I am the listing agent on two short sale properties and this question has come up on both properties when I received offers. Does the seller profit concerning the termination option period? This is the option that gives the buyer the unrestricted right to terminate the contract for any reason within an agreed amount of days. The buyer gives a check for an agreed upon amount.
One of the buyers agent has told me they did not know who to make the check out to for the termination option period. I said the seller of course! She said "The sellers are not supposed to profit from a short sale"
I asked the other buyers agent to bring me the earnest money and the option check. He boldly stated "In NO WAY can the seller profit from a short sale, I will not be turning in an option check!"
This prompted me to call the TAR legal hotline. An attorney called me back and said if the buyers agent does not turn in an agreed upon option check, then the buyer does not have an option period. We have a valid contract just no option period.
I asked both agents to give the seller the termination option checks and if you don't ,then the buyer can opt out , but the seller will keep the earnest money.
Comments (2)Subscribe to CommentsComment