Expert: Toni Yates - 9/29/2007

Question
I am writing because I am purchasing my first home and I am being misled by the seller and my agent.  Initially, the seller stated that if I use their preferred lender that they would pay six thousand towards closing costs.  I have obtained a pre-approval from the preferred lender as well as another bank and now they tell me that they will not pay six thousand toward closing costs because I was able to approved with another lender.  They are now saying that the deal was only valid if I could not get approved with any other lender and had to go with their preferred lender.  Now that I have signed the pricing offer but have not paid anything towards escrow or down payment, is there anyway to break this contract?  Thank you for your time.    

Matt

Answer
Hi Matthew-
I'm sorry your first experience has been such a hassle. Please keep in mind that I am not a lawyer and that the laws vary from state to state however without seeing your contract, it sounds to me that you are dealing with a greedy seller who now feels they can get more than what they initially agreed to and a realtor who is representing the seller not you- the buyer. Bottom line is that a verbal contract, while binding, is not enforceable. In other words, for you to hold the seller to his offer you would need written proof either in your sales contract or possibly if the offer of closing cost assistance was made in the listing in your local MLS (Multiple Listing Service). The closing cost assistance should have been written into the contract by your agent. That being said, in my state (VA), yours would not be a legitimate offer without an earnest money deposit of some sort which would have been specified in the contract? As well, if your contract has ANY other contingencies such as a home inspection or HOA (Home Owners Association) contingency, etc. there are almost always ways to get out of the contract- a lawyer could best advise you. While I don't necessarily advocate that, if your realtor was truly acting on your behalf, they would assist you in determining your best course of action in getting what was agreed to or getting out of the deal. Good luck and I would suggest shopping for a new BUYERS agent.