Here we go...
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
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.
As far as I am familiar with contract law, the contract is null and void with the death of either party.
I learned in Real Estate school that the contract is no good if one of the parties to the contract dies.
NO its no longer valid. The seller could wait and go to probate for payment but I don't think that would fly either.
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???
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.
"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?
:)
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
Thank you all for responding. The contract does survive for heirs and assigns.
In SC it would survive too. But in everyday life, most sellers would probably release the buyers' heirs.
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