Who's responsible and legal or not

[ereavis]

Heres the deal had a contract on a home both sides accept contract. Mortgage company has air conditioner fixed and electrical work done. Less then 24 hours until closing buying clients want to back out. Well the earnest money is in question and the repair work. Who is responsible (note home was being sold as

[Wayne Griggs]

Depends on how the contract was written and what contingencies were in the contract. If they were typical then I would say the buyer just lost their EM. Typically the mortgage company will not do repairs unless they know they mortgage will fund. If you had mortgage contingencies for rate or approval and lets say the rate on the contract was 6% and the mortgage company gave the buyer 6.125% then the buyer can get out of the contract.

I see this happen a lot and its mostly because the sellers agent doesnt pay attention to the contract and the wording within the contract for contingencies...but if all contingencies were met then the buyer should lose their EM and could be sued for specific performance.

Always seek legal advise though when dealing with this type of problem from an attorney.

[Advocate]

I agree with Atlanta Realtor ......... that if all contingencies have been fulfilled and/or waived, the exception being a "true condition precedent" which cannot be waive by the buyer or seller, there is a binding contract. The buyers EM is subject to forfeiture and the seller can sue for specific performance and legal costs. I also would advise that both parties seek legal advise from an attorney.

[VRI]

Advocate... how about dredging up something a little closer to the surface next time? Nothing personal, it's just that the last post in this thread was in 04 so I'm hoping that it's been resolved by now.

[Advocate]

Sorry, I missed the date on that thread. Appreciate the heads-up on thread dates.