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Buying or Selling a Home/purchase agreement cancelation

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Expert: Todd C. Menard - 5/8/2008


Question
I am a Seller of a home and my wife and I have signed a purchase agreemnt. If we have decided to get divorced, can we back out of selling the home?

Answer
Hello Jeff - No one can force you to buy anything if you do not have the  financial means. The negative side is your potential liability for damages to the builder. Sometimes it is loss of earnest deposit, sometimes civil action. Your answer will depend on your contracts wording. There are a few fundamental terms to consider - financing, cancellation, ability to perform, breach, etc. as there may be other terms in the contract that may provide you with additional rights or state additional terms that may not even pertain to your need to cancel due to divorce. This requires a knowledge of your contract which a real estate attorney should assist you with determining if the terms are not clear and the builder is stubborn or unwilling to work with you under the circumstances. If you cannot negotiate with the builder yourself I recommend seeking legal counsel. Sometimes builders know their rights and their potential outcomes of situations like these and prefer to deal with you directly... HERE ARE A COUPLE OF SUGGESTIONS... negotiate. If the builder isn't interested in forgiving you and giving your earnest money back (which is slim) then you may want to consider accepting a partial refund. The best thing to do in any negotiation is to consider what you want out of the negotiation most, then what you would settle for. And do this prior to beginning any communication with the builder. This way you are clear on your intent and in the strongest negotiating position. The builder doesn't know you have a back-up plan. And don't be too willing to move from your original position... but don't be all or nothing and don't be disrespectful. Honesty, sincerity, and humbleness have always worked for me. I am not saying I have always prevailed with my original position, but I rarely walk away with nothing. This is a tough market for everyone. You may want to think about the builders position so that you can show that you have considered being in their shoes. REMEMBER this is not to be considered legal advice but rather real estate information shared to expand the context of knowledge and the introduction of options. I hope this helps. - Todd

Buying or Selling a Home

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Todd C. Menard

Expertise

National Association of Realtors Code of Ethics and Professional Standards * Contract Questions: 05/05 Arizona Real Estate Purchase Contract, Exclusive Buyer Broker Contracts, Listing Contracts and associated contract documentation as it relates to boilerplate, covenants, contingencies, procedures and procedures. * ARMLS Arizona Regional Multiple Listing questions * Real Estate Professional Standards and Practices, Ethics, Obligations, Duties * Agency relationships in Arizona, Procurring Cause * Questions typicaly arising during the listing period * Questions typically arising during the escrow period * Questions about working with a real estate agent/REALTOR * Questions Related to New Home Builders

Experience

National Association of REALTORS Board of Director (2011) Arizona Real Estate Salesperson License (1991-1995), Arizona Real Estate Brokers License (1995-Present), Arizona Association of REALTORS Board of Directors (2008-Present), Arizona Association of REALTORS Professional Standards Committee (2008-Present), AAR Certified NAR Code of Ethics and Professional Standards Instructor, Southeast Valley Regional Association of REALTORS President-Elect (2011) Southeast Valley Regional Association of REALTORS Board of Directors (2008, 2009), Southeast Valley Regional Association of REALTORS Grievance Committee Chairperson (1998-2007), Southeast Valley Regional Association of REALTORS Bylaws Committee (2008-Present), Southeast Valley Regional Association of REALTORS Education Committee (2008), Arizona Association of REALTORS Forms Committee - Residential Purchase Contract (2005), Arizona Association of REALTORS Forms Committee - Residential Rental Agreement (2008), Arizona Association of REALTORS Forms Committee - Buyer Broker Agreement (2009), Arizona Association of REALTORS Presidents Advisory Group, Road to Professionalism (2009), Arizona Association of REALTORS GRI Curriculum Review Committee (2009), Arizona Department of Real Estate, Commissioner's Education Advisory Group Sub-Panel B (2010) Arizona Department of Real Estate, Commissioner's Statute and License Review Committee (2007)

Organizations
National Association of REALTORS, Arizona Association of REALTORS, Arizona Real Estate Educators Association (AZREEA), Arizona Regional Multiple Listing System (ARMLS), American Notary Association, Southeast Valley Regional Association of REALTORS (SEVRAR), Southeast Valley Regional Association of REALTORS Women's Council of REALTORS (2010-Present), Phoenix Association of REALTORS (1994-2000, 2005-2009), Scottsdale Association of REALTORS (1994-2000, 2005-2009), Maricopa/Glendale Association of REALTORS (1994-2000, 2005-2009),

Publications
"Real Estate in 2008"- Lifebushido Publishing (Contributory Author), SEVRAR Magazine, Internet Crusade, RealTown ListServe, Blogger.com, Active Rain

Education/Credentials
- AAR Certified Ethics and Professional Standards Instructor, Graduate REALTOR Institute (1993), Certified Negotiation Expert (CNE), Over 100 Hours of annual real estate continuing education, Annual Ethics and Professional Standards Development Workshops as required by the National Association of REALTORS, Approx. 36 hours of NAR Code of Ethics training annually, Numerous IDW, Seminars and Train the Trainer programs, Business Management Degree - 1981

Awards and Honors
2009 REALTOR of the Year Award, Southeast Valley Regional Association of REALTORS (10,000+ Members), Double Platinum Production Award ($45,000,000 Sales Volume)- Keller Williams Realty Int'l (2001), Top 15 Sales Production Keller Williams Realty International (2001), Top 5 Sales Producation Keller Williams Realty Southwest Region (2001), Top Recruiter Award - Keller Williams Realty Int'l, SW Region (2002), Who's Who in U.S. Executive (1983), Who's Who in U.S. Real Estate Professionals (2007)

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