Fighting: recorded contract that was cancelled prior to recorded

Fighting: recorded contract that was cancelled prior to recorded

Member since 2019 · 2 posts · 0 votes

Hello, I was under in a sales contract for my property, however the seller and buyer could not agree on all of the terms and conditions after many attempts.

There was an error in the contract for HOA Fees (98 dollars difference which was corrected); this was noticed before the buyer spent any money and no appraisal completed. The buyer wanted $35K of the sales price for the life of the loan and HOA Fees. We could not agree to those conditions. I provided 3 resolutions that was reasonable and her attorney counter offered.Then I cancelled the contract on June 7 and the buyer recorded the contracted on June 11.We could not agree on the terms therefore I cancelled the contract on June 7 due to both parties failed to agree on the terms. At this point my attorney informed the other party that we have no active contract.

On June 11, the buyer recorded the contract. Weeks later, the buyer wanted to make another offer of $13K off the asking price verses 35K off the asking price, agreed to the correct HOA Fees and wanted all of the furniture in the cancelled contract.

I explained to the buyer that a new request to reactive the cancelled contact is required or a new contract has to be sent over. Both parties agreed to all of the conditions except the furniture requirements at the reduced price of 13K.

The buyer and attorney stated that we can use the old contract since we are still under it. My attorney stated again our position and the previous contract was cancelled.

How do I approached the recorded contract on my title and the buyer understand there is no active contract? Also, how do I explain to the buyer that a new request to reactive the cancelled contact is required or a new contract has to be sent over.

The buyer's real estate license expired, should the buyer understand what happening with the contract?

Thanks for your feedback.

Silver

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  • Kenosha, WI · Member since 2015 · 89 posts · 81 votes
    7y

    I am a little confused by the terms you are using to describe your situation.  It seems to me that by "contract" you mean "offer to purchase"  After a buyer's offer to purchase has been accepted by the seller the 2 parties enter into a "sales agreement" i.e. a contract.

    If I understand correctly the buyer submitted an offer that asked for a 35k price reduction and the reimbursement of buyer's HOA fees for the life of his loan. There was also transfer of furniture involved.

    You counter-offered with 3 different proposals which the buyer rejected.

    Where I get confused is that you say you cancelled the "contract" and then 4 days later the buyer recorded said "contract".  An offer to purchase can be declined but I would not call that a cancellation. And so far as I know an offer to purchase is never recorded (become a part of the public record).

    And if no offer was accepted by you there was no sales agreement to be cancelled or recorded.

    Since you are both working with attorneys it sounds like you are selling this house yourself and possibly plan on seller-financing.  Your attorney should be able to explain to you what is going on.

    Certainly do not listen to me.  I am neither a legal or RE professional.  Just a guy who has bought and sold a few houses.

  • Kenosha, WI · Member since 2015 · 89 posts · 81 votes
    7y

    One more thought.  You state that the buyer is a former RE licensee.  Is it possible that one of the offers that were going back and forth had some sort of "Time Is Of Essence" provision stating that unless the offer was formally rejected within a certain time limit (week, day, hour)  by a certain method (1st class mail, hand delivery, carrier pigeon) that the offer would be considered accepted?

  • Kenosha, WI · Member since 2015 · 89 posts · 81 votes
    7y

    To clarify a litte more - the Offer To Purchase becomes the Contract To Purchase when it has been approved and signed by all parties to the transaction.

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