Need quick real estate legal advice

[finchwagoniii]

Any thoughts on my options here would be appreciated, as this is likely to get resolved or explode today.

I am selling a house in Nevada. At time of listing I received multiple cash offers and most were over listing price (could be relevant). The offer I accepted was all cash and no contingencies beuond the standards...which were lifted 3 weeks ago. Buyers agent has been less than effective and has created some unnecessary stress in the deal.

So, I was supposed to close yesterday and without notice the buyers asked to move the closing date because the funds were not yet available from the sell of their commercial property which happened last Friday. They also did not release the $75k deposit which the contract called for should they not perform.

Two issues is see for them (read: their agent)
1. Breach of contract
2. They wrote a cash offer yet didn't have the cash...it was actually contingent on sell of commercial close.

Clearly, had I known it was contingent I would have taken another offer.

My question is does the buyers agent or the buyers have any liability for writing an offer that was not forthright? Do they have any liability for not release the $75k for non performance as the contract states?

I do believe the buyers are legit but the agent is not operating with integrity. There have been multiple examples of her being untruthful regarding several issues. I'd like to somewho penalize her, not necessarily the buyers.

Thoughts?

 

[Born-a-Horn]

A buyer can write an offer without a sale contingency they are just putting themselves at default risk. I don’t think you have anything there. For instance a buyer can choose to write an offer without a financing contingency even though they need financing to close. This buyer did intend to be a cash buyer. Usually at offer you will ask for proof of funds to understand where the source of the funds are coming from which presumably they would have indicated this sale.
Based on the facts you gave, you can enforce your default provisions in the contract however know that the buyer would also be digging through the contract to find anything they could to fight on that.

 

[FoggyGoggles]

Cash is at risk if the buyer did not meet the purchase agreement in full.

 

[houstonwolves]

Chill. You will know if it is a problem in a week. If you want to feel better, send them a nasty letter that their delay is a breach and they will forfeit earnest money if they don’t close

 

[Edmond Dontes]

If she works for a broker, tell the broker. I had to do that once, but it was my agent that was shitty.

You could always lodge a complaint with the NV board of realtors and they could potentially lose their license. https://red.nv.gov/Content/Compliance/File_a_Complaint/

 

[solman1972]

Are you represented? You signed the offer sheet, I assume? Fvck ‘em! Put it back on the market.

 

[Jeffreyb31]

Any thoughts on my options here would be appreciated, as this is likely to get resolved or explode today.

I am selling a house in Nevada. At time of listing I received multiple cash offers and most were over listing price (could be relevant). The offer I accepted was all cash and no contingencies beuond the standards...which were lifted 3 weeks ago. Buyers agent has been less than effective and has created some unnecessary stress in the deal.

So, I was supposed to close yesterday and without notice the buyers asked to move the closing date because the funds were not yet available from the sell of their commercial property which happened last Friday. They also did not release the $75k deposit which the contract called for should they not perform.

Two issues is see for them (read: their agent)
1. Breach of contract
2. They wrote a cash offer yet didn't have the cash...it was actually contingent on sell of commercial close.

Clearly, had I known it was contingent I would have taken another offer.

My question is does the buyers agent or the buyers have any liability for writing an offer that was not forthright? Do they have any liability for not release the $75k for non performance as the contract states?

I do believe the buyers are legit but the agent is not operating with integrity. There have been multiple examples of her being untruthful regarding several issues. I'd like to somewho penalize her, not necessarily the buyers.

Thoughts?

Did you sign a listing agreement with an Agent or were you doing a For Sale By Owner?

If the agreement was contingent on the Commercial Property selling and its in writing, I don't think you can do much. Are they backing out of the deal or just moving closing?

 

[chastok]

Did you sign a listing agreement with an Agent or were you doing a For Sale By Owner?

If the agreement was contingent on the Commercial Property selling and its in writing, I don't think you can do much. Are they backing out of the deal or just moving closing?

THEY don’t get to back out of the deal or move closing.

The seller gets to decide if they want to cancel the contract and keep their earnest money for not closing on time. The seller could also negotiate either buyer an extension.

I would certainly want some additional information on the contingent deal.

 

[finchwagoniii]

The offer was not contingent on the sell of the buyers commercial. I believe they will ultimately perform, but now there is some risk.

Do I have recourse on the buyers agent for submitting an offer that was fraudulent? Feels like she shouldn't get paid. $125k commission to the buyers agent on this deal. Seems unwarranted at this point.

 

[heinhorn]

Why was the 75k earnest money not deposited with a title company? You should be able to hold that 75k hostage and use it as leverage against the buyer to get something else out of them i.e. a higher sales price in exchange for delaying the close. If they can't close, you should be able to take the 75k and walk away free to sell to another buyer. That is the whole point of an earnest money deposit.

 

[Texas Texas]

What does your contract say on ability to delay closing? Closing sometimes slip a few days in real estate. I wouldn’t think a a couple of days would be enough to be able to blow up most real estate contracts.

Also look at the default provisions in the contract. You may need to give them a written notice of default in order to start any kind of a termination clock running. They will likely have some period of time after they get a notice of default to cure the default before you can act on your contractual remedies.

Regardless, it sound like the language in your contact will be what you need to look to, not a fraud claim.

 

[FoggyGoggles]

Why was the 75k earnest money not deposited with a title company? You should be able to hold that 75k hostage and use it as leverage against the buyer to get something else out of them i.e. a higher sales price in exchange for delaying the close. If they can't close, you should be able to take the 75k and walk away free to sell to another buyer. That is the whole point of an earnest money deposit.

