Back on Market (BOM) is a frequent status I see these days and I'm not surprised. Most often its due to a condition of the home which the Seller is not willing to repair when discovered by an inspection. On ocassion its a result of the Buyer not qualifying. Regardless of why the house goes BOM, there are some important things Sellers and Buyers should consider.
1. Disclosure - All previous inspection reports should be disclosed. The first thing I always is is, why did the deal fall apart? If it was the Buyer, fine. But if it was a repairs issue, then I ask for the inspection report so my Buyer can review before wasting valuable time. If it was a deal breaker for one, then potentially could be a deal braker for another. If it was repaired, I want the receipt and warranty of the repair.
2. Termination - If the Buyer falls out, then it can easily be assumed by the Seller they should put the house BOM. But if the Earnest Money is in question, then it could be a legal issue for the Seller. Perhaps they shouldn't move quickly to put it on the market. If the Buyer believes the Selle wronged them, they could sue for specific performance. Meaning, the Buyer can force the Seller to sell the home if in a court it is proven the Seller defaulted. I was reading an industry journal on that today and TREC's consens is, don't put the house on the market until the EM has been refunded and you receive a letter from Buyer that they release the house.
3. Escrow - Title companies may not open another escrow if there is one already in place. If a Buyer is considering a BOM they should confirm as well as the disclosures if the previous EM was released to prevent a possible double escrow account.
Just things to think about to exercise best practice.
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