5 Things for Buyers and Sellers to Remember When Things Go Wrong with Their Real Estate Agreement
Monday Dec 12th, 2022
A real estate agreement would protect the interests of buyers and sellers. However, things can go wrong with the agreement as well. Here are few important things to remember when your real estate agreement goes wrong.
What is the buyer cannot close?
If the buyer cannot close the deal, the seller will be able to put it up in the market again for sale. Let’s assume that the price of the property is $1,000,000, but it is sold for $900,000 during this resale attempt. Then the seller can sue the buyer for the loss of $100,000 along with legal fees and interest.
What would happen to the deposit when the buyer cannot close?
The deposit of the buyer would remain in a trust account of listing brokerage. The seller will need to sue the buyer in order to recover that deposit.
What would happen if the buyer signs purchase agreement, but changes mind before deposit?
The seller will still be able to sue the buyer and cover up losses at the resale stage. Moreover, it is possible to sue the buyer for not placing a deposit.
Can a seller collect what he owes by winning a lawsuit against a buyer?
There’s no straightforward answer to this question. A seller needs to carefully build a case before suing a buyer. Then it is possible to collect all dues effectively.
Should I negotiate an extension for the closing date?
Yes, this can be beneficial for both buyer as well as the sellers. For example, buyers will have extra time to arrange their financing. However, seller will need to negotiate all terms and conditions with related to the extension. Seller may also request for an additional deposit to proceed with the extension.