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Buying or Selling a Home/Seller can back out of contract with amendment?

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Expert: - 6/19/2009


Question
I am at 21 days of a 45 day escrow.  I will need to issue an amendment to the original contract removing my husband's name and replacing it with my father's.  My loan is approved and locked (with my father's name).  I know that the seller is trying to get out of the contract( he is throwing a fit about the already agreed upon termite inspection).  Would this amendment be his ticket out? My name will remain on the original and new contract.  

Answer
Hello Sapna - The issue is one of 'changes, modifications or alterations to the contract' rather than assignment since you are remaining on the deed and HUD-1 Settlement Sheet. To answer this question more completely you will need to review your contract for terms and conditions relating to changes, alterations or modifications during escrow and under what conditions the seller can unilaterally cancel,or reject, the contract claiming breach. I am anticipating that the loan is in BOTH your father's name and your own. If it is just in your father's name then the lender may not allow you to remain on the contract, Deed or HUD-1. Your father could always 'quit claim' you onto the deed after closing but to close it will probably require that only your father name appear on the HUD-1 Settlement Sheet and Deed. In this situation the issue would be a question of your 'right to assign with or without seller approval of assignee' and not changes, alterations or modifications of the contract. Remember, the situation is what it is... in other words, If loan approval required your father's credit then it does, and if the contract won't allow assignment without seller approval then so be it. If this is an AZ contract and the property is located in AZ please reply and indicate that... if so, I should be able to assist you more with understanding the terms and conditions of the contract or refer you to an attorney with real estate specialization. If your contract is not an AZ I do recommend you discuss this situation with your REALTOR who helped you write the offer and his/her designated broker, whose duty it is to provide supervision over your transaction. I am not an attorney and therefore this is not to be considered legal advice, rather it is to be considered real estate information that any professional REALTOR should be able to provide. I hope this has helped. - Todd

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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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