Expert: liznarr - 8/12/2008

Question
My agent faxed me a contract to sell my home while I was away for an extended period. There was a contingency in the contract that the owner see the house as she resides in Canada. I called my agent and asked him when the buy was going to see the house. He said she already did. I then asked when the contract is binding. He said as soon as you sign it and submit it. I did. About 10 days later my agent called me and said the buyer wanted to see the house. I asked why. he said he did not know for sure, maybe to measure for furniture buying. Then I find out the buyer has never seen my house. The deal may blow up. I have already made arrangements to relocate to another city. I need to move,I need the cash,and I may be in a financial pickle due to this error. What recourse if any do I have? Thank you in advance for your response.

Answer
Hi Robert,

I haven’t seen your Contract with the exact wording for the Purchaser to “see” your house, so I can only give you general suggestions.

Was there a time period/deadline in your Contract in which the Purchaser was to see your house, or was there a notification process to you after Purchaser saw your house?  In the absence of a deadline to see your house and written notification when the Purchaser did, in fact, see your house, this could be a grey area.

I am assuming that your listing agent is representing YOU.  If so, he should have made sure that there was a deadline and/or written notification process stated in your Contract for the Purchaser’s “visit.”  Without this language, you had no protection against a late “visit” by the Purchaser; and the Purchaser could technically wait until the day before closing to “see” your house and decline.

I would notify both your agent and his BIC in writing of your agent’s prior statements regarding the fact that the buyer has already seen the house, and that the buyer probably wanted to measure for furniture-buying on the upcoming visit.  Try and document the dates of these conversations.  Hopefully, you might have fax or email documentation.

I, personally, would go a step further and advise the BIC and agent that should this deal fall through after the Purchaser views your home (not because of financing or another reason), you will be expecting the BIC and agent to reimburse you for your out-of-pocket expenses and any other losses incurred due to having made some of your moving arrangements.

I certainly hope not, but should your deal start to fall apart, I would seek immediate legal advice.

Good luck to you, and write again if you have additional questions.

Regards,
Elizabeth