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Seller walked away from closing

16,652 Views | 79 Replies | Last: 11 yr ago by bearmw
jopatura
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We just had our seller walk away from the closing table, on the date on closing, because they decided they didn't want to pay closing costs. We have several signed contracts that they have previously agreed to, including our original offer and their counter.

Does anyone know a lawyer in Austin that would specialize in these type of cases?

My email is texas dean family @ gmail .com with no spaces.

Thanks in advance.
bearmw
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What a nightmare! Sue sue sue their a$$e$$. I am closing on a rental tomorrow that the sellers have to pay to sell...i have this nagging feeling there will be some "excuse" as to why they can't close.

Reading this does not make me feel any better...
jopatura
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I will definitely be crossing my fingers for you. This isn't a situation we had even prepared for since the sellers had been fairly amenable to this point. We were naive in thinking everything would go smoothly.
AggiePlaya
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Wow that sux. Keep us posted on how things turn out
East Dallas Ag
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Curious, were there agents involved?
plowboy1065
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Do you not have a Buyers Agent?
chjoak
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Almost had a buyer walk away because of a running toilet they heard during final walk through. Realtors husband offered to replace $10 part. Buyer refused. Wanted a licensed plumber. Realtor promised to pay deductible from home warranty to send someone out after closing.
jopatura
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Yes, we have a buyer's agent. However, he is not as helpful as we would like in this situation and doesn't have any recommendations for us. He's never had this happen to him, so he's perplexed by the whole thing. (Which isn't great for our stress levels.)

We understand this is a life lesson that we are learning the hard way, but we still need any recommendations if you guys have them.
jopatura
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Also the seller had an agent who says he didn't know any of this was going down. One of the owners of the house actually flew in from out of state to come to closing, only to walk out 10 minutes later. It is not a divorce situation.
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pdawg10384
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Not a lawyer, but had a few real estate law classes. I believe the term you'll need to become familiar with is "specific performance". I think they will be required to close.

Are you in Houston? I can't speak to how good they are, but the guys that run Chicago Title in Bellaire (Houston) are real estate attorneys.
Martin Cash
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quote:
It is not a divorce situation.


Yet. . .
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HTownAg98
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^This. Courts don't like enforcing specific performance when there is easier and quicker relief: cash.
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Bitter Old Man
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Your agent, and the broker he works for should be able to figure this out for you. If not, email me at atxbanker at gmail dot com and I will give you some attorney names.
Column
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Texas courts wont order SP even for home sales? Why is that?
CS78
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I would just move along. Its my understanding that specific performance suites are pretty rare in residential real estate. You could also be looking at over 6 months to get it resolved.
HTownAg98
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quote:
Texas courts wont order SP even for home sales? Why is that?

Because I'm going to assume either the contract has some kind of liquidated damages clause, or it is easier to make the party that breaches the contract to make the other party whole by giving them money.
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Bitter Old Man
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If you used the standard contract, it says this:

quote:
15. DEFAULT: If Buyer fails to comply with this contract, Buyer will be in default, and Seller may
(a) enforce specific performance, seek such other relief as may be provided by law, or both,
or (b) terminate this contract and receive the earnest money as liquidated damages, thereby
releasing both parties from this contract. If Seller fails to comply with this contract, Seller will
be in default and Buyer may (a) enforce specific performance, seek such other relief as may
be provided by law, or both, or (b) terminate this contract and receive the earnest money,
thereby releasing both parties from this contract.
16. MEDIATION: It is the policy of the State of Texas to encourage resolution of disputes
through alternative dispute resolution procedures such as mediation. Any dispute between
Seller and Buyer related to this contract which is not resolved through informal discussion
��will ��will not be submitted to a mutually acceptable mediation service or provider. The
parties to the mediation shall bear the mediation costs equally. This paragraph does not
preclude a party from seeking equitable relief from a court of competent jurisdiction.


Depending on what you checked in section 16, you may be required to go to arbitration.
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jopatura
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I'll tell the full story once everything is over, but the seller's agent is pissed and is offering his commission to get the sale done but that only covers half the costs. We are waiting word from the seller if this is enough to continue closing.

Our agent is going on a cruise for the next week and is leaving us to deal with the seller's agents. We will never use our buyer's agent again.
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jopatura
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Our agent is not currently offering his commission. I secretly think he's more upset that he doesn't have the money wired to him before he leaves on his trip then he is over the fact that we are getting screwed.
bearmw
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Man what a crazy situation. Hopefully it will all work out.

Why would anyone expect the buyers agent to forgo commission? How could he prevent these crazy-ass people from pulling this crap at closing?

Our deal went through today, so hopefully this will be a good omen for yours to reach a positive conclusion.

I wish we were privy to the rest of the story. Hopefully you can close soon and share it all. Good luck to you.
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Diggity
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I love it.

there seems to be no situation on the real estate board that can't be solved by the agents giving up their commissions.

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jopatura
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Well, we never asked the seller's agent to give up his commission. We won't ask our agent to give up his commission, however we will let him know that if we lose the house that we do not plan on using his services again. He can decide whether it's in his best interest to make nothing or make a little.
TXAGFAN
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quote:
Our agent is not currently offering his commission. I secretly think he's more upset that he doesn't have the money wired to him before he leaves on his trip then he is over the fact that we are getting screwed.
If you want to help others you really need to post this guys name when this is done...is he someone who posts on here?

[This message has been edited by Txagfan (edited 11/22/2013 9:23p).]
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unmade bed
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In the right circumstances you could probably get SP, but courts are reluctant to order the sale of someone's house. There is a variety or reasons for this. If financial damages can make the person whole that is the legally preferred award. Because of the strong homestead laws in Texas and the negative connotations on the campaign trail, an elected judge in Texas will look for other remedies even if SP would be appropriate.

Also, since for the most part a residence is not "unique", actual damages should be sufficient to make the person whole. That is why you are more likely to see SP in a commercial property case. If there is only one unoccupied corner at a busy intersection, there is not another property available that will have those same characteristics.

Thinking you could get SP in 6 months is also pretty far off. My guess is even with a commercial property in a similar situation, you could easily be talking 2+ years before the property is conveyed. Not saying 6 months is totally impossible, but I would tell a client to prepare for a much much longer time frame.


Yeah, 6 months is way too optimistic. Our title company was closing a deal back in 2009 where Seller tried to back out the week of closing (I think they got a better offer).

Seller didn't show up at closing. After a few months of demands back and forth from various attorneys, Buyer finally filed suit and we turned the earnest money over to the registry of the court. Every 3 or 4 months since then we get notice of some new filing in the matter. Both sides have filed for summary judgment and lost, they've gone to mediation twice, there have been countersuits and cross suits (the seller's agent got brought in for tortious interference with contract). Huge cluster-ef. Finally it was set for jury trial on November 12 of this year. I showed up at the courthouse just becuase I was interested in it and sure enough it got postponed again because of an issue with the original plaintiff's witness list and not disclosing an appraiser or something.

Our's wasn't purely residential, it was ~20 acres and a house, but I can't imagine either party is happy about the way this has gone down. I'm sure both are so invested in the lawsuit now that they are playing it out to the bitter end, but I bet if either had it to do over again the Seller would have just sucked it up and closed and if not the Buyer would have just sucked it up and found another property.
bearmw
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quote:
If he isn't doing his job why should he be entitled to any commission? Sounds like he is abandoning his client.


What do you want him to do? Break someones leg? Cancel his vacation? Front a retainer for a lawyer?...and forgo his commission?

Sometimes things happen that are out of anyone's control.
Garrelli 5000
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At this point I'd be terrified that the seller will trash the house.
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