Is It a Contract?

By
Real Estate Broker/Owner with Liz Loadholt- AgentOwned Realty- Covering SC


The AgentOwned Realty Company - short sale* There is a ratified contract on a "short sale" dated 9/9/2009.  This is a new construction home.

*  Seller's lender approved the short sale contract 9/29/09.

*  Closing date was Oct. 22, 2009 with a 10 consecutive days extension clause.
The AgentOwned Realty Company - home inspector

*  Contract called for home inspection by Oct. 8, 2009.


*  Inspection could not be done because the house was not finished.

*  Buyer obtaining an FHA loan & FHA final inspection could not be done on time because house was not finished.

The AgentOwned Realty Company - unfinished house*  The closing date was not met because the house was not finished.

*  Buyer did not like the "cheap" appliances provided by the builder, so she chose to put her own appliances in the house ---they were put in before the HUD inspection.

*  Buyer had paid for the appliances -- dishwasher, micro-wave, stove, and refrigerator and they were placed in the house.

*  The builder was taking so long to get everything done that the buyer decided that she didn't want the house anymore.

*  On  Nov 9, 2009, even though the contract closing date had passed, she still sent a release of contract.
The AgentOwned Realty Company - builder

*  This release was responded to by a letter from the builder
threatening to sue the buyer.

*  After much discussion with agent and Broker, buyer decided to go ahead with the closing because builder said it could close on Monday, Nov. 16, 2009.

*  On Saturday, Nov. 14, 2009,
buyer's agent went to the home
The AgentOwned Realty Company - police car

 

to meet a home inspector -- the HUD inspection had been completed on Thursday, Nov. 12, 2009 -- when the buyer's agent showed up, there were policemen everywhere and the builder was there.  The home had been robbed of all the appliances.

*  Remember who the appliances belong to?  Yes, the buyer.

*  Now, the buyer is freaking out and is refusing to close.

*  No addendum was ever done to extend the closing date.

Does the buyer have a contract or not?  What do you say?

Mama Liz's Signature

 

Liz Loadholt
Broker, SC Certified Trainer, Relocation Director
Co-founder of AgentOwned Realty
Liz@AgentOwned.com
843-725-5007

Twitter Button from twitbuttons.com


The AgentOwned Realty serves your real estate needs for:

Charleston, Johns Island, James Island, Mt. Pleasant,
Isle of Palms, Sullivan's Island, Daniel Island, North Charleston,
Summerville,Goose Creek, Moncks Corner, Santee, Manning, Sumter, Florence, & Myrtle Beach, all in South Carolina


Search Charleston Tri-County Search Santee, Manning & Sumter search Florence About us

 

young at heart logo AgentOwned logo support our troop friday logo

 

Copyright © 2009 By Liz Loadholt, All Rights Reserved. This post may be re-blogged only with a link back to this post.*Is It A Contract?*

close

This entry hasn't been re-blogged:

Re-Blogged By Re-Blogged At
Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the lock to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase:

Topic:
Real Estate Best Practices
Location:
South Carolina
Groups:
AgentOwned Realty
Coaching and Mentoring
Running a Brokerage
South Carolina Real Estate
Young at Heart
Tags:
contract of sale
short sale contract
the agentowned realty
the agentowned realty company
agentowned reality

Comments 26 New Comment

Anonymous
Post a Comment
Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the airplane to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase:

Show All Comments
Ambassador
2,032,210
Todd Clark
Broker - Beaverton, Oregon Real Estate Expert - (503) 524-9494
Keller Williams Realty

The contract expired on the original date of scheduled closing, if there was no addendum to extend the closing date, there is no contract! (Sorry builder)

 Todd Clark - www.LivingBeaverton.com

November 17, 2009 03:46 PM
Rainmaker
172,762
Michael Johnson
Metro Charleston SC
Carolina One Real Estate

Contract expired with no extension, thus there is no longer a contract.  When he threatened to sue I would have laughed and called my attorney.  I would also contend that the builder may be liable for the contents of the home to include the appliances that were stolen. 

November 18, 2009 05:04 PM
Rainmaker
172,762
Michael Johnson
Metro Charleston SC
Carolina One Real Estate

Liz, was there any sort of clause in the builder's contract that stated that only a certain percentage had to be completed in order for both parties to proceed to closing.  I've seen that in a few new construction contracts.

November 18, 2009 05:06 PM
Rainmaker
437,217
JL Boney, III
Columbia, SC Real Estate
Russell and Jeffcoat

I would guess that without a written extension of the contract then it was toast after the closing was not met and the ten consecutive day extension ended. I hate to try and figure out a situation that I am not involved in first hand though.

November 18, 2009 07:16 PM
Rainmaker
313,115
Liz Loadholt
Realtor--Broker-in-charge - Trainer--Relocation Director Covering SC
Liz Loadholt- AgentOwned Realty- Covering SC

Donna --- I agree with you --- this is a small builder and the SC state contract was used.

