Seller dropping out of a deal

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Seller dropping out of a deal

Lucas VanroboysPro Member
Boston, MA · Member since 2023 · 37 posts · 21 votes

Hi everyone! 

I've got a very unique situation here and I would like to gather a few opinions on some option I have.

So to start, I went under contract on a multi-family in the Boston area late in June. The seller agreed to my offer and we both signed a "contract to purchase real estate #501". On that contract, the P&S date was listed, but we pushed that date back a few times because the seller couldn't get the proper documentation to us (leases, expenses, proof of rent, etc.). After a few back and forths, it became clear the seller is either extremely disorganized or intentionally lacking transparency. Last week, there was an affidavit issued at the registry office regarding her mortgage and now, after almost of a month of delaying P&S, the seller has said she will not move forward with P&S. Can you just do that? Do I stand on any ground here to enforce a sale? Why would someone 180 like this?

I like the deal and I've spent a lot of time, money and energy on this so don't want to just walk away empty handed to start over again, but if I have to... I guess I have to.

Does anyone have any recommendation or advice on this situation? 

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Ken M.
Investor · Get yourself trained before doing something inadvisable. · Member since 2024 · 3k+ posts · 1k+ votes
1y
Quote from @Lucas Vanroboys:

Hi everyone! 

I've got a very unique situation here and I would like to gather a few opinions on some option I have.

So to start, I went under contract on a multi-family in the Boston area late in June. The seller agreed to my offer and we both signed a "contract to purchase real estate #501". On that contract, the P&S date was listed, but we pushed that date back a few times because the seller couldn't get the proper documentation to us (leases, expenses, proof of rent, etc.). After a few back and forths, it became clear the seller is either extremely disorganized or intentionally lacking transparency. Last week, there was an affidavit issued at the registry office regarding her mortgage and now, after almost of a month of delaying P&S, the seller has said she will not move forward with P&S. Can you just do that? Do I stand on any ground here to enforce a sale? Why would someone 180 like this?

I like the deal and I've spent a lot of time, money and energy on this so don't want to just walk away empty handed to start over again, but if I have to... I guess I have to.

Does anyone have any recommendation or advice on this situation? 

Did you have a title report run and is it clean?
Has a lis pendens been filed against her or the property?
Are there real estate agents involved?

 Since it's a multi-family, is she having trouble collecting rents?

Does she have a pending legal action that will prevent closing in the time period allowed?

Did you talk her into selling in the first place or did she come to you originally?

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  • Jason Taken
    Lender · Chicago, IL · Member since 2021 · 424 posts · 145 votes
    1y

    Does the contract outline damages if either party fails to perform?

    0Reply
    • Lucas VanroboysPro Member
      OP
      Boston, MA · Member since 2023 · 37 posts · 21 votes
      1y

      @Jason Taken I don't believe so, it seems to be a pretty standard offer and purchase and sale agreement. Willing to share if you want to message privately.  

      0Reply
    • Jason Taken
      Lender · Chicago, IL · Member since 2021 · 424 posts · 145 votes
      1y
      Quote from @Lucas Vanroboys:

      @Jason Taken I don't believe so, it seems to be a pretty standard offer and purchase and sale agreement. Willing to share if you want to message privately.  


       If there are no damages outlined in the contract - then state law would likely control in the event of a breach. If you're looking to actually buy the property and force the sale - get a local attorney involved.

      1Reply
  • Ken M.
    Investor · Get yourself trained before doing something inadvisable. · Member since 2024 · 3k+ posts · 1k+ votes
    1y
    Quote from @Lucas Vanroboys:

    Hi everyone! 

    I've got a very unique situation here and I would like to gather a few opinions on some option I have.

    So to start, I went under contract on a multi-family in the Boston area late in June. The seller agreed to my offer and we both signed a "contract to purchase real estate #501". On that contract, the P&S date was listed, but we pushed that date back a few times because the seller couldn't get the proper documentation to us (leases, expenses, proof of rent, etc.). After a few back and forths, it became clear the seller is either extremely disorganized or intentionally lacking transparency. Last week, there was an affidavit issued at the registry office regarding her mortgage and now, after almost of a month of delaying P&S, the seller has said she will not move forward with P&S. Can you just do that? Do I stand on any ground here to enforce a sale? Why would someone 180 like this?

    I like the deal and I've spent a lot of time, money and energy on this so don't want to just walk away empty handed to start over again, but if I have to... I guess I have to.

    Does anyone have any recommendation or advice on this situation? 

    Did you have a title report run and is it clean?
    Has a lis pendens been filed against her or the property?
    Are there real estate agents involved?

     Since it's a multi-family, is she having trouble collecting rents?

    Does she have a pending legal action that will prevent closing in the time period allowed?

    Did you talk her into selling in the first place or did she come to you originally?

    4Reply
    • Lucas VanroboysPro Member
      OP
      Boston, MA · Member since 2023 · 37 posts · 21 votes
      1y

      @Ken M. 

      No Lis Pendens yet. How do you do that and what does that process look like and require? My suspicion is that the tenants are not paying her and she is trying to cover that up. There is actually a notice of foreclosure on her mortgage as we speak. This came up during the delays in P&S. The property was on the MLS when I found it.

      let me know if you have any more questions or some advice to my situation. 

      0Reply
    • Lucas VanroboysPro Member
      OP
      Boston, MA · Member since 2023 · 37 posts · 21 votes
      1y

      @Ken M. And yes agents on both sides. The seller and her agent do not have a great relationship as she is very difficult to work with. As you might be able to tell

      0Reply
    • Jay HinrichsBusiness Member
      Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
      1y
      Quote from @Lucas Vanroboys:

      @Ken M. 

