Real estate sale cash buyer contract

[Tbonesteel01]

Jurisdiction

Connecticut

In Connecticut is it even legal for a buyer after the purchase and sale agreement is signed to a week later send the seller an addendum to try to force the seller to set aside 33k of seller proceeds for a guarantee that the seller will be out In a certain amount of time

 

[adjusterjack]

"Legal"?

Likely either a breach of contract or just plain unenforceable depending on the terms and conditions of the contract.

Something like that should have been addressed in the contract when it was first signed.

The way I have bought houses is to address it in the Close of Escrow details, stating that my final walkthrough will occur on the morning of the Close of Escrow with the home and property unoccupied, all of seller's belongings removed, and all utilities on.

If the seller doesn't comply, I don't close and the seller doesn't get any money until the seller is completely out.

Do you have some reason to suspect that the seller won't be out by Close of Escrow?

What you propose to demand isn't likely to happen if both parties are already in contract.

 

[Tbonesteel01]

I'm the seller and the buyer has not made the earnest deposit to my attorney and has given me a addendum basically saying that I need to put $30,000 of my proceeds in escrow with my attorney at closing and pay them 1500 a month for 2 months upfront at closing and to guarantee that I leave if I need to hold over to find my new home but this seems like extortion or strong arming to me not paying the earnest money and then a week later sending me an addendum that was never mentioned I told him that is ridiculous and in no way would I sign something so ridiculous

 

[adjusterjack]

if I need to hold over to find my new home

There's the problem. If you can't guarantee to be out by Close of Escrow then I can't fault the buyer for demanding a financial guarantee. Though that's not the way I would do it.

this seems like extortion or strong arming to me not paying the earnest money

It's not extortion. It's negotiating. Without earnest money I don't think there's a binding contract (ask your lawyer) so you are free to decline the buyer's demand and put your home back on the market.

Is there some reason that you can't be out by Close of Escrow?

 

[Tbonesteel01]

I understand my options what I don't Understand why they waited a week after the deal was signed before ever giving me an addendum and $30,000 of my proceeds in escrow for 2 months who would ever sign such a rediculous thing like that maybe it the way they worded it I don't really know

 

[Tbonesteel01]

There's the problem. If you can't guarantee to be out by Close of Escrow then I can't fault the buyer for demanding a financial guarantee. Though that's not the way I would do it.



It's not extortion. It's negotiating. Without earnest money I don't think there's a binding contract (ask your lawyer) so you are free to decline the buyer's demand and put your home back on the market.

Is there some reason that you can't be out by Close of Escrow?

I'm in the middle of finding a place to go now but I'm not sure yet where I'm going so as we had a talk during our conversation before the contract was signed he agreed verbally that a month or two would be ok for some rent and after everything is signed and done he purposely neglected to make the earnest deposit with my attorney then pulled out the addendum a week later it's a strong arm tactic is what it is because the way I read it I won't get any of that $30,000 back how can that be legal at all because he breached the contract by not depositing the earnest money when we signed I'm not confused believe me I'm pissed off

 

[zddoodah]

In Connecticut is it even legal for a buyer after the purchase and sale agreement is signed to a week later send the seller an addendum to try to force the seller to set aside 33k of seller proceeds for a guarantee that the seller will be out In a certain amount of time

What does "try to force" mean? The buyer is asking for something. Why would you think that might be illegal? If you're the seller and you don't want this, just say no. Since you have an attorney, you should be discussing this with him/her.

the buyer has not made the earnest deposit to my attorney and has given me a addendum basically saying that I need to put $30,000 of my proceeds in escrow with my attorney at closing and pay them 1500 a month for 2 months upfront at closing and to guarantee that I leave if I need to hold over to find my new home but this seems like extortion

It's not. If the buyer breaches the contract, your remedy is to sue for damages.

 

[Red Kayak]

what I don't Understand why they waited a week after the deal was signed before ever giving me an addendum and $30,000 of my proceeds in escrow for 2 months who would ever sign such a rediculous thing like that maybe it the way they worded it I don't really know

Maybe the buyer suddenly had the epiphany that there was nothing in writing guaranteeing that they would get to use the house any time soon.

It would be kind of redicilous [sic] to buy a property, pay a mortgage, and not be able to actually move in.

I'm in the middle of finding a place to go now but I'm not sure yet where I'm going so as we had a talk during our conversation before the contract was signed he agreed verbally that a month or two would be ok for some rent and after everything is signed and done he purposely neglected to make the earnest deposit with my attorney then pulled out the addendum a week later it's a strong arm tactic is what it is because the way I read it I won't get any of that $30,000 back how can that be legal at all because he breached the contract by not depositing the earnest money when we signed

That's your problem. The buyer is having second thoughts, that your "month or two" could extend to much longer, and wants to renegotiate.

Your choice is to negotiate or not negotiate.

Until closing, all sorts of things can happen.

 

[Red Kayak]

Is your other thread referring to the same property?

Oh, you've been busy - transfer of ownership

You have someone interested paying cash for your property. Not a mortgage. They don't want to pay cash until they're sure that they'll actually get what they are paying for.