Buyers unable to meet financing deadline receive an ‘out of contract’ message
Dec 29, 2022By Pat Kapowich | Published: September 30, 2022 | For the Bay Area News Group and its flagships The Mercury News and East Bay Times
Q: We had 10 days to secure a home loan. Circumstances beyond our control delayed the loan process. We are late by four days removing our financing contingency. Our buyer’s agent said “not to worry.”
Today, the seller’s agent wrote that we are “out of contract.” The seller’s agent emailed a cancellation form to our buyer’s agent. The sellers signed the document. The buyer signature section remains blank.
The escrow officer emailed us a cancellation form to sign. They also included a document that returns our earnest money deposit if signed. The buyer’s agent said the sellers resold the property. We will not cancel our sale.
We received an email to hire a real estate attorney to settle this matter. The realty office sales manager and real estate attorney told the buyer’s agent to stand down.
A: Meet with a real estate attorney. One shouldn’t ask a patent attorney for advice after a car accident. The real estate attorney can read the chessboard moves with their common legal disputes. A home seller who accidentally sells their property to multiple parties is commonplace. It’s usually the fault of the seller’s agent.
Your buyer’s agent did not provide consumer-protection duties. The seller’s agent played the role of attorney, judge and jury by declaring you and your spouse “out of contract” and reselling the property. The seller’s agent did not perform their risk-management duties.
The well-established phrase in organized real estate that a licensee should never utter is “out of contract.” The legal profession wants defaulting homebuyers to use every avenue to cure the default or agree to cancel the sale. There are procedures to follow when a home sale comes apart. It is the wayward seller’s agent who unilaterally declares a home sale broken, does not follow protocols and resells the property. After all, home sellers follow the advice of the seller’s agent they entrusted. It is why real estate attorneys remind us that home sellers repeat the phrase during litigation: “We relied on our agent.”
Questions? Or are you or someone you know navigating life’s transitions? Let lauded negotiator Pat Kapowich make your next move easy. Visit Kapowich’s website for free area housing data, insights and trends. Or put his artful blend of specialized credentials, decades of experience and endorsed skill set to work for you. Kapowich instills confidence when buying, selling, relocating or resizing homes. Do not just make a move — make the best move. Contact him today, Realtor Pat Kapowich, a career-long consumer-protection advocate.
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