Tradgedy struck again on 9/11, when my seller received the bombshell news from me. I had to call my seller to tell him that the buyer for his home was backing out of the purchase contract, 2 days prior to closing. I represent the seller and another agent represents the buyer. The buyer had removed all contingencies, the loan was approved, property inspected, requested repairs completed. This buyer was an idiot and a flake all along. The escrow started with him bouncing the $4000 deposit check, then after another attempt it was cashed in escrow. Then after 12 days, I hadn't rec'd a pre-approval letter, so I issued a "notice to preform" and was quickly given a pre-approval letter from a lender the agent had just contacted. A week later the buyer changes lenders to Wells Fargo. I was starting to have a bad feeling about this escrow. Just about that time a call from another agent, who was monitoring the escrow and had a backup buyer. We extended the time frames and escrow 1 week to give the new lender time to finish the loan. Then on Sept. 1st I requested that "all contingencies be removed" by the buyer, which was signed by the buyer because everything was done and we were ready to close. We were scheduled to close 9/14 and on 9/13 I receive paperwork from the buyer stating he is cancelling because "the property does not meet his requirements". 1 day before the close!!!!! Can you beleive it?? The buyer even has the audacity to request the return of his $4000 earnest money deposit. To make matters worse, the backup buyer couldn't wait any longer and ended up buying another property. The seller of course has damages and is demanding the entire deposit be released to the seller as "liquidated damages". The liquidated damages clause was initialed by both parties in the contract. Now my seller is going to take the buyer to small claims court and rightfully so! Now I am have to re-list this home on the market. The home is in Clovis at 2648 Hampton Way, a 5BR 3 Bath Centex home built in 2002 with 3163 Sq ft of living space. Current listing price is $489,500
2 comments:
Tom has done everything by the book in this transaction, which is to his credit. Had he not gotten all contingencies removed in writing the buyer would have been entitled to his deposit and there would be an even more unhappy seller.
Same thing happened with a property of mine in Morro Bay. The guy was fishing for some last minute "concessions" thinking he was paying too much. In reality he was a bogus buyer. I bagged his deposit but since the deal fell through the market has dropped considerably.
It's off the market. I'll wait this drought out!
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