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Buying or Selling a Home/rescinding purchase agreement
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Question
I verbally agreed to sell my house to someone about 2 months ago. He brought over the $500 earnest money and the purchase agreement. I cashed the earnest money check, but there were some issues on the purchase agreement that we did not agree on so we did not fill anything out or sign it.
I now have a problem and need to back out of the purchase agreement and return his earnest money. Is this possible? I know that I implicitly agreed to the purchase agreement by cashing the check, however, nothing on the agreement is filled out or signed. The only parts written other than the "standard" legal framework is the purchase price and address. The section on clear title states that if Seller is unable to provide a clear title, either party may rescind the agreement by giving written notice. There is a past mortgage on the house that was paid but never cleared properly from the title and so there is not a clean title. Is this enough? Is there a part of a "typical" purchase agreement that I can look to for reason to rescind?
Thank You,
Joseph Hogue
MR. HOGUE--
The scenario you present involves one giving you an opinion and advise on a legal matter--a contract between two parties.For anyone who is NOT an Attorney before the Bar in your State OR a State licensed Real Estate Broker or Salesperson to give you legal advise and/or opinion would be considered "practicing (real estate) law without a license!" I won't do that, but I'll offer the following:
1. In some States, any contract regarding Real Estate MUST be in writing. Verbal Contracts will not stand up in Court! Find out about this issue in YOUR State!This may resolve it all!
2. Some Courts might feel that your cashing the check was an implicit
acceptance of the offer, others might not! Is there a precedence set in your jurisdiction. You need to find out! This is important!
3. Sometimes "clouds on title," like the one you've described are VERY EASILY "cleared;" sometimes they can NEVER be cleared! What's the status on the "cloud" on your Title? This, too, could resolve it all!
4. The(Unsigned) Purchase & Sales Agreement MAY very well contain language that will allow for you to pay back the Deposit and withdraw any Acceptance of the Offer--but one needs to read the Contract CAREFULLY to determine if this is so!
BOTTOM LINE? Get the help of a Lawyer and/or a Realtor in your area. Let them advise and guide you to a successful conclusion of this situation. GOOD LUCK,JOE!
--JIM ROOT
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Jim Root
Expertise
How to select the right Real Estate Salesperson & Loan Officer--ones who will serve your best interests! House-hunting tips & suggestions on selection of the home best for your family needs. Introduction to the Home Buying Process & all the "Players" involved.What is of utmost important to the Homebuyer? Real Estate Contracts & Negotiations, Appraisal needs, Title Co. involvement, Home Inspection issues& the Closing/Escrow systems, etc. Whatever your question, the answer will follow, whether from personal knowledge or research! Gale, shown here with me, has been a Real Estate Office Administrator, licensed Realtor & has served as my Research Assistant over the years!
Experience
Over 30 years as a "Real Estate Professional." including Real Estate Marketing & Sales, Appraisal work, Mortgage Banking & as a Realty Officer with U.S Dept. of HUD's FHA Homeownership Division in Alaska, Washington & Idaho! Some experience in Montana, California, Utah & Nevada markets!Knowledge of National Markets by continuous Research!
Organizations
Former member of Nat'l Ass'n of Realtors (NAR) & Mortgage Bankers Ass'n of America (MBAA). Currently with National Association of Review Appraisers & Mortgage Underwriters (NARA/MU).
Publications
Published in various local, state, regional & national Real Estate-related magazines & newsletters!Co-author of various Govt. publications on Homeownership, Appraisals & Mortgages while with HUD/FHA.
Education/Credentials
Associate Degree in Real Estate Studies plus:
Numerous Real Estate-related Courses conducted by the U. S. Government & Private Industry over the past 30 years.
Bachelors Degree in Mass Communications,
Masters Degree in Education/Teaching
Awards and Honors
Professional Designations: Certified Residential Originator (CRO) from MBAA, Registered Mortgage Underwiter (RMU) & Certified Review Appraiser (CRA) from NARA/MU. Outstanding Peformance Awards for 10 of the 12 years with HUD/FHA & numerous Sales/Listing Awards while a licensed Real Estate Agent.
Past/Present Clients
No longer selling/listing Real Estate, nor Appraising properties, nor working in the Mortgage business, this "Real Estate Pro" serves as Director of a Company that provides Professional Development Seminars & Workshops to the "Real Estate Industry" and provides free (as needed) & fee-paid (on a sliding scale) consulting & inspection services to members of the general public.Your questions will be answered without "salesmanship" & with your best interests in mind!
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