Updated over 1 year ago on . Most recent reply
Can we walk away?
Hello everyone,
We need help ASAP! Wife and I are supposed to be closing on a house 6/4 here in Frisco TX. We are the buyers and it is being sold by a relocation company. We just got offered a dream job that would move us out of state. We are passed all contingency periods and are ok with losing the earnest deposit and moving on. Our realtor and the selling realtor are both saying we can’t walk away and that the relocation company is going to sue us because we are completely approved and docs are with title. We haven’t signed any final docs yet, that is scheduled for Tuesday. Can we walk away or do they really have legal action that can be taken against us? If we can walk away, what are the necessary steps for us that are to make sure we are covered from a legal/compliance standpoint?
Thank you so much to anyone that can offer advice or guidance! We really need help!
Most Popular Reply
#2 Real Estate Agent Contributor
- Real Estate Broker
- Coppell, TX
My first advice is contact a board certified real estate attorney to review your specific situation. @Ronald Rohde is local and might be a great resource for you. Don't just go to any attorney, you need one that is super familiar with TREC 1-4 contract and real estate law.
My first thought is in Frisco, when did you get the HOA resale certificate and documents? You may have the 3 day option period there if that hasn't passed yet.
My second thought is, in consultation with your agent, if you are willing to give up the earnest money, offer the inspection report, your bank appraisal, and be willing to release your earnest money. There are two forms typically to fill out. One is the contract termination one page form, and then release of earnest money. While the seller does not have to accept this, chances are they might. They typically don't want to tie up a house in litigation. Probably their contract says they could do the same to you, just returning your earnest money as liquidated damages.
Now if you were a cash buyer, that all might have different consequences.
My 3rd thought is discuss this with your new employer. See if they will help compensate you for your losses.
My 4th thought is think if the seller was trying to do this to you. Put yourself in their shoes. What if they came to you and said they've had a change of heart, don't want to move for the new job, love their house, and decided not to close 3 days before you are supposed to move in. They've just decided to stay and aren't moving out. What would it take for them to compensate you to walk away from that purchase after all the work, time, effort, finances you've put into the deal? Once you have that number, that maybe be something you want to offer them. Maybe that is more than your earnest money, but I would start with the earnest money.
Hope it all works out to your satisfaction.