This is my assertion as well.

 

[UT Big Daddy]

The offer was not contingent on the sell of the buyers commercial. I believe they will ultimately perform, but now there is some risk.

Do I have recourse on the buyers agent for submitting an offer that was fraudulent? Feels like she shouldn't get paid. $125k commission to the buyers agent on this deal. Seems unwarranted at this point.

This is a $4MM house? I presume you have a rock solid seller's agent? This kind of scenario is precisely why you don't want to skimp on a good seller's agent.

I'd demand $50K for a one week extension or drop the buyer and keep the earnest money.

Edit: I just saw the note about the $75K. That money should be hard if you are out of the option period. Sounds like your agent might have dropped the ball. Damn. I'd drop this buyer and move on. They are in breach and you are going to piss away money pursuing a remedy.

 

[losthorn]

Read what you signed. Going after the realtor is likely more trouble than it's worth. If you have a right to cancel the contract, do so. If they still want to buy it, sign a new contract with buyer paying all realtor fees.

 

[Ferda]

Making a cash offer without having the cash until some later time is not necessarily fraudulent, unless the agent gave you some kind of assurance that the cash was in hand. If you didn’t ask for proof of funds, it’d probably be a waste of time to try to prove fraud.

 

[Danny_A123]

Have them add another $75k in earnest money to grant them their extension. If they don't agree then server the contract and put it back on the market. Hidden contengency buyers are a pain in the ass.

Also have your attorney look over the contract prior accepting any extensions. Make sure they forfeit 100% of their earnest money if the deal falls thru.

 

[Jeffreyb31]

Still haven't seen an answer to the question about a listing agreement. Was this a For Sale By Owner or do you have a Listing Agent?

 

[Jeffreyb31]

The offer was not contingent on the sell of the buyers commercial. I believe they will ultimately perform, but now there is some risk.

Do I have recourse on the buyers agent for submitting an offer that was fraudulent? Feels like she shouldn't get paid. $125k commission to the buyers agent on this deal. Seems unwarranted at this point.

She has a Buyers Rep Agreement so she is getting paid. It may just not be by you.

 

[TexasGrad83]

My question is does the buyers agent or the buyers have any liability for writing an offer that was not forthright? Do they have any liability for not release the $75k for non performance as the contract states?

I do believe the buyers are legit but the agent is not operating with integrity. There have been multiple examples of her being untruthful regarding several issues. I'd like to somewho penalize her, not necessarily the buyers.

Thoughts?

I’d have to see a photo of said agent to offer the best advice.

 

[The Night King]

My best understanding from your OP, is that yea it sounds like they just weren’t forthcoming in that they didn’t have the cash on hand. NV is probably a little different from TX, but there’s almost no way of knowing if the buyers agent knew they didn’t have the funds.

Will probably be hard to pin the buyers agent on that one. As others have mentioned, should have had earnest money or deposit held by a title company. If you didn’t sign an amendment pushing the closing date, then y’all are out of contract.

Best course of action is either moving along to a different buyer (ask for proof of funds this time) or pushing back your closing a little bit until the funds hit.

 

[finchwagoniii]

Great stuff all, thanks for the perspective.

Final result:.
$75k released today
$75k more added to escrow with close date no later than tomorrow
Buyers agent giving up $35k of commission as a remedy to her ineptness (she may get fired, broker pissed).
My broker comes out unscathed and keeps good reputation

Wild ride here over last 36 hours, but the good guys seem to have won.

Really appreciate the long arm of OB advice and support!!!

 

[GoingInLikeRileysBrisket]

The offer was not contingent on the sell of the buyers commercial. I believe they will ultimately perform, but now there is some risk.

Do I have recourse on the buyers agent for submitting an offer that was fraudulent? Feels like she shouldn't get paid. $125k commission to the buyers agent on this deal. Seems unwarranted at this point.

$125K commission for the buyer's agent? Assuming the commission is 3%, the house you are selling is $4.167M?

 

[UT Big Daddy]

Great stuff all, thanks for the perspective.

Final result:.
$75k released today
$75k more added to escrow with close date no later than tomorrow
Buyers agent giving up $35k of commission as a remedy to her ineptness (she may get fired, broker pissed).
My broker comes out unscathed and keeps good reputation

Wild ride here over last 36 hours, but the good guys seem to have won.

Really appreciate the long arm of OB advice and support!!!

Nice work.

 

[estrempel]

Sounds like your broker didn’t do such a swell job either.

 

[satterwm]

Great stuff all, thanks for the perspective.

Final result:.
$75k released today
$75k more added to escrow with close date no later than tomorrow
Buyers agent giving up $35k of commission as a remedy to her ineptness (she may get fired, broker pissed).
My broker comes out unscathed and keeps good reputation

Wild ride here over last 36 hours, but the good guys seem to have won.

Really appreciate the long arm of OB advice and support!!!

And you thought closings in Mexico were sporty!

 

[3xHorn]

You need to get advice from a Nevada lawyer. Your questions are governed by Nevada law.

 

[finchwagoniii]

And you thought closings in Mexico were sporty!

Hahaha...buckle up bro...I'll have some margaritas waiting for you when you finish up! Sporty is the perfect adjective for a Mexican closing...good luck!!

 

[satterwm]

Hahaha...buckle up bro...I'll have some margaritas waiting for you when you finish up! Sporty is the perfect adjective for a Mexican closing...good luck!!

Offers accepted!

The good luck and the margaritas.