Speaking of Housing.................buying question

Discussion in 'Homesteading Questions' started by ToraAnne, Oct 8, 2005.

  1. ToraAnne

    ToraAnne Well-Known Member

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    My husband and I are in the process of buying our first home. We are quite excited. We will have a small place--only one acre but perfect for us. Because of the loan situation and the way the did it--the house had to be appraised for about $10K more than the asking price so we could use the equity as the down payment, closing costs etc.... Well the house actually appraised at $17K more than the asking price. Of course now the seller is mad and is not wanting to sell us the house even though we have a contract on it. We are even paying the survey because he didn't want to pay that--so he could get out of the contract. To say the least my stomach is knots 24/7.

    My question---if we get to the table and he decides not to sign---does any one knows what happens then? Is he required to give us back the survey and apprasial $$? I know we get the escrow $$ back. Do I need to get a lawyer for "just in case." My husband and I have discussed it and we are willing to go to court if needed to recover our costs. *sigh* Any one wanna give me hope?
     
  2. marvella

    marvella Well-Known Member

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    what made the guy mad? that the appraisal came in over what he wanted for it?

    probably, in an ideal world, he should never have found out what it appraised for. your finances, and appraisals etc are nobody's business except yours and the banks.

    did you have a realtor? if not, it might be a good idea to contact a lawyer who is familiar with real estate. after buying a couple of places i feel like i have a basic understanding of how to go about buying property without a realtor, but the first sign of something not going according to plan, i'd call a lawyer. the potential for a big financial loss is pretty great. sometimes it just pays to pay a professional, just so stuff goes as smooth as possible.
     

  3. Cosmic

    Cosmic Well-Known Member

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    Lot of it will probably depend on what state you are in and exactly how the contract was signed. Is it a standard contract or are there extra conditions added?????

    I just sold a house and had wrote into the contract an ironclad right for the sale, the buyer could not back out, I could not back out. Basically if he tried to weasel out I could attempt to collect the money by trying to get his other assets. I did it via a standard contract and then a follow on very binding separate contract that had tons of conditions written by me once he got by the initial getting the money part. All depends on what you sign. The standard contracts are just not that strong.

    More a lawyer thing but would seem to me, if he weasels and you have met the terms of the contract, you should at least get some damages, might even be able to force him to sell. Got to know exactly what you are signing. Many of the standard contracts might let him out. There is probably a statement to the effect your only resort is to get all your money back. You really need extra language to nail the other guy to the wall. You may have some recourse if he backs out and attempts to sell at a higher price to someone else in a short period of time.
     
  4. Beeman

    Beeman Well-Known Member

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    It all depends on the contract you signed. If you aren't using a realtor or a lawyer at least be very sure to investigate the title and buy insurance.
     
  5. ToraAnne

    ToraAnne Well-Known Member

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    we do have a realtor and the seller contacted me today. Apparently he is not planning to back out of the home, as he offered me furniture from it. Thank you for all your help.
     
  6. Qwispea

    Qwispea Well-Known Member

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    Use common sense...Most contract law is common sense like this. If the seller backs out of the contract for no valid reason then you should be able to recover all your expenses and any financial damages. Likewise if the potential buyer were to back out of a offer to buy...the seller could recover all his expenses and any financial damages.

    Contrary to what some people believe, a seller most likely could not "force" a sale against a potential buyer if the buyer backed out for an unforeseen reason...like loss of job or previously unknown medical diagnosis...etc. A offer to buy is a contract...but it is not the mortgage. The mortgage comes after. Think about it.



    I'd be very cautious about bogus apprasials...they may even be illegal when a mortgage approval depends upon a fair and accurate apprasial. I've known some people who were refused a mortgage for the sole reason the home was not properly appraised.
    Again...use common sense. The seller may be able to legally back out if there is any suspicious activity surrounding property he currently owns....a seller is not obligated to be a party to an illegal transaction.