buyer backing out of contract

[ffcheff]

Has anyone ever had a buyer not turn in their contracts to close? I am waiting on a buyer to send in their contract and I am getting nervous. we are suppose to close by tomorrow.

 

[disneynutz]

I suppose that anything can happen.
Not everyone lives Disney and buying or selling a contract isn't a priority and they have other things going on in their lives. Some may live in other countries and or require that documents be notarized which can delay things. They may have to arrange for a loan payoff or come up with the payoff money.

Bill

 

[supersnoop]

On the buyer side? That seems more unusual. On the bright side, you get to keep their deposit.

 

[JimMIA]

For a BUYER to back out is indeed unusual, although people do change their minds (and are allowed to for a short time with no penalty - 10 days in Florida).

SELLERS sometimes back out, usually because they are clueless and didn't realize they had to pay off their loan as part of the closing. Those folks are usually underwater on their loans and don't have the funds to pay IN at closing.

 

[gharter]

That does seem strange. If the buyer were to back out, I would have expected it to happen with in a few days of agreeing to purchase and certainly long before closing time. Even if they were extremely busy, I would think they would take the time to send in those documents. As a buyer, we had that form sent back the next day.
Hopefully it all works out for you.

 

[sndral]

Well, isn't closing when the buyer has to pay the big lump sum for the contract?
So it's possible that the buyer couldn't come up with the money, or is scrambling to get their funds together, or to get their loan done.
Have you called the broker to have them inquire of the buyer what the hold up is?

 

[KAT4DISNEY]

I had a buyer keep having things come up. When we hit the closing date in the contract and they wanted another week because of something else I just said enough. We had already been ready to close for at least 4 weeks, probably closer to 6 but it's been awhile. So, yes, it can happen, but it's relatively rare.

 

[ffcheff]

buyer says he sent the closing documents in. Broker checking with title company. I hope for good news tomorrow.

 

[Deb & Bill]

I had two buyers back out of the sale on one contract. I listed the contract, got a buyer, went through ROFR and they backed out. I got half their deposit. The contract was relisted, got another buyer, went through ROFR and they backed out. Got half their deposit, too. Took the contract off the market and made a couple hundred bucks on it anyway.

 

[gharter]

buyer says he sent the closing documents in. Broker checking with title company. I hope for good news tomorrow.

Good luck, hope it all works out.

 

[sarah4770]

I sold a small contract a couple years ago. I sent in my notarized documents 2x, and the title co contacted me about sending the documents a third time. Each time the title co said they did not receive the documents. The third time I contacted my agent, and said if the sale fell through, I would be very upset.
My documents were found a few days later without me having to get them notarized a third time. It was a title company frequently used on this board.

 

[gdrj]

buyer says he sent the closing documents in. Broker checking with title company. I hope for good news tomorrow.

You would think you would send FedEx or some other carrier with tracking information. Should not be that difficult.

 

[sarah4770]

I sent Fed Ex and title co still said they did not receive. It really could be the title co.

 

[nluvwithdisney]

We are the buyers and are waiting for the sellers to return the closing docs to the title company. Title company informed is that's what they were waiting for. Maybe I'll check with the broker to see where it stands. Closing docs were received a week ago.

 

[gharter]

In reading different stories of the selling process, it seems to be all over the place. Some buyers don't send in the paperwork right away. I was excited and wanted it sent in as fast as possible. Some sellers take up to a month to get the paperwork back. I would think they would want to send it right away. They don't get their money until after it closes.
I understand that sometimes, the seller may be away when this is occurring. Other times, it may be difficult to get the document notarized while trying to work.
Fortunately, our seller was timely.

 

[ColinBlair]

Just to be complete on reasons from the seller side, the sellers are often a separated or divorced couple. Getting the two of them in the same room with a notary can be a challenge sometimes, especially if one of them is being forced into selling. On the contract I bought it took the sellers many weeks to get their paperwork in. They were divorced and I was told the delay was due to notary problems.

 

[nluvwithdisney]

Just to be complete on reasons from the seller side, the sellers are often a separated or divorced couple. Getting the two of them in the same room with a notary can be a challenge sometimes, especially if one of them is being forced into selling. On the contract I bought it took the sellers many weeks to get their paperwork in. They were divorced and I was told the delay was due to notary problems.

I understand those issues but they need to keep the title company aware. The buyer has turned in all paperwork and funds to close the process. It's bad business. If the sellers couldn't agree to sell then it should never be accepted as a listing unless all owners agree and recognize the closing date listed on the docs is what the buyer is expecting that the seller abide by.

It just gets frustrating when the buyer is sold the seller hasn't returned documents yet but my cash is out there and I have nothing yet to show for it. I know patience is a virtue but you would think the seller would be well aware of what is expected of them.

 

[gharter]

I understand those issues but they need to keep the title company aware. The buyer has turned in all paperwork and funds to close the process. It's bad business. If the sellers couldn't agree to sell then it should never be accepted as a listing unless all owners agree and recognize the closing date listed on the docs is what the buyer is expecting that the seller abide by.

It just gets frustrating when the buyer is sold the seller hasn't returned documents yet but my cash is out there and I have nothing yet to show for it. I know patience is a virtue but you would think the seller would be well aware of what is expected of them.

This just sounds like a bad deal. Sorry you are stuck in the middle. It would be very frustrating to have your part done to close the deal and have the other dragging their feet, no matter what the reason.
Does your broker have any idea what is going on with them? They have a vested interest as they don't get paid until the deal is finalized. Maybe they could contact the seller. I doubt the title company will be much help.
I'm not sure if the closing date is considered binding or if it really is more of an estimate. Our contract did not list a closing date, rather said under 75 days from signing.

 

[a742246]

From what I learned from purchasing/selling resale is you have to be on top of the process from the beginning to ending. You have a seller, buyer, broker, title company, Disney, and County Clerk all involved in a sale. A lot can go wrong or overlooked!

Total process usually takes 12-14 weeks, now long has it been for you? Longer if the buyer, and seller live outside of the US.

 

[ffcheff]

So My deal did fall through and to take the cake I find out the buyer never sent in a deposit. Is there any can I go after my broker or the title company for failing to follow through on my behalf? Do not want to waste money on a lawyer for nothing.