Canadian waiting forever for USA Buyer

[bababear_50]

Listed a small point contract April 23 2022.
OKW 25 Point 2057 expiry
Sold in a couple days.
Received papers May 5th,,, all papers signed/notarized/ sealed Fed Ex back May 6th.
Email notification copy from Mason Title of a $500.00 deposit that is being held in trust May 20th.
Email passed Right Of First Refusal May 25th.
Now nothing....................................................... June ,July
..................................................................................... End of July .... broker emailed them (per my email inquiry) and they apologized for not FedExing the signed documents back.
Again we wait ,,,,Broker just email me that he is tracking the documents and they still have not been sent,,,
He says he is sending them another email........yet to hear their response.
How long do I have to wait on this?

Thanks Mel

PS
I thought the Joke was *Canadians always take forever* not this time.!

 

[CarolynFH]

Listed a small point contract April 232022.
OKW 25 Point 2057 expiry
Sold in a couple days.
Received papers May 5th,,, all papers signed/notarized/ sealed Fed Ex back May 6th.
Email notification copy from Mason Title of a $500.00 deposit that is being held in trust May 20th.
Email passed Right Of First Refusal May 25th.
Now nothing....................................................... June ,July
..................................................................................... End of July .... broker emailed them (per my email inquiry) and they apologized for not FedExing the signed documents back.
Again we wait ,,,,Broker just email me that he is tracking the documents and they still have not been sent,,,
He says he is sending them another email........yet to hear their response.
How long do I have to wait on this?

Thanks Mel

PS
I thought the Joke was *Canadians always take forever* not this time.!

My personal opinion is that you've waited long enough. What was the closing date in the contract? If that date is past, seems like they're in default and you can withdraw from the deal and list your contract again. However, much depends on what the contract says - there should be a clause in there that deals with buyer's nonperformance.

 

[Nursemanit]

My broker writes in big letters a deadline for me as the buyer - I had 24 hours to accept the offer and 7 days for the deposit and final signed documents.

You are way overdue to call this off and keep the deposit. By June 15th I would have been calling them daily - I hate to say it but I think your buyer flaked.

Edit - was wondering why you were so patient - then realized .... Canadian

 

[Sandisw]

At this point, I’d say the buyers have walked away and I’d tell the company you are canceling the sale since you beyond the closing date.

 

[bababear_50]

Ok thanks guys
I just emailed the Broker and asked for confirmation of a closing date in the contract.
Ask what my rights are in this case.
I'm temped to just keep the contract at this point,,, although I had planned to downsize.

Mel

 

[bababear_50]

Quick question Sandisw
If I cancel the sale then do they get their $500.00 deposit back?

 

[pianomanzano]

Quick question Sandisw
If I cancel the sale then do they get their $500.00 deposit back?

What does your contract say? If they don’t finish the deal by the closing date they pretty much forfeit their deposit, and depending on the terms of the contract, you and the broker (and maybe the closing company?) get to keep their deposit.

 

[CarolynFH]

Quick question Sandisw
If I cancel the sale then do they get their $500.00 deposit back?

I'm not Sandi, but my understanding of real estate deposits is that they're a "good faith" downpayment of money and that the buyer will NOT get it back if they default on the purchase. That's the reason for collecting it, so that the buyer has some incentive to close the deal.

 

[Sandisw]

Quick question Sandisw
If I cancel the sale then do they get their $500.00 deposit back?

I think you get to keep it..or part of it..because they failed to close on time. The broker will know.

 

[DL1WDW2]

What about the commision?

 

[Nursemanit]

You suffered the loss of 3 months of market time, You get the deposit. The commission only gets paid out 1. At closing or 2. If you as the seller refuse or back out of a full-price offer. At least that is what both my contracts say.

 

[bababear_50]

Just looked up the paper work
"1. This contract shall be closed on or before 7/18/2022 or within 45 days from when the estoppel information is provided by Disney to the closing company, unless extended by other provisions of the contract. If this contract is not executed by Seller by 5/19/2022 or upon presentation, or if Disney repurchases the contract, the deposit shall be refunded to the Buyer. Buyer to escrow money and contract to The Timeshare Store, Inc. by 5/19/2022, or contract is null and void."

 

[Sandisw]

Just looked up the paper work
"1. This contract shall be closed on or before 7/18/2022 or within 45 days from when the estoppel information is provided by Disney to the closing company, unless extended by other provisions of the contract. If this contract is not executed by Seller by 5/19/2022 or upon presentation, or if Disney repurchases the contract, the deposit shall be refunded to the Buyer. Buyer to escrow money and contract to The Timeshare Store, Inc. by 5/19/2022, or contract is null and void."

You are well past the close date. Talk to the broker regarding the commission but since the buyer didn’t buy, you should not be forced to pay it. But they may keep some of the buyers deposit,

 

[pianomanzano]

Question for the experts in the group, could a new buyer replace the old one and not have it go through ROFR if the new buyer agrees to the same price/terms of the original offer?

 

[MICKIMINI]

I'm sorry you got horrible service from this broker and totally unacceptable behavior from the buyer. If you have gone past the closing date you can ask to cancel the sale. Read your contract for details stating closing date and what happens if the buyer doesn't pay. It should be clearly stated on the contract.

I had a buyer cancel on the date of closing just this year. It was a small contract with $500 down. I think we ended up with about $200 of the deposit by check within a week. The closing company was Mason. We just kept the contract. The buyer was out the $500.

Personally, I would never accept a down payment again of less than $1000 based on my experience no matter how small the contract is.

Good luck!

EDIT: I just realized you have the whole FIRPTA thing going on being a Canadian! Does that broker have to pay for the specialist to do the paperwork, I believe...what a mess?

 

[Sandisw]

Question for the experts in the group, could a new buyer replace the old one and not have it go through ROFR if the new buyer agrees to the same price/terms of the original offer?

No. It would be considered a new deal and start all over

 

[bababear_50]

I'm sorry you got horrible service from this broker and totally unacceptable behavior from the buyer. If you have gone past the closing date you can ask to cancel the sale. Read your contract for details stating closing date and what happens if the buyer doesn't pay. It should be clearly stated on the contract.

I had a buyer cancel on the date of closing just this year. It was a small contract with $500 down. I think we ended up with about $200 of the deposit by check within a week. The closing company was Mason. We just kept the contract. The buyer was out the $500.

Personally, I would never accept a down payment again of less than $1000 based on my experience no matter how small the contract is.

Good luck!

EDIT: I just realized you have the whole FIRPTA thing going on being a Canadian! Does that broker have to pay for the specialist to do the paperwork, I believe...what a mess?

Hi Hon
Thanks for the good thoughts.
Sorry you had this happen to you.... yeah I think I'll just hold onto the contract.
Yep next time I will ask for more of a deposit from a buyer.
I do not believe FIRPTA happens until the contract is closed and I already directed Mason Title that I would NOT be claiming FIRPTA.
Hopefully Broker & Mason Title can figure this out soon.

Regards
Mel

 

[bababear_50]

Broker took care of the whole situation.... just received a Fed Ex package with 50% of the deposit check.
Thanks again for everyone's help.
Hugs Mel