Anyone cancel a purchase?

[RyanDisneyDad]

We are still waiting on the sellers to return their closing documents. First round of documents had June 26th as closing date. We had our documents and cheque in before that date. We received an email from our broker saying the sellers weren't in a hurry to close as they were selling multiple contracts. We paid a small premium for extra expiring points compared to the other contracts they are selling ($7pp). I emailed the broker stating we paid extra for those points and want to use them. The Disney letter passing rofr is dated June 17th. If the people dont close soon those points will be useless. It's still not a bad price for a contract but more then others are paying and I'm now thinking of using clauses to get out. Has anyone ever backed out at this point? Any advice?

 

[hlhlaw07]

We are still waiting on the sellers to return their closing documents. First round of documents had June 26th as closing date. We had our documents and cheque in before that date. We received an email from our broker saying the sellers weren't in a hurry to close as they were selling multiple contracts. We paid a small premium for extra expiring points compared to the other contracts they are selling ($7pp). I emailed the broker stating we paid extra for those points and want to use them. The Disney letter passing rofr is dated June 17th. If the people dont close soon those points will be useless. It's still not a bad price for a contract but more then others are paying and I'm now thinking of using clauses to get out. Has anyone ever backed out at this point? Any advice?

I have, but I actually waited almost 6 months past the closing date hoping the sellers would just turn in their paperwork. (It was an amazing deal on VGF) Alas, they never did and I finally saw the writing on the wall that it was never going to happen and gave notice that I was walking away because the seller was in default.

 

[KAT4DISNEY]

That was a pretty quick turn around on Estoppel and closing if the ROFR letter was June 17th and you had everything back before the 26th!

Read your contract to see what the details are but I'd believe that since the closing date is passed you can back out if you want without penalty. I'd let the broker know you are going to do that if the seller doesn't return the documents by some selected date - say 7 days assuming that you still want to try and get the contract. I ended a contract as a seller because the buyer kept coming up with excuses and requests to extend. As I had fulfilled my part I technically was entitled to 1/2 of their deposit and 1/2 to the broker but decided to return that to them instead.

 

[Chrisizzle]

“Not in a hurry to close” is a great reason to not accept and offer to wait for a better one. It is absolutely no excuse not to close a transaction they agreed to. I would not only walk away from the deal, I’d walk away from the broker who accepts that an excuse from their seller.

However, it all depends on the contract and how long each person has to fulfill their obligations. I would hope there is language that says what a “reasonable” time to respond is.

 

[RoseGold]

It's still not a bad price for a contract but more then others are paying

Then read your contract carefully and make the choice that works for you. Plenty of contracts in the sea. June 26 was a long time ago.

 

[cvjw]

We had to. We unknowingly agreed to purchase a BWV contract that was part of an estate. We passed ROFR, but the sellers would not send in the closing documents. Since it was part of an estate, there were extra documents from multiple heirs. It got so bad that the sellers stopped taking phone calls from the broker.

Once we passed the “close by” date in the contract, we cancelled. We got our money back. We hated to cancel, it was a great contract, but we found an even better one later that we still own!