QUESTION
Will I get in trouble if void the agreement and accept the other offer?
Asked on Nov 11th, 2021 on Real Estate - Michigan
More details to this question:
I am selling a home to a "investor" He made an offer for $45,000. I accepted. We signed purchase agreement on 10/07/2021. He inspected it. I am closing on a new home down south and he knows i am relying on the sale of the home for the down payment. He told me we would close within 2-3 weeks from 10/07/2021. I have messaged him and he says he hasnt heard from his title company and doesnt have any information on a closing date. Im worried i wont be able to close on my new home if i dont get the other one sold. I have another offer on the home with proof to close in 7 days.
1 ANSWER
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Sadly, the contract is binding.
Your options are:
find out the actual closing date on the house you are selling and get an extension from that buyer- you might have to pay a few hundred to get the extension
you need to send notice to your buyer that you expect to close by a date certain and he is to release you if he can't perform by then, demand he put it in writing and demand prooof of funds from the new buyer
you can also go to buyer number two, ask them to pay an additional $1000 for the property and offer a $1000 breakup fee to the current buyer for release from the current agreement.
I hope this helps.
Answered on Nov 12th, 2021 at 7:22 AM