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Contract pending.  I represent the seller.  Closing date is set for 4/13/09.  Buyer passes away 3 days ago while sale is pending.  What are your thoughts?  Is the contract binding?  Do we continue with the transaction?  Although the buyer is deceased, are the heirs or the estate still obligated?  Give me your input.  I await your response and thank you in advance.  I eagerly await any and all responses.

Paul

www.myNCbroker.com

 
Posted by Paul Hockaday on 03/14/2009 01:08 AM   Comments (12)   Home Selling Advice in the ActiveRain Channel   buyer, seller, contract, pending, wilmington, nc  
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12 Comments on Does the contract survive?

MAR
14

Does your purchase agreement say the heirs must take over the contract? If it does then they could but personally if I was an heir unless I really wanted the house for some reason I'd walk away. Not what you wanted to hear but that would be how I would look at it.
1:42am • #1
Outside Blog

As far as I am familiar with contract law, the contract is null and void with the death of either party.

 
1:45am • #2

I learned in Real Estate school that the contract is no good if one of the parties to the contract dies.
3:31am • #3
287,267 Points 4 Featured Posts Outside Blog

NO its no longer valid. The seller could wait and go to probate for payment but I don't think that would fly either.
6:04am • #4
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What does the contract say??? 

Of course, if the contract survives for the "heirs and assigns". 

Of course, if the contract survives for the heirs and assigns, so too does the financing contingency.

What does the contract say???
6:59am • #5
221,087 Points 4 Featured Posts Outside Blog

If you want to pass the real estate exam, the contract passes to the heirs. However, in the real world you need to review the contract with a real estate attorney in your jurisdiction.
8:05am • #6
151,361 Points 2 Featured Posts Localism Sponsor Outside Blog Hit Router

Tough situation!  In the real world - do you really want to hold the heirs accountable for this?  I agree that the advice of an attorney may be called for in this case.
9:56am • #7
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"Assuming a standard contract", it is my understanding that the contract becomes unenforceable, however the seller would get to keep the earnest deposit.

How did the buyer die?

:)
11:32am • #8

I am not sure about NC's contract law, but I think you and your client are back to house hunting. What was number 2 on their list.
1:54pm • #9
547,010 Points 11 Featured Posts Outside Blog

Paul,

I agree with the other comments. It depends on what the contract says and what your state law provides. It could be void, but you need to check. :)

Steve
9:27pm • #10
APR
13

Thank you all for responding.  The contract does survive for heirs and assigns.
1:00pm • #11
1 Featured Post

In SC it would survive too.  But in everyday life, most sellers would probably release the buyers' heirs.
9:30pm • #12

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Paul Hockaday

Wilmington, NC

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