seller BACKED out.. WHAT NOW?

9 Replies

Hello BP,

Ok, so I signed a contract with the seller in hopes of wholesaling the deal to an end buyer. The same day the contract was signed seller calls and says he wants to wait on sale. What do you do? What should I do?

Any and all feedback would be greatly appreciated! Thanks in advance..

@Reen Wade Depending on how your your agreement is worded you could make it difficult for the seller. However, it probably isn't worth the headache to force the issue. I'd allow him to terminate and move on to the next deal. 

@Reen Wade

Are you saying you have an executed contract with you and the seller? 

If that is the case the seller has no leverage. If they signed it and you signed it then you have the leverage as the buyer. Only way they can back out is if you allow it and rip it up. @Ryan Craig is right though, if it is only day 1 and the seller is acting this way you might want to just rip it up and move on. 

Damn, just goes to show nothing is set in stone until the check is deposited on the day of closing. I've sort of had this happen to me before...not exactly as inconvenient as your situation but at the end of the day I had to let the deal go. I was not about to get into a battle with this seller...wouldn't be worth my time or energy (plus he was freakin huge).  

Just my thoughts, your situation might be different. 

I agree with Ryan Craig, go on to the next deal, the seller may come back to you later when they're more comfortable and you still get the deal. You Save the relationship with the seller and you boost your reputation as an investor.

Thanks everyone. I originally told him to take a week to think about it. Like I said if this happens again I'll be backing out. I'll keep you guys posted. Thanks again.

Pennsylvania has a 72-hour "Right of Recission" (sp?) law for real estate, but I don't think Florida does.  During that time, either party can back out for no reason at all with no penalty.

If the seller hesitates again, you could force the sale with "specific performance", but that can result in risks to the property.

Maybe asking the seller for a right of first refusal would work more in your favor.  That would allow you to take the high road and let the seller off the hook at seemingly no cost.  In reality, you have locked up the property for whatever term you specify in the agreement.  You could specify that prospective offers are reviewed with you first to see if you want to beat them.  You would have the option, but not the obligation, to buy and could beat any other bidder because you know the competing offers.

Jim.

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