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Before You Back Out Of That Sales Contract...

By
Real Estate Agent with RE/MAX Coastal Properties BROK.995683208

Doug Rogers Bayou Properties Realty

 The negotiations proceeded smoothly and the home sailed through the inspection process without a glitch. Title work is now complete and the two sides are almost ready to close. But wait! Uncle Joe says that prices are about to tank nation wide. According to Joe and his coffee buddies, that home you are buying will be worthless before Thanksgiving.

 What's Uncle Joe's advice? Don't sign of course! Just like buying a car, you ain't liable for nuthin until you sign at closing. But much like his Y2k predictions, Uncle Joe is wrong again. Let's see what may happen in Louisiana if a buyer backs out after the inspection period...

1) The seller may agree to cancel the transaction-- If a backup offer is available, the seller may agree to let the buyer go. Of course the agents may still be entitled to a check. Do you have 6% of the transaction price in petty cash?

2) Specific Performance-- Yeck no, you ain't getting out of our contract! The seller may sue to force closing. I've been to one of these settlements, not fun.

3) Up to 10% Damages-- In this scenario the seller collects 10% of the purchase price (and real estate commissions) as damage. Plus they get to keep your deposit!

 Real estate purchases are major transactions that impact several different stakeholders. Backing out at the last minute can cause havoc on multiple levels. Buyers who need out of the contract after the inspection period should consult an attorney for legal advice BEFORE taking any action.

Doug Rogers Bayou Properties Realty

 Information contained in this blog post should not be construed to be legal advice.

Posted by

Searching for a Top real estate agent in Destin Florida ? Need help selling your Emerald Cost home? Either way call Doug today!

Doug Rogers

Real Estate Agent 

RE/MAX Coastal Properties 

Destin Florida 32541

 

 

(318) 613-1994

 Equal opportunity housing. Doug Rogers is a licensed real estate professional in Florida and Louisiana. Each office independently owned and operated

 

 

 

Comments (12)

Tim Lorenz
TIM LORENZ - Elite Home Sales Team - Mission Viejo, CA
949 874-2247

That is correct contracts are serious legal documents.  They are not something to take lightly.

May 22, 2012 12:32 AM
Eric Peltier
Eric Peltier - Premier Mortgage Group - Boulder Colorado - Boulder, CO
Mortgage Lender in Boulder CO

Those coffee buddies are always the EXPERTS, eh?  :)

May 22, 2012 12:33 AM
Larry Lawfer
YourStories Realty Group - Newton, MA
"I listen for a living." It's all about you.

In your state aren't you allowed to shoot stupid relatives?  Just kidding, I am sure you showed the buyer all the statistics that show how Uncle Dope is flat out wrong.  Good luck with this, client education, I feel, is often our biggest task.  Best of luck

May 22, 2012 01:07 AM
Dale Bledsoe
Crown Key Realty - Tracy, CA
Realtor in Tracy, California

The experts, gotta appreciate the guys that watch the news for 5 minutes who knows more than the Realtor who has devoted his life to the business. It's that way in almost every endeavor though. The Monday morning quarterback, the armchair detective, and the always fun conspiracy theorist. Nice story.

May 22, 2012 02:21 AM
Susanna Haynie
CO-RE Group, LLC -Real estate sales and services - Colorado Springs, CO
Colorado Springs Realtor GRI CNE MCNE ePro MRP

Yes, making an offer and then entering into a contract is serious business - the buyers were NOT aware of that?

May 22, 2012 02:31 AM
Cynthia Larsen
Cotati, CA
Independent Broker In Sonoma County, CA

Sounds like Uncle Joe needs a time out. Preferrably near a swamp.

May 22, 2012 03:24 AM
Doug Rogers
RE/MAX Coastal Properties - Destin, FL
Your Real Estate Resource!

Thanks for the comments!

May 22, 2012 04:01 AM
Carla Muss-Jacobs, RETIRED
RETIRED / State License is Inactive - Portland, OR

Uncle Joe seems to be meddling and interferring with a contract.  If Uncle Joe is so knowledgable when did he get his real estate license?  Not sure about your contracts, but ours stipulate the buyer is only on the hook for the earnest money if they cancel outside of the contingencies.  They can't be sued for specific performance here.   But, their EM deposit is at risk . . . Thanks Uncle Joe!

May 22, 2012 04:20 AM
Doug Rogers
RE/MAX Coastal Properties - Destin, FL
Your Real Estate Resource!

Carla--Sometime I wish Louisiana was this way!

May 22, 2012 04:45 AM
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Doug, it is a slippery situation at this point in a transaction to have a change of heart --- you better get some legal advice!

May 22, 2012 07:21 AM
Doug Rogers
RE/MAX Coastal Properties - Destin, FL
Your Real Estate Resource!

Joan-- I agree!

May 22, 2012 08:51 AM
Marilyn Boudreaux
Marilyn Boudreaux, Century 21 Bono Realty - Lake Charles, LA
Lake Charles LA Century 21 Realtor

gotta love those cajuns it gets to be real fun during an inspection period when all the coffee buddies show up

May 22, 2012 03:23 PM