Moving to the Second Buyer without a Release

Moving to the Second Buyer without a Release

Question:

I accepted an offer on November 22nd which was conditional until November 30th on financing, inspection, insurance and status certificate.

The inspection is conducted and no waivers come in on the 30th. mes. He keeps saying he'll bring it.

The time period passes and we hear nothing. The property is placed back on the market and the other agent sends in Waivers.On Nov 6th house is put back on the market.

Once the agent sees the house is back on the market he emails the waivers saying "just use these because typing up a mutual release then a new offer will be too much work".

House sells to someone else (on the condition of us being released from the previous deal). Now first buyer is all pissed and won't sign the mutual release.

Can we waive the mutual release condition? Can we go ahead with the 2nd sale? I have a paper trail of everything, is that good enough for the Brokers to sort it out or will lawyers get involved?

On Nov 6th house is put back on the market.

Once the agent sees the house is back on the market he emails the waivers saying "just use these because typing up a mutual release then a new offer will be too much work".

House sells to someone else (on the condition of us being released from the previous deal). Now first buyer is all pissed and won't sign the mutual release.

Can we waive the mutual release condition? Can we go ahead with the 2nd sale? I have a paper trail of everything, is that good enough for the Brokers to sort it out or will lawyers get involved?

The house is sold to Buyer #2 on condition that Buyer #1 signs a release, but Buyer #1 will not co-operate.

Can we just waive the Mutual release condition in the second deal?

Answer:

You have some interesting issues here. That first deal needs to be terminated so that you can move on. You already have now sold it to a second buyer.

The problem is that you may have written that condition as a TRUE Condition precedent in your second deal. If you did, then “no” you can’t waive it. So, you would have to rewrite that second Offer or get rid of the clause in its entirely by Amendment.

You will appreciate that the second sale really has nothing to do with the first. You don’t need a mutual release to proceed with the second buyer. Also, “good faith” is an element of the first deal.

Also, why not keep his deposit from the first deal? There may be good grounds. But, that’s a different issue.