny the claim and point fingers.

Nov 20, 2009 10:01 PM

Robert L. Brown

www.mrbrownsellsgr.com - Grand Rapids, MI

Grand Rapids Real Estate Bellabay Realty, West Mic

My answer is the deal is dead. And possibly the buyer is out their money for the appliances.

Nov 29, 2009 06:03 AM