Advice on last minute amendments

4 Replies

Advice needed in Wisconsinite:

Home scheduled to close on Friday.  Well inspection done this morning, but per contract was supposed to be done 3 weeks ago, buyers responsibility.  Buyers agent now has a list of repairs and a reworking of the shared well agreement (not to mention a shared driveway agreement the bank now needs at 3:30pm).  The sellers sold home for 192,000 from a list of 204,000 and have spent about 8,000 in requested repairs from inspection.  They have no more money to pay for any more repairs.  And to top it off, the buyers changed their financing to rural development from conventional, without informing me.  

I've suggested making the repairs and raising the purchase price to cover the cost.  The sellers say they have no money to do that.  I've already cut my commission.  Could the sellers force the buyers to get conventional financing?  Any other creative suggestions?  It's hard standing in the sellers kitchen watching one of them cry.

Thanks.

So from what you are saying the buyers have made all of these last minute changes.

Has their contingency period run out on all items??

The well issues and other things the contingency periods should be worked through well before  the closing gets near.

Did the EM go non-refundable at some point?? The EM should have been at least the amount of the sellers repairs and gone  non-refundable when the repairs were made and approved. Anytime the seller puts them self out there you need to have skin in the game from the buyer as well.

Where is your head broker in all of this?? If you are not the head broker the commission is not yours to cut. The IC agreement usually spells out that any agent reduction in commission has to be approved first by the brokerage and also that the reduction will not come off of the brokerages side.

So for instance if you were set at 3% off 100k to make 3,000 and had a 50/50 split with the company here is what would likely happen. You the agent think I am getting 3,000 minus the split so I will reduce by .50 to 2.50 commission.

You think you will get half off 2,500 or 1,250. The brokerage says not so fast. They get half based off of 3,000 figure so 1,500. You get 1,000 in that case.

Your head broker should have legal counsel on staff or contingency fee basis if they do not have an answer to this situation.

No legal advice given.

The contingency period ran out a few weeks ago.  The problem is that the changes are being required by the lender.  No repairs, no loan, so the em would probably go to the buyers.

Ugh that stinks @JOAN DICKIE . You accepted the offer based on conventional financing though right?

Originally posted by @JOAN DICKIE :

The contingency period ran out a few weeks ago.  The problem is that the changes are being required by the lender.  No repairs, no loan, so the em would probably go to the buyers.

Probably?  Exactly how are your financing contingencies worded?  There shouldn't be any doubt.  Here, the financing contingency automatically expires 7 days prior to closing.  After that point if the financing fails for Any reason, the buyer is out the EM.  Modify some agreements/easements, sure.  Perform any extra repairs, no. 

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