Buying or Selling a Home/Need To Back Out of Escrow
Expert: Sue Bernstein - 6/10/2007
QuestionA friend of mine's life partner passed away unexpectedly last week and they were in the process of selling their California home. The buyer has still been asking for certain contingencies for the sale... money allowances for seemingly unnecessary improvements. They've been going back and forth with no stipulated time frame for a response. My friend would prefer to kill the deal and move back into the home for financial/emotional reasons. Since there was no "living will" in place at the time of death and they both owned the home, there are also issues regarding probate, which I suppose could hold up the sale. They were scheduled to close the transaction in late June.
My questions are:
1) Can my friend kill the deal and if so, what are the legal requirements for doing so, as well as any penalties?
2) With these extenuating circumstances, can the proposed buyer come back and sue him?
3) Won't the buyer have to wait until all probate issues are cleared up before the sell can go through anyway?
Thanks so much for any help.
AnswerHi Cindy,
If your friend and his partner owned the home as joint tenants then there would be no probate and the property goes to your friend.
It sounds like your friend is still negotiating credits for repairs etc. Your friend can refuse any credits and see if the buyer goes away. The CAR contracts (probably the one used) always includes contingency dates so it must be reviewed and this is where your friend's agent has to step in and advise.
Your friend should get the advice of an attorney to determine if he is still bound to the contract. Part of the California contract reads that the seller will be delivering clear title to the property. The attorney will determine if that is possible and if the estate has to go through probate.
I hope this helps and good luck.
Sue Bernstein
www.SueBernstein.com