Backing out of deal delayed in probate court

[Jon Haney]

Hi everyone,

This March I signed a purchase agreement on an investment property in Detroit, but unfortunately the property got stuck in probate court and still has yet to finalize. The original closing date was supposed to be April 14, though of course we are well past that now.

I've read back over the purchase agreement, and while there's nothing specific about delays, one clause in particular makes it sound like I can legally back out of the agreement: 

CLOSING: Subject to all conditions herein, closing shall take place on or before April 14th, 2025,
at Listing Office or other mutually agreed-upon location. Seller shall pay all state and county transfer taxes and other costs required to convey clear title. Buyer shall not be deemed in default of this Agreement for any delay beyond the agreed upon closing date due to reasons associated with Truth in Lending and/or federal disclosure requirements related to Buyer’s Good Faith Estimate.

If I just need to talk with a lawyer, I can definitely do that too, but I just wanted to get a few initial thoughts before moving forward.

Thanks,

Jon

[Drew Sygit]

@Jon Haney It sounds like you didn't use any real estate agents in this, otherwise they would easily be able to advise you.

So, assuming you dealt with the seller directly, this deal is probably "dead". 

The only issue is getting a return of any EMD you might have paid. Hopefully, you did NOT pay it directly to the seller and it's being held by a title company. If so, you may need the seller to sign off on a mutual release to get your EMD back.

DM us if you have more questions.

DISCLAIMER: nothing in this post should be taken as legal advice.