The Buyer decided to terminate the contract based on the findings of the inspection after @ 6 days of exhaustive inspections. The 6 days were full of inspections and re-inspections, and there was much communication between the Listing Agent and the Selling Agent about what was happening. The Seller had actually even decided to make a few of the repairs before there was even a resolution . . . and by the time the Buyer had finally decided to submit an official Inspection contingency release, the Seller was fresh out of patience . . . and the Buyer was 24 hours past the dead-line for submitting the release per the contract.
The Seller responded to the request for repairs with a resounding "NO!" . . .
The Buyer got his feathers ruffled by the rejection and decided to kill the deal "based on the findings of the inspection".
The Seller cried: "DEFAULT!" and expects to be able to keep the earnest money because of the missed deadline . . . The Buyer feels he deserves the earnest money because he had communicated throughout the 6 days and simply had not noticed that the deadline had passed.
The Buyer's agent admitted to having lost track of the days and said that he "knew it was a day late, but the Buyer has decided to terminate the deal. Certainly the Seller would understand???"
OK - Now . . . Let's get REAL!
The Seller is trying to sell a house in the worst market we've seen in 15 years. He had a qualified Buyer under contract and had bent over backwards to try to appease the Buyer's demands . . . Don't you think this Seller was probably counting the MINUTES til the expiration of the inspection contingency period? Once that deadline passed, he would feel confident that he would be able to close without any further repair obligations, and the Buyer would not have any other contingencies as escape hatches.
Of course, the deal came to my desk. My agent was the listing agent. He had documented EVERYTHING. This was as cut and dry as I have seen in a LOOOONG time. The Buyer had NO leg to stand on, and I am certain it was the Buyer's agent whose eye left the ball and missed the deadline while the Buyer was absorbed in the details.
The Buyer's Broker called and demanded the earnest money to be released. I asked: "On what grounds?" She said: "I know the Buyer missed the deadline, but they were talking the whole time. The Seller should just do the win-win."
Now, WAIT A MINUTE!
What ever happened to the validity of a contract?
I coach my agents that they MUST meet the terms of the contract - NO EXCUSES! If you're reaching the end of the inspection period, CYA by submitting a release that requires the Seller allow more time for inspections . . . Whatever you do, DO NOT LET A DEADLINE PASS. Missing a deadline is not such a big deal as long as the deal is holding together, but this market is WAY too volatile to play Russian roulette with deadlines. The days of leniency are all but gone.
This issue is not yet resolved . . . Odds are good, the Seller is not going to give in . . . Why should he?
Best,
b
Barry Owen
Productivity Coach and Principal Broker
Keller Williams Realty - Nashville, TN - Green Hills
www.creatingspaces.blogspot.com
Simply & BOLDLY Living the FourFold Way in Open Space!
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