Help me save this deal! Seller making outlandish demands

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Help me save this deal! Seller making outlandish demands

Adrianne G.
PNW · Member since 2016 · 21 posts · 3 votes

Agents, experienced folks & Psych majors, help me out! Looking for ideas! Oregon.

We are under contract. Our current closing date is in 8 days. The seller has been extremely difficult to communicate with (according to their agent). We have offered to extend closing & release a portion of the earnest money to make the agreed upon repairs since that was a request of the seller previously.

We originally wrote a contingency to allow us to go through initial steps to obtain a short term rental permit in Bend, OR. The seller agreed originally but has become unresponsive/uncooperative. We have allowed that contingency to expire, and are progressing as was originally agreed to in the purchase contract. However the agent cannot confirm with their seller how they want to proceed.

Latest communication from seller (via email to agent; fwd’d to us):

FWD:

Ok...here is what I have come up with.

I will extend for the 14 days they need for the sign to be posted.

*I would like the Ernest money handed over to me non-refundable.

*they will need to pay my February house payment non refundable and not taken off the price of the house.

*at the date of the approval or signing, I will have 45 days to be out of the house.

*if the sale doesn’t go through they do not get Ernest money back.

If this keeps extending and more time is needed they will need to continue to pay the house payment.

I am not going to accept a counter to this. I understand that they are going through a process right now however I am losing money and time on getting things done and re-listing in the event that this doesn’t go through as well as not being able to 1. Put a down payment on anything or 2. Find somewhere to rent.

Let me know if you have any questions.

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Bill B.
Investor · Las Vegas, NV · Member since 2013 · 8k+ posts · 10k+ votes
5y

The only one I would object to is the 45 day use fo the property. What’s the plan if the seller won’t move after 45 days? They also should be paying rent for those 45 days, probably more than the payment. I assume this is an investment only property (so you won’t have to swear to the lender you will live there within 60 days.)

Personally I would just ignore all these addendums and go with the original deal. You have to get the rental permit while you own it, they have to be out 45 days sooner and miss out in-house payments being made for them. 

I don’t see any deal killers. They’ve already agreed to the original deal, there’s no additional step to keep the deal you already had. Every time someone counters they kill the previous counter.  So neither you or the seller is required to perform your addendum, but assuming you don’t sign this addendum you aren’t required to submit to it either. 

Just tell seller’s agent you don’t agree to this addendum and are proceeding with the agreed upon deal and the seller should be out by the original closing date. Take the 15 day permit time to take good pictures after you clean the property. You could check with the city and see if you are allowed to advertise pre-approval if you note in the advertisement “pending rental permit approval.”

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  • Bill B.
    Investor · Las Vegas, NV · Member since 2013 · 8k+ posts · 10k+ votes
    5y

    The only one I would object to is the 45 day use fo the property. What’s the plan if the seller won’t move after 45 days? They also should be paying rent for those 45 days, probably more than the payment. I assume this is an investment only property (so you won’t have to swear to the lender you will live there within 60 days.)

    Personally I would just ignore all these addendums and go with the original deal. You have to get the rental permit while you own it, they have to be out 45 days sooner and miss out in-house payments being made for them. 

    I don’t see any deal killers. They’ve already agreed to the original deal, there’s no additional step to keep the deal you already had. Every time someone counters they kill the previous counter.  So neither you or the seller is required to perform your addendum, but assuming you don’t sign this addendum you aren’t required to submit to it either. 

    Just tell seller’s agent you don’t agree to this addendum and are proceeding with the agreed upon deal and the seller should be out by the original closing date. Take the 15 day permit time to take good pictures after you clean the property. You could check with the city and see if you are allowed to advertise pre-approval if you note in the advertisement “pending rental permit approval.”

    2Reply
  • Adrianne G.
    OP
    PNW · Member since 2016 · 21 posts · 3 votes
    5y

    @Bill Brandt Thanks very much! For all readers, we do plan to stick with the original agreement, however, would be flexible time wise to meeting the seller somewhere in the middle. However, they are not communicating with their agent whatsoever. We aren’t willing to give the seller free housing, but also want the transaction to go positively and don’t want to have to evict or gain possession of a destroyed property upon closing. Any nuances here? Thanks!!

    0Reply
  • Cole Simpson
    Rental Property Investor · Columbia, SC · Member since 2020 · 302 posts · 186 votes
    5y

    Obviously this is the last option but if you have a signed agreement they're are situations where you can sue for "specific performance".  Basically force them to do what they said they would do.

    1Reply
  • Lynnette E.
    Rental Property Investor · TN · Member since 2018 · 2k+ posts · 2k+ votes
    5y

    From what the seller wrote, it appears that the seller thinks you will not be completing the sale and have buyer's remorse.  Seems the seller just wants you to have more meat in the game, more commitment to actually close.  And because the closing date has been unsure, he does not want to make commitments to leave since then he will have the cost for 2 properties.

    Just eat the 2 weeks of time needed to get the permit, and close on the original terms and then you can fix what you want with him gone.

