Expert: Jessica Bryan - 7/29/2006

Question
I NEED TO KNOW IF I CAN GET OUT OF MY CONTRACT WITH THE BROKER TO LIST MY HOUSE?  OUR HOUSE HAS SOLD TWICE AND THE BUYERS BACK OUT BOTH TIMES. NOW WE DO  NOT CREDIT WISE OF FINANCAILLY QUAILFY FOR THE PROGRAMS WE WOULD NEED TO GET FUNDING FOR OUR NEW HOUSE BEFORE THIS ONE COULD SELL. WE ARE PROBABLY GOING TO LOOSE OUR NEW HOME AND THE $ WSE HAVE IN IT. IF WE BACK OUT OF OUR CONTRACT AND SELL OUR HOME TO A INVESTMENT COMPANY HOW DOES THAT WORK?

Answer
Dear Charlene;
First, let's be clear as to what the term "sold" represents. A home is not actually sold until it closes. However, I assume you are referring to the fact that the home was under contract which both parties signed. I am puzzled as to why Buyers backed out of the contract twice.  Usually when an offer to purchase becomes a contract the only things that would cause Buyers to back out would be non-disclosure of material facts, inspection items or non-qualification for a loan.  All three of these things are covered in the contract.  I would also say that the Sellers would be certain to ask for a pre-qualification letter so that they knew that they had qualified Buyers for their home before they signed a contract.  If the problems were disclosures or inspection issues, then it is important that you as the sellers repair  and/or disclose before a contract is completed.  I don't see this as an agent issue so I wonder why you want to get out of your contract with your Broker.  However, if there is something I am not seeing here that is a problem with the Broker's performance then you can certainly call the Broker to discuss you concerns and ask to be released from the contract.  (Follow up with a certified letter as well.)

If you want to sell to an investment company this will also require a contract which will mean you should employ an attorney to look over the agreement.  

Good luck and best wishes.

Sincerely,
Jessica Bryan