      No Lis Pendens yet. How do you do that and what does that process look like and require? My suspicion is that the tenants are not paying her and she is trying to cover that up. There is actually a notice of foreclosure on her mortgage as we speak. This came up during the delays in P&S. The property was on the MLS when I found it.

      let me know if you have any more questions or some advice to my situation. 


      careful with Lis Pendens  lest you find yourself on the butt end of a slander of title suit
      Podcast Guest on Show #222
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      1Reply
    • Lucas VanroboysPro Member
      OP
      Boston, MA · Member since 2023 · 37 posts · 21 votes
      1y

      @Jay Hinrichs why do you say that. I'm just learning about it myself 

      1Reply
    • Jay HinrichsBusiness Member
      Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
      1y
      Quote from @Lucas Vanroboys:

      @Jay Hinrichs why do you say that. I'm just learning about it myself 


      why I say that is folks will encourage you to file a lawsuit and slander the title and seller will then counter sue you for SLANDER of title. and now you just bought yourself 10 to 20k in legal fees.. sometimes its just a pass if you have a seller balk and you chalk it up to cost of doing bizz and move on. in 50 years I have only forced the issue one time on a residential type project and one time on a TIMBER deed is was in contract to buy..  I won both.
      the residential the only reason I did it was I had given the seller 60k cash up front to pay her tax's and then she would not come to closing.. took 3 years and another 30k to win plus I had to put up the total purchase price  low 6 figures in cash and let it sit in escrow until it resolved.

      on the timber deed that one was a slam dunk and won quickly and seller kept their timber but paid me to release my rights to their timber Deed.  Timber in the North west can be some pretty serious money well into 6 and 7 figures.. its a part of real estate most are not familiar with unless your in the industry itself like I was.
      Podcast Guest on Show #222
      JLH Capital Partners51 Review
      WebsiteView Page
      1Reply
  • Lucas VanroboysPro Member
    OP
    Boston, MA · Member since 2023 · 37 posts · 21 votes
    1y

    No Lis Pendens yet. How do you do that and what does that process look like and require? My suspicion is that the tenants are not paying her and she is trying to cover that up. There is actually a notice of foreclosure on her mortgage as we speak. This came up during the delays in P&S. The property was on the MLS when I found it.

    let me know if you have any more questions or some advice to my situation. 

    0Reply
    • Ken M.
      Investor · Get yourself trained before doing something inadvisable. · Member since 2024 · 3k+ posts · 1k+ votes
      1y
      Quote from @Lucas Vanroboys:

      No Lis Pendens yet. How do you do that and what does that process look like and require? My suspicion is that the tenants are not paying her and she is trying to cover that up. There is actually a notice of foreclosure on her mortgage as we speak. This came up during the delays in P&S. The property was on the MLS when I found it.

      let me know if you have any more questions or some advice to my situation. 

      Your comment "There is actually a notice of foreclosure on her mortgage as we speak."

      I buy foreclosures and unless you know what you are doing, you are wasting a lot of time. If she has a foreclosure pending, she hasn't been getting paid by her renters or if she has been getting paid, there are other problems. She can't guarantee anything, rents, closing on time, clear title, two agents who are not talking.

      If you have cash and can close quickly, it might work, IF you can get their cooperation, which is doubtful. But you are in a very weak position. There would have to be a lot of upside to continue to put time into this.  (to me that means making $50,000 "on the buy")

      0Reply
  • Christian Maluo
    Real Estate Broker · Portland, OR · Member since 2025 · 81 posts · 43 votes
    1y

    In my state, the seller can't get out of the deal, but the deal can fall apart because you missed a deadline so remember to stay organized yourself too. Read the agreement again. Is there any language towards mediation, arbitration, disputes, etc. If you have agents involved, they probably opened escrow and a title report was pulled. Your title company can check for lis pendens and can update the title report with what they find. They will also order payoffs from her mortgagee(s).

    If she is in pre-foreclosure, usually they want to sell before they run out of time  

    1Reply
    • Lucas VanroboysPro Member
      OP
      Boston, MA · Member since 2023 · 37 posts · 21 votes
      1y

      @Christian Maluo you would think... truthfully don't know why this seller wanted out of this and was so uncooperative. I didn't miss any deadlines or breached the contract on my end but ended up signing the release yesterday and walked away. Decided I don't want the legal headache or to deal with her anymore 

      2Reply
    • Ken M.
      Investor · Get yourself trained before doing something inadvisable. · Member since 2024 · 3k+ posts · 1k+ votes
      1y
      Quote from @Lucas Vanroboys:

      @Christian Maluo you would think... truthfully don't know why this seller wanted out of this and was so uncooperative. I didn't miss any deadlines or breached the contract on my end but ended up signing the release yesterday and walked away. Decided I don't want the legal headache or to deal with her anymore 

      Smart move. You will look back and appreciate the trouble you just saved yourself. Sometimes the "win" is to walk away.
      1Reply
    • Christian Maluo
      Real Estate Broker · Portland, OR · Member since 2025 · 81 posts · 43 votes
      1y

      @Lucas Vanroboys May the next one be smoother!

      0Reply
  • Ned CareyPro Member
    Moderator
    Investor · Baltimore, MD · Member since 2008 · 17k+ posts · 13k+ votes
    1y

    @Lucas Vanroboys a LOT of questions are often addressed in the contract to buy. Generally no she cannot simply pull out of the contract, but as other have said is it worth the trouble to fight? 

    It might be worth the trouble and you may be able to negotiate a belter deal here. What does the owe on the mortgage vs the sale price. Since she is likely to lose the property anyway through foreclosure if she has equity you might be able to leverage that threat of foreclosure into a better deal. You may also be able to negotiate something with the lender. 

    My guess is this is not worth the fight but I wanted to let you know there are other possible options. 

    1Reply
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