All Forum Posts by: Joseph Parker

@Jay Hinrichs yes, first time I’ve ever used sellers agent. Knew him vaguely from school, knew he’d give me way more information about the property in order to get a deal done since he’d get both sides of commission.

I received appraisals, wvery lease detail you can imagine, was able to get inspection before ever being under contract, and this was well before I knew that the seller was his father in law.

Everything went very smoothly until Saturday when the seller received the cash offer, for cold feet about our deal and wanted me to back out. A lot of pressure put on me through text messages sent to me this weekend, asking to sign the mutual release.

My mistake on the earnest money but after his message about “no rush” and after trying Friday when they were closed, I truly thought it’d be ok to drop off today. But they took advantage of that time frame to  terminate the contract.

@Jay Hinrichs @Dan H. @Lala Weiss

I have not signed anything yet. Broker and managing broker want to meet with me tomorrow to go over everything, tell me my options (saying there aren’t many) and sign papers if necessary.

I may ask a local real estate attorney for a one hour review.

99% of communication for this deal was done through messaging, so I’ve gone back to look at certain wording. For example, below is the broker’s response when I told him I need to get him the earnest money check. Again, his response...

“Yea, I forgot to ask for it when you were here. There's no rush bc it won't be cashed actually since we're closing so quickly. It would barely clear by the time of closing.”

I took that as not too important so I’ll drop it by when I’m near his office. Tried Friday, door locked, closed for Good Friday. So I had planned to wait until Monday (today) but learned there was a dropbox around back so I stuck it in there, which means it was received sometime this morning when the office opens. Just frustrated that they’re trying to take advantage of that time frame so he can take that cash offer received while under contract.

Don’t want to look like a fool, but didn’t want to sign the release right away either.

Oh I agree - it was only 1k since we had gone back and forth so much verbally throughout the entire negotiation process (all verbal offers and counteroffers prior to settling on final purchase agreement), that seller didn't see the need for a higher amount. Prior to receiving a cash offer while under contract, of course and getting cold feet thinking about our agreement. 

@Jay Hinrichs Will keep in mind. The contract came together last minute one day when seller agreed to the lease option deal, so I did not have a check with me and broker wasn't worried about it at all. This would've have only been my second deal, so not much experience built up yet.

And to me, the $400k purchase price is not a tiny amount of money, and neither is the $72k down payment. That's why I'm on here trying to gain as much knowledge as possible for future deals that might come my way.

@Jay Hinrichs that's why my assumption is that this is a valuable lesson learned. I don't believe Good Friday is technically considered a non-working day, or holiday, in Indiana. Their office just happens to be closed that day, however, companies like the one I work for were open.

@Tom Burns@Mike Dymski @Matt Lefebvre 

UPDATE: may have learned a valuable lesson, but not experienced enough to know!

Question - is the earnest money time frame specified within a purchase agreement based on "business" days, or just general days?

Contract signed and dated Wednesday, March 28th, 4:00pm

Specifies 2 days to submit earnest money, and broker told me"no rush at all" with that since it is a seller financing deal, we'll be closing quickly so it won't be cashed until close to closing date and that we've all had good communication with each other during the process.

I was out of town Thursday. Went to agency on Friday to give check to broker, realized it was Good Friday and they were closed. Left in dropbox over the weekend and was picked up this morning when their office opened. Is that 2 day time frame referring to actual days, or "business" days? I had always assumed business days so was in no rush. It was only $1,000 on a $400,000 deal.

Obviously, as stated earlier, the broker and seller have been trying to get me to agree to a mutual release of the contract since Saturday afternoon so that the seller can take the cash offer he received Friday while under contract with me.

Received email around noon today stating "Unfortunately my seller has decided to terminate this agreement based on the fact that the Earnest Money was not delivered in the time frame that is allotted within the Purchase Agreement. I am terribly sorry that we have worked so long and hard to make this come together and in the end, it is not going to happen. If you take a look at Section D of the contract is stats "If the buyer fails for any reason to timely submit Earnest Money, Seller may terminate this agreement upon notice to Buyer." It is the decision of my seller at this time to terminate. Attached is the documentation for that."

The dates and signature times within that document are incorrect (future signature date after 5pm today?), but that's not important I guess.

Was emailed the Mutual Release agreement shortly afterward, again showing an electronic signature time of after 5pm, which might just be a computer error on their part but still strange.

I haven't signed anything yet.

Could someone PLEASE just let me know if I learned a valuable lesson here? Or are they being creative by using this to get out of the deal in order for the seller to accept the cash offer he received Friday??

@Tom Burns this deal is $400k purchase price, $72k down, $1800/mo payment for 10 years and balloon of $180k due at year 10.

I’ll keep the early termination fee in mind, definitely not one to go the legal route as frustrating as things can get. Wish I knew what his latest cash offer was.

Seller is broker’s father in law. 

@David Ledbetter I would agree that the area is growing in terms of new construction of both homes and apartment buildings (high end, low end and senior living), but a lot of us are skeptical as to who exactly will move in to and fill the newer high end apartments being built. Kokomo is a blue collar town and some of these new apartments are planning to be rented at $1000-$1400/mo. Here, that rent could easily be a mortgage on a 3500 square foot brick home on one acre, no questions asked. Also, jobs aren’t being added at the rate that would justify this new housing. So the jury is still out on that.

Your friend with properties in Kokomo wouldn’t happen to be a fellow ball player, would he? If so, I know him pretty well.

Thanks Mike, I don’t want to drag this on for both my own sake and that of the seller’s, but i do realize the ball is in my court and I need to make the best decision for me. I just haven’t found the clear answer that I was hoping for! Ha

Think Indy is cheap? Drive about 45 miles north and check out some prices here in Kokomo!!