Expert: Jessica Bryan - 9/25/2006

Question
I live in the state of Ohio.  We viewed a home listed by agent A and was shown to us by Agent B.  We were pre-approved by our lender so were pretty confident going into the process.  We made an offer, put down $500.00 earnest money with Agent B.  Terms included our own inspection at our costs.  Agent B got with Agent A who got with her seller.  Terms were reviewed and written acceptance ensued from the seller.  We met all terms of the contract.  We paid the agreed $400.00 to the lender for application and FHA inspection.  We paid $280.00 for our own inspection.  All deadlines met.  Closing set for 28 days out.  Closing was set for a Monday and on the previous Friday our lender calls us and says "does the seller realize he/she is required to bring approx. $7k to the table to close per the agreement".  I states yes, as when I asked Agent B, is this a good dealy, she stated "absolutely... the seller is even willing to bring $7k to the table to close!"  To make a long story short, lender is approached by another person in same office who happens to be good friends with Agent B and says... "hey, the seller did not know they had to bring that much to the table.  Agent A misread the PA and supplied the seller with a proceeds sheet stating no more than $4k was required.  Just have your buyers take that soft second for the $7k so the deal can be closed".  Our lender said "heck no!  These buyers are not responsible for realtor/seller error.  Bring me a deal I can work with, like, dipping into the commissions to make this deal happen with no additional costs to my buyers!"

So, here we are, Sunday evening, no closing scheduled for tomorrow and both realtors not nearly as active as my lender to get this situation straightened out!  What are the seller's options?  Can he fire his realtor and just sell the house to us?  What is the incentive for the realtors to cut into their commissions?  Help?  If the lawyer card is brought out on our behalf, can the house be tied up until it is settled by the courts?  What about all our expenses plus the fact that we currently rent our home and in 5 days, well, we are moving SOMEWHERE!  Our home is already re-rented!  Any advice would be appreciated!
Christine

Answer
Hi Christine;
I don't know how the seller wouldn't be aware of the additional funds since it was probably written into the contract which they signed. If it wasn't then you have to close regardless and will have to pay the additional money.  Everything should have been in writing and if so then the agreement holds and is the legal instrument.  You will need to push your agent for a resolution and stand firm to all agreements made in writing.

The contracts are very clear, but to be on the safe side, contact the closing attorney to discuss legal remedies if the two agents are unable to work things out.

Good luck,
Jessica Bryan