Has anyone ever had a seller back out?

[ChandraM]

I am in the process of purchasing a resale contract and returned my closing documents to the title company 2 weeks ago. The sellers still have not returned theirs. Should I be concerned?? Has anyone else ever had this happen before? Are there any consequences for sellers who back out at this point in the process? The due date on my documents was not until November 21st, but you would think the sellers would be eager to get their money.

 

[Marionnette]

I am in the process of purchasing a resale contract and returned my closing documents to the title company 2 weeks ago. The sellers still have not returned theirs. Should I be concerned?? Has anyone else ever had this happen before? Are there any consequences for sellers who back out at this point in the process? The due date on my documents was not until November 21st, but you would think the sellers would be eager to get their money.

The sellers have until the promised closing date to get their paperwork together. Sometimes it is a matter of getting all those named on the deed to do a notarized signature. Sometimes it’s a matter of collecting the funds to pay off the loan (if they are selling at a loss). Sometimes the seller is away on business or vacation and can’t deal with the paperwork immediately. And sometimes it is just the finality of it all - letting go of all those dreams of future Disney vacations.

There are consequences for backing out of a sale. IIRC, a seller is obligated to pay the commission to the agency if they don’t go thru with the sale. They may also be under obligation to pay the title agent’s fees and other incidental costs.

However, as a buyer, the only thing you get if a seller backs out is the return of your escrow payment.

There’s no harm in asking your agent to find out what is taking so long. Maybe it will light a fire under the seller to get moving. But by contract, they have until 11/21 to take care of their end.

 

[MouseOfCards]

We had one closing that was unexpectedly extended several months due to a probate sale and getting all of the multiple heirs to eventually sign the docs.

Regardless of the delay, the broker or title company should be letting you know what's going on. Agree with PP, keep asking them for an update and hopefully get them to light that fire under seller.

Best wishes to you!

 

[ChandraM]

The sellers have until the promised closing date to get their paperwork together. Sometimes it is a matter of getting all those named on the deed to do a notarized signature. Sometimes it’s a matter of collecting the funds to pay off the loan (if they are selling at a loss). Sometimes the seller is away on business or vacation and can’t deal with the paperwork immediately. And sometimes it is just the finality of it all - letting go of all those dreams of future Disney vacations.

There are consequences for backing out of a sale. IIRC, a seller is obligated to pay the commission to the agency if they don’t go thru with the sale. They may also be under obligation to pay the title agent’s fees and other incidental costs.

However, as a buyer, the only thing you get if a seller backs out is the return of your escrow payment.

There’s no harm in asking your agent to find out what is taking so long. Maybe it will light a fire under the seller to get moving. But by contract, they have until 11/21 to take care of their end.

Thank you, I had not considered all of these possibilities. Especially the point about them needing to come up with some money too. They were originally asking a very high price and while I'm not paying the full asking price, I'm still paying higher than average. They might have been asking for that higher price because they still owed that much!

 

[Sandisw]

Arranging everything can take time. As someone who has sold before, it took me about a week to get my husband and I to coordinate a time to see the notary.

In terms of penalty, my understanding is that a seller who backs out would still owe commission to the broker. The buyer would get the deposit back, but I believe that is it.

I think it’d be rare for a seller to back out, but things happen that could cause an issue.

 

[Deb & Bill]

Sellers have backed out in the past because they didn't realize the proceeds from the sale wouldn't cover what they owed on their contract and they have to pay it off before it can change hands officially. But they are still liable for the commission to the agent which probably makes them madder.

 

[DougEMG]

I've had a seller back out. And while the resale company is owed their commission, it is pretty hard to collect when the seller backs out.

 

[Deb & Bill]

I've had buyers back out after ROFR and I've enjoyed spending my portion of their deposit.

 

[ChandraM]

Update: I just got a message from the broker that the closing documents from the seller have been received. Thank you all for the info and reassurance!

 

[CarolMN]

Welcome home! Hope your contract & points get loaded quickly so you can get that first trip booked.