Expert: Karyn Foley - 1/3/2007

Question
My husband and I signed a purchase agreement with a buyer this past Saturday.  Now, the potential buyer is experiencing buyer's remorse and may want out.  According to our purchase agreement there is an attorney approval clause that states "agreement is contingent upon purchaser and seller obtaining approval of this agreement by their attorneys as to all matters contained herein.  This contingency she be deemed waived unless purchaser's or seller's attorney, on behalf of their client, notifies listing and selling broker in writing as called in pg 22 of their disapproval no more than 5 full calendar days from acceptance."  Does this mean that the buyer can back out?  What happens to the deposit?  What can I do to protect myself from this happening?  Thanks !

Answer
Dear Krys:  Not having your contract in front of me precludes some problems or insight on my part, plus too many legal questions.  We, as agents, cannot "practice law without a license" so to get legal advice, consult an attorney.  However, being very practical and realistic, if some one gets remorse so soon, they probably do have an out and frankly, let them out as soon as possible and get going on another deal.  You cannot force some one to go ahead, and if you do try, it could be costly and certainly a monumental waste of time, hope and energy.  Give the deposit back and  get an unconditional cancelation and be happy that this remorse happened sooner rather than later.  Chances are it won't happen a second time, and there is little you can do to protect yourself. You have an attorney, but if you have an agent as well, this may be overkill unless you are in an area, like New York, that has the agent secure the buyer, and the attorney that normally handles the transaction.  Here in California we have escrow companies that do all that, and attorneys are rarely involved unless there is an unusual circumstance or problems arise.  If you have an attorney that does your deal, sit down with the attorney and address this issue.  I know it is a shock and disappointing when something falls through.  There are no guarantees, so brush off this glitch, put your ego away, and just go along with your representatives help, support and advice.  Sometimes this happens, but next time should be better.  Good luck on your next endeavor, and have a Happy New Year and success in selling!  Karyn Foley