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 Dear George: We signed a contingency agreement on our house with a buyer who needs to sell his house first. The explanation from our agent was that we could continue to sell the house, and if another offer came along, the contingency buyer had five days to move forward with the closing. We now have had another offer but have been informed that the contingency buyer takes priority; we have to wait until he sells his house or the end of February, whichever comes first. Even at the end of February, the contingency buyer can decide not to buy the house and will only forfeit his earnest money.
We were not told we had agreed to wait until February, nor were we told we had locked in the price. We cannot show the house. We cannot sell the house. We've given control of our property to a stranger. Can we get out of this?
Answer: I'm assuming you signed a One to Four Residential Contract (Resale) and that the Addendum For Sale of Other Property by Buyer was made a part of that contract. In that case, the contract says what it says, and you are held to a standard of having read and understood it. Why you are blaming your agent? It appears that the buyer of your home stepped up and removed the contingency on your sale. This typically, but not always, requires that the buyer furnishes the escrow agent with additional earnest money and notifies you in writing of his decision to waive the contingency. When you signed the contract, you and the buyer agreed to the closing date of on or before Feb. 28, 2007.
If, after rereading the contract that you signed, you still believe that your agent failed to adequately represent your interests, communicate with your listing agent. Let him know that you are not happy. Ask very specific questions. For example, the Addendum For Sale of Other Property by Buyer operates via a "time is of the essence" clause, so precise times in observance of written notices must be accomplished. If the buyer failed to notify you (or your listing agent) as to his decision within the time allotted or failed to deliver additional earnest money to the escrow agent, that might be grounds for contract termination. Alternatively, you can always hire a real estate attorney to review your paperwork and advise you, which is probably what you should have done.
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| Dear George: We are first-time homebuyers whose REALTOR® also represents the sellers, and is related to the sellers. Everything had been going well until the Sellers Temporary Residential Lease came up. The sellers want to move up the closing date by 17 days. The REALTOR® asked us if we would let them stay one week for free. We decided that the sellers should pay $50 a day to cover our mortgage during this week. They refused, then asked to stay for 72 hours plus one day after closing. The REALTOR® said it was customary to give sellers 48-72 hours after closing and funding, and she would pay $50 for the "extra" day.
Is this true? Do we have to give the sellers 48-72 hours of free rent after we close? We also noticed that it was added to our contract for the original closing date that we had to re-initial. We would just like to make sure that we are not being taken advantage of since we are first time home buyers. Thank you for any help you can provide us.
Answer: If you allow a seller to remain in the seller's property for even five minutes after closing, you should have a properly signed Seller's Temporary Residential Lease. You will note that there are no pre-filled-in blanks stating that the first 48-72 hours are rent-free. You, the buyers, insert the terms of the lease that best work for you. The fact is that whatever you and the sellers reach an agreement on and sign, regarding the Seller's Temporary Residential Lease, is the only thing that matters.
If the REALTOR® represents the sellers and you, she (assuming she's the firm's broker) is acting as an intermediary in the transaction. There are special forms that are required and also notifications for the broker to act as an intermediary. Were any of these were provided to you? An intermediary must follow very explicit rules when providing advice or counsel to both parties. If the broker is related to the sellers, it's likely that the broker has a conflict of interest, unless you knew about the relationship and agreed to the broker acting as an intermediary before you signed the representation agreement.
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