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Buying or Selling a Home/enforcable purchase contract

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Expert: - 4/20/2010


Question
I am the BUYER. I signed a Purchase Contract in AZ.It was to be an ALL Cash deal on a Condo that is in a community of more than 50 units.I BREACHED the contract by refusing to close Escrow after the 10 day inspection time frame. My reason for NOT wanting to Buy the Condo ( which I emailed to the Escrow Agent )was the Fact that the Condo appears to be Thousands of $ more than others of Like kind.I have been served a Cure letter and threatened to be Sued. I feel there are several PROBLEMS w/ the contract I signed. 1)NO H.O.A. Addenda was presented, signed, or included. 2)Seller NEVER delivered a completed AAR SPDS form to ME.3)SELLER used Arizona Asso. Of Realtors Contract when I found the property on Line ( private ) listing NOT on the MLS.The property was NOT Listed ON the MLS.4) I DO NOT believe the Legal Description on the Contract is correct. and Lastly, the Legal owner of the property was Represented by her SON and a friend of the Son when we meet, negotiated and signed the contract. Finally , my question...sorry  so long..Is this Contract Enforceable ? Can they Sue me for damages or force me to BUY the Condo. Thank You Very much for your HELP..God Bless you..Patrick

Answer
Hello Patrick - The AZ AAR Residential Real Estate Purchase Contract 05/05 indicates the parties have agreed to mediate before seeking litigation... so don't be too threatened by the ignorance of the other seller/representative. Having discovered 'material' information during the inspection period and electing to exercise your right to cancel is not a breach of this contract rather it is exercising your right to invoke cancellation according to Section 6j "disapproval" which allows you to either immediately cancel and receive your earnest deposit back or allow the seller an opportunity to rectify the situation. obviously you would have chosen the first. If no HOA info was presented according to the terms of the contract then you would have 5 days after receipt to review the information to ensure you were acceptable with the conditions of the HOA. If someone other than the seller signed the contract there is no contract. You can check on maricopa.gov and search by the property address or seller's name to see whose name shows up as owner of record. If it is not the person who signed the contract then there is a problem... who did you give your earnest money to? Did you get a receipt? If it's a title agency then you have a better chance of a return of your earnest money. Whether the contract is enforceable is a legal question and you definitely need to seek either the Designated Broker of the REALTOR that represented you, or, a real estate attorney immediately as time is of the essence in contract terms and a delay in enforcing your position could cost you your negotiation position. Because I am not an attorney, I cannot advise you how to represent yourself. You must seek a 'real estate attorney' at your earliest moment... they are not that expensive. I recommend here in AZ you contact Bryan Memmott of Brown and Memmott PLLC. His phone number is (480) 656-8358 and their offices are in Mesa. Tell him I referred you to him. He will tell you straight what you should do. I anticipate this will lead you in the correct direction. Let me know how you make out. - Todd Menard

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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