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Daniel - This could be a sticky situation with your sellers since you already have a binding contract. The buyers might not be willing to allow the sellers out of the contract, or at least not without some sort of penalty.
Like William said, this could end up in court, and the sellers may end up having to sell.
Stevens Point, WI
White Plains, NY
this is why we make sure our sellers have an attorney representing them from day 1....we don't play attorney.... if I did play attorney, I'd say they could most likely be sued for specific performance and the courts would force them to stay with the terms of the contract, if the contract was written properly!!!
TENNESSEE HOME TEAM
I agree w/ below statements, but this sounds like a weird statement. I mean why did they want to sell? Were they intending to buy or rent? Didn't they look at prices?
It may be that the simplest solution is to find somethign they can afford to rent or buy. It seems that they should be able to afford something. (Please forgive my ignorance as I don't know your area and I'm not a real estate agent).
Stevens Point, WI
I would first let the seller know that they could end up in court. If that does not phase them...I would talk with the other agent and see if his clients are head over heels for this home or would they consider dropping out.
Stevens Point, WI
They should probably consutl with attorney. Maybe they can get out, but it could cost them. Or rent somewhere where they can afford rents.
Time for a call to an attorney.
Daniel Hayes Tammy Lankford is right! It's time to seek legal advice. The buyer could sue for specific performance
If your contract has a default paragraph I would point out that paragraph to the seller and suggest they see a real estate attorney. Then I would tell the seller that I needed to advsie the buyers agent that she did not intend to sell.
I would try to find seller an affordable rental. Before you notify buyer, seller should get a lawyer. Have a talk with seller. Be empathetic it may just be seller's remorse.
Buyer can sue for specific performance. While seller may not be forced to sell it will probably cost them more then they think to get out of deal. You're also entitled to your commission.
Good Monday morning Daniel. it looks as if they should have thought about that before they put the house on the market.
Good morning Daniel. These are never easy situations, the best you can do it meet with the seller and review all the possibilities and see if there is a solutions. If there is no resolutions, the other side needs to be notified as soon a possible.
Make it a great week!
The seller should be prepared to sell or make the buyer whole if the buyer agrees.
If no agreement is met, the seller won't do any requested repairs and will try to kill the deal and cause the buyer to walk.
in my state I would advise the seller to seek legal advice before telling anyone they did not intend to sell. A buyer could sue for specific performance to an executed contract. Might not happen, but could. Therefore I think legal advice would be my recommendation.
It sounds like the seller wasn't well educated up front. Your state may have a different rules, but in Colorado the seller isn't given too many "outs" in the contract. I don't know what your contract says. Is it a full price offer? Talk with your broker.
I would refer them to their attorney, who can explain their legal situation. Let the attorneys handle it. You will need to address the commission issue with the attorney as well, since both agents are due commission.
Better get an attorney
Like and encourage to to tell the seller to consult an attorney.
I have been told you cannot force (and I can use that term) a buyer to buy but you can a seller. That is unless there is a sellers home of choice contingency in the contract.
i have had them back out at signing. yes thats right. attorney time for sure. unless... buyer and BA say no issue and we will withdraw... is it possible that they see prices going up and want to relist later for more money?
Time to talk to an attorney. A contract is a binding legal agreement. I do not see it being easy to get out of.
Let them know that backing out at this stage will be costing them a whole lot more than high rent, including legal fees and real estate commissions.