How much disclosure is really required when a seller is asking a buyer to make a sale contingent on "The Seller's successful purchase and closing of replacement property"? I am currently in a transaction representing the buyer. At the time of the counter offer, the listing agent requested that the sale be contingent on the Seller's successful purchase of replacement property.
The buyer's accepted these terms based on the fact that the seller was already in escrow and we were given a closing date. The buyer proceeded in good faith by depositing their funds into escrow. Conducted Home Inspection and had lender complete appraisal.
A week from closing we were told by the selling agent that the seller is requesting an extension to the escrow closing date for a week. When I inquired with the selling agent why the extra time ws needed she slipped and told me that "They are waiting on the short sale approval on the second loan on the sellers purchase". My heart sank!!! I know that second lein holders and their requests from the seller's are usually the reason a short sale never closes!
My buyers and I feel Jilted! If we were told up front that the sale was contingent on the Seller purchasing a short sale, we would have not made the purchase! At the time my buyers has already sold their home. The selling agnet knew we were in escrow and needed to close on something in 30 days.
Do you think that the short sale purchase should have been disclosed?
Has anyone run into this situation?
Frustrated and Sad for My Buyers...Desperately searching for a vacant home for them to purchase.