What happens if a Seller refuses to sign termination papers

Question

I'm pass my DD period and im okay with that. I am fine with having to lose my dd and earnest money. That's the cost of wanting to invest in real estate. My agent sent the termination paperwork and called the agent but they are not answering. What happens if they never sign? Can they do that? What options do I have.

Quandra Adams · Answer

@Mike McCarthy, I thought about negotiating but I honestly thought I would have found and solidified a deal by the end of my lease. Which is June 30th. So I never said anything. I will talk to her though. According to her, I am the best tenant ever (she has literally told me this). Never late in 5 years, never any major concerns at the property or anything. So I may have some negotiating power but she also does not have to budge. Those are great ideas though! thanks.

Quandra Adams · Answer

@Wayne Brooks, not sure why they would have any trouble getting it. The DD period has expired and I am not nor will I ask for it back. It's theirs and rightfully so.

@Mike McCarthy, I started to add all the finer points but realized that it may not matter to the situation but okay, I'll bite.

First off, I was sticking with the decision to buy this property for all the wrong reasons. A rookie at it's finest, I know.

1- the numbers looked really great but the property needed some work before I can rent it at an amount for the numbers to work. Every contractor I had on the hook backed out for timing reasons or the job was too small. Some of them even said they just didn't want to deal with the 203K paperwork for such a low amount. The owner's own contractor even backed out.

2- My rent where I am currently living will increase significantly (by $250) in about 2 months. Just to be clear, my landlord hadn't raised the rent in 5 years. I don't see anything wrong with her increasing it now.

My point is that I found myself rationalizing buying the property because I needed to make a decision quickly even though there are water issues that came up in the inspection. Many of which the owner would not fix. I still went forward thinking the contractor(s) would stick with me.

I even told the seller that I would back out before DD expired if I can't get a contractor to fill out the bid paperwork by expiration. They sent me their guy's info. He gave me a quote and I sent him the 203K paperwork. He said he would have it by the time I needed it. He didn't.  By the time I was finally able to contact him it was pass DD period and he said he didn't want to fill out all the paperwork. Wasn't even a lot paperwork. Not only did I look at the paperwork but I offered to fill in what I could so he didn't have to. Anyway, I should have backed out when my gut told me to. There was a point where I was explaining to him that if I couldn't get the paperwork filled out that I would have to walk because I wouldn't buy the property without the repairs getting done. I didn't see anything wrong with telling him that. Do you? I thought he needed to know the severity of my situation. A day or so later, my agent contacted me and told me that the contractor talked to the seller or the seller's agent telling them he WAS NOT going to do the work. I called him and asked about it since he told me he would. He said he told them no such thing and that he didn't know what was going on.

This was the same day as dd would expire. At that point, I had even signed my termination agreement within the dd period and had my agent ready to send it by 5pm. And I should have went through with it and trusted my gut. All the signs were there but all I kept thinking about was my rent increase, how good the numbers look, and that the contractor was willing to do the work. He didn't. lol.

Is any of this their problem. Nope.

Do I expect any of my money back. Nope

I just want them to sign the papers so I can move on. This is my first shot at investing and I should have walked when my gut told me to. All I was asking BB forum for was what happens if they never sign or if they can do that. Notice I didn't ask any money back or anything.

Lessons learned.

Russell Brazil · Answer

If you are outside your due diligence period, though unlikely they can sue for specific performance. You might also want to check if their is a binding mediation clause in the contract. If there is, then you could be bound to the decision of a mediator who might say you need to perform or who will fine you.