I'm buying my first property. I got the property under contract. I had a 45 day contingency to secure financing. I'm in Florida and the contract was a stand FAR/BAR contract. I'm a Realtor and the seller is nonlicensed but listed the property on the MLS through a flat fee company. Shortly after going under contract my financing fell through. I told the buyer that my financing fell through, and asked if he was open to owner financing. He said no, and I told him that I would be reapplying for another loan, and even if I didn't get approved I would still close in time with a private loan.
He accepted another offer a couple of days ago, even though I told him I would still close on the property and that our contract was still valid.
Am I still able to demand that the seller perform? What happens if he doesn't? Just wondering where this will go from here.
I'll be calling my lawyer on Monday, but in the meantime I wanted to hear some opinions and get some discussion going.
You’re an agent, you should know this....read paragraphs 15 and 16 I believe it is.
BTW, it may have been a back up offer.
Did you exchange a deposit when you went under contract?
If so you have equitable title(rights to buy the building)
If you asked for mortgage extension and he denied it he could get another offer, but he would have to return your deposit first (if you gave one).
Sounds like your contract should spell this out? I'm not sure if telling him you lost your financing opens the door for him to cancel... come to think of it, has he cancelled your contract, or is he simply accepting backup offers, assuming you won't get financed?
The contract States that I have 45 days to elect in writing to either
Cancel the contract
Or waive the financing contingency and proceed as if financing were found
Still have almost 2 weeks left on the financing contingency.
I'm not familiar with Florida laws, but if your currently in escrow and have earnest money deposited the seller should be legally bound by the contract.
I'm not sure what your recourse is if there is a breach and if it's even worth pursing.
It seem like you may have scared a first time newbie seller and they didn't want to take any chances.
To your success!
It doesn't sound as if you're already set up with another mortgage. Maybe I misread?
If you have only 2 weeks left, there's a pretty good chance that you won't close in time. Depending on location appraisals alone can take a week or even more.
So, I'd be very careful about talking to lawyers, as that can backfire on you, if you don't perform in those 2 weeks. And if you're not set, then the chances are pretty good that you won't be able to close in 2 weeks.
If I was a seller and the buyer told me that his mortgage fell through 2 weeks before closing, I would definitely try to get backup contracts.
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