    2Reply
  • Steve K.
    Realtor · Boulder, CO · Member since 2016 · 3k+ posts · 5k+ votes
    5y
    Originally posted by @Adrianne G.:

    Agents, experienced folks & Psych majors, help me out! Looking for ideas! Oregon.

    We are under contract. Our current closing date is in 8 days. The seller has been extremely difficult to communicate with (according to their agent). We have offered to extend closing & release a portion of the earnest money to make the agreed upon repairs since that was a request of the seller previously.

    We originally wrote a contingency to allow us to go through initial steps to obtain a short term rental permit in Bend, OR. The seller agreed originally but has become unresponsive/uncooperative. We have allowed that contingency to expire, and are progressing as was originally agreed to in the purchase contract. However the agent cannot confirm with their seller how they want to proceed.

    Latest communication from seller (via email to agent; fwd’d to us):

    FWD:

    Ok...here is what I have come up with.

    I will extend for the 14 days they need for the sign to be posted.

    *I would like the Ernest money handed over to me non-refundable.

    *they will need to pay my February house payment non refundable and not taken off the price of the house.

    *at the date of the approval or signing, I will have 45 days to be out of the house.

    *if the sale doesn’t go through they do not get Ernest money back.

    If this keeps extending and more time is needed they will need to continue to pay the house payment.

    I am not going to accept a counter to this. I understand that they are going through a process right now however I am losing money and time on getting things done and re-listing in the event that this doesn’t go through as well as not being able to 1. Put a down payment on anything or 2. Find somewhere to rent.

    Let me know if you have any questions.

    Who is Ernest and why is his money involved? Lol. 

    I would recommend closing on the contract date. The rental license contingency isn't in play anymore since you're past the date, and it's a strong seller's market so you don't have much leverage here. Seller knows they could just as easily sell to someone else who wouldn't have that hangup. It sounds like the Seller has negotiation fatigue honestly and just wants to close and move on at this point, so they're playing hard ball a bit to get you to the closing table. I'm surprised they agreed to the STR license contingency to begin with.

    1Reply
  • Adrianne G.
    OP
    PNW · Member since 2016 · 21 posts · 3 votes
    5y

    @Steve K. Thanks,Steve. Good insight.

    1Reply
  • Steve Morris
    Real Estate Broker · Portland, OR · Member since 2019 · 4k+ posts · 2k+ votes
    5y

    Well, how much leverage do you have.  It's Bend and I don't even understand why prices are so high there based on incomes.

    However:

    1) If you make E/M non-refundable, make sure there is some clause to the effect of "barring seller default".  You don't want the guy waking and saying f-you, give me the money.

    2) On the 45 days, I don't have an issue IF they sign a lease at a market rate so they know they are tenants and not owners.  RMLS has a form for this.

    3) Paying his Feb mortgage grits my teeth, but if the market is that hot and this is that good a deal, I'd rather give him a increase on the sales price for the amount of principal so I'm not out of pocket IF there is no other way.

    0Reply
  • Adrianne G.
    OP
    PNW · Member since 2016 · 21 posts · 3 votes
    5y

    @Steve Morris thanks Steve!

    Here’s where we’re at: preparing to close on the originally agreed upon date of 2/16.

    The seller is saying they want to decide on 2/15 (a holiday) if they want to extend the closing.

    At this point we are not feeling willing to extend closing. We want to close on 2/16 and will be prepared to do so.

    However, I’m concerned that 1) the seller will not have made the agreed upon repairs

    2) the seller will not be moved out.

    Grateful for any thoughts, BP!

    0Reply
  • Steve K.
    Realtor · Boulder, CO · Member since 2016 · 3k+ posts · 5k+ votes
    5y

    1. Regarding repairs... I'd start by trying to verify whether or not the repairs were made immediately since closing is almost here. Ask for a final walk-through, bring up the repairs during that conversation and go from there. If the Seller hasn't done the repairs that they agreed to do (hopefully in writing as part of the inspection objection/resolution), the most common outcome is probably an amend/extend to give them more time to address the work. However it doesn't sound like delaying closing benefits you much in this scenario so you might consider letting the repairs go and closing as planned if the seller is being uncooperative. This is why I try to avoid having a seller make repairs if at all possible. They either cheap out and do crappy work, or just don't do it and then it get's weird trying to delay closing and get them to complete the repairs. I always ask for a credit or seller concession for the repair estimate instead, if possible. You may still be able to ask for a credit if the work hasn't been completed, but that should have been handled during inspection objection/resolution. 

    2. If the seller doesn't move out, refer to the part of the contract that deals with possession. Not sure about OR but in CO there's a box to check if there is a post-occupancy agreement and we include that agreement as part of the contract. If the box isn't checked, possession of the property must be delivered to buyer on possession date and time specified. If seller fails to deliver possession, they are subject to eviction and will be additionally liable to buyer for payment of $(fill in the blank, I usually recommend $250-500/day) until possession is delivered. If the box is checked, buyer and seller agree to execute a post-closing occupancy agreement. 

    Good luck, I'm guessing everything is going to work out just fine. 

    1Reply
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