Help! Renegotiating Purchase Agreement...proper way???

Help! Renegotiating Purchase Agreement...proper way???

Investor · Fayetteville, NC · Member since 2017 · 38 posts · 5 votes

So I have a property under contract. Inspection report (and walkthrough of all units) led to discovery of some serious items that need to be addressed. Seller's agent is expecting to renegotiate, but what is the proper way to do this? Is this a simple email of a new price with an explanation as to why the new number? Or do I this through some more official way (like the LOI or PA, etc)?

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  • Rental Property Investor · Brooklyn, NY · Member since 2014 · 722 posts · 1k+ votes
    9y

    @Ryan Franklin Speak with your property lawyer, but you are probably going to do this in an amendment to the purchase agreement.  The agreement likely says that all modifications must be in writing, and in any event, oral contracts for the sale of property are generally invalid.  So my expectations is that you will do this through an amendment to the agreement that sets out the new price and terms, if any.

    Your explanation as to why will probably set out in a cover letter or cover email, but you will probably discuss this with the broker first before sending anything to the seller.

  • Investor · Fayetteville, NC · Member since 2017 · 38 posts · 5 votes
    9y

    Great...thanks for the answer @Jonathan Twombly!

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