                                                                               

November 19, 2009 09:11 AM
Rainmaker
313,115
Liz Loadholt
Realtor--Broker-in-charge - Trainer--Relocation Director Covering SC
Liz Loadholt- AgentOwned Realty- Covering SC

Dorie --- interesting --- I'm really wondering that myself --- the potential buyer's insurance has not started and I doubt that the seller has any.

                                                                               

November 19, 2009 09:12 AM
Rainmaker
313,115
Liz Loadholt
Realtor--Broker-in-charge - Trainer--Relocation Director Covering SC
Liz Loadholt- AgentOwned Realty- Covering SC

Kevin --- thanks for stopping by anyway.

                                                                               

November 19, 2009 09:13 AM
Rainmaker
313,115
Liz Loadholt
Realtor--Broker-in-charge - Trainer--Relocation Director Covering SC
Liz Loadholt- AgentOwned Realty- Covering SC

Ted --- thanks for stopping by ---I say that there is no contract, but the seller is arguing that there is.

                                                                               

November 19, 2009 09:14 AM
Rainer
320,761
Chip Jefferson
Gibbs Realty and Auction Company

No extension no contract. But the buyer is out of the appliances with no recourse. Why would a buyer put in appliance before the closing is beyond me. I would never let that happen.

November 19, 2009 09:45 AM
Rainmaker
313,115
Liz Loadholt
Realtor--Broker-in-charge - Trainer--Relocation Director Covering SC
Liz Loadholt- AgentOwned Realty- Covering SC

Kathryn ----  a buyer must have the FHA inspection, however they can wave their personal inspection.

                                                                               

November 19, 2009 10:26 AM
Rainmaker
313,115
Liz Loadholt
Realtor--Broker-in-charge - Trainer--Relocation Director Covering SC
Liz Loadholt- AgentOwned Realty- Covering SC

Irene ---- I say there is no contract, but the seller is arguing that there is.

                                                                               

November 19, 2009 10:27 AM
Rainmaker
313,115
Liz Loadholt
Realtor--Broker-in-charge - Trainer--Relocation Director Covering SC
Liz Loadholt- AgentOwned Realty- Covering SC

Todd ---- I agree with you, but the seller is arguing that there is  ---to be continued.

                                                                               

November 19, 2009 10:27 AM
Rainmaker
313,115
Liz Loadholt
Realtor--Broker-in-charge - Trainer--Relocation Director Covering SC
Liz Loadholt- AgentOwned Realty- Covering SC

Michael ---- Thanks for stopping by ---  I say that there is no contract, but the builder is arguing differently. I hope you are right about the appliances.

                                                                               

November 19, 2009 10:30 AM
Rainmaker
313,115
Liz Loadholt
Realtor--Broker-in-charge - Trainer--Relocation Director Covering SC
Liz Loadholt- AgentOwned Realty- Covering SC

Michael ----  No, there not such a clause --- there was the normal state contract used with a short sale addendum which was satisfied.

                                                                               

November 19, 2009 10:31 AM
Rainmaker
313,115
Liz Loadholt
Realtor--Broker-in-charge - Trainer--Relocation Director Covering SC
Liz Loadholt- AgentOwned Realty- Covering SC

 JL ---- I understand ----I say that there is no contract, but the builder is arguing that there is --- to be continued.

                                                                               

November 19, 2009 10:32 AM
Rainmaker
313,115
Liz Loadholt
Realtor--Broker-in-charge - Trainer--Relocation Director Covering SC
Liz Loadholt- AgentOwned Realty- Covering SC

Laura ---- I agree with you about the appliances --- I say there is no contract and the buyer is out of the money for the appliances, probably --- the builder is arguing that there is a contract.

                                                                               

November 19, 2009 10:35 AM
Rainer
20,656
Lisa Thompson
AgentOwned Realty

I would have to say there is no contract.  And, the buyers putting in appliances before closing- NO NO NO

November 19, 2009 03:13 PM
Rainmaker
313,115
Liz Loadholt
Realtor--Broker-in-charge - Trainer--Relocation Director Covering SC
Liz Loadholt- AgentOwned Realty- Covering SC

Lisa ---- you and I are on the same page with this.  the saga continues.
  
      
   
                                                                   

November 20, 2009 11:20 AM
Anonymous #25
Anonymous
Anonymous

Sounds like everyone here made a few mistakes.  Is there a contract?  No.  Is there an insurance claim?  Yes.  Is it the property owners responsibility to preserve and protect the property pending closing?  Yes.  I'm more interested to see how long it takes for both insurance companies to deny the claim and point fingers.

November 21, 2009 06:01 AM
Rainmaker
477,913
Robert L. Brown
Grand Rapids Real Estate Bellabay Realty, West Michigan
www.mrbrownsellsgr.com

My answer is the deal is dead. And possibly the buyer is out their money for the appliances.

November 29, 2009 02:03 PM
Anonymous
Post a Comment
Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the clock to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase:

Show All Comments
Rainmaker
313,115

Liz Loadholt

Realtor--Broker-in-charge - Trainer--Relocation Director Covering SC
Ask me a question
*
*
*
Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the cat to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase:

Additional Information