Expert: Ray Beggs - 7/11/2007

Question
we are contracted to sell our home, and buy a newly constructed home, within 2 weeks, in PA. The selling of our current home is based upon finding suitable housing. The new house's water well failed federal and state safe drinking water standards, and there is water in the basement after a heavy rain (which the contractor states he can remedy by repaving the driveway). The contract for the new home states that the Buyer, us, needed to have the water analysis conducted within 30 days, to give us the option to cancel the contract on the new home. We gave our realtor a check for the fee for the test, but the test was conducted after 30 days. Also, the closing costs for the new home have increased $6000 to secure better a better rate, however, that was not the terms under which we sold our house . OUR realtor stated that we will be forced to get out of our current home by the settlement date based upon the sellers agreement, however, the buyer failed to provide a second good faith deposit on time. Can the buyer of our existing home force us to perform and sell our current home? We put down $3000 earnest money on the new home. Can we get out of both the sellers agreement and the buyers agreement? Can we get our earnest money back? Do I need an attorney to get out of this?

Answer
Hi Brad,

Usually, I like to see problems fixed between the buyer and seller without having to utilize an attorney but, you have a pretty sticky situation...one that might best be rectified by a real estate attorney. I would first try to solve this between the parties and agents. Make sure that everything that is communicated to you and from you is in writing. A paper trail could end up being very important. Also, remember that time is of the essence. I would jump on this right away. You've also got to sit down with your wife and figure out exactly what you are trying to accomplish. Do you want out of both deals and want all of your money back? Are you willing to go ahead with the deal if certain things are done? You've got to know specifically what you want so that you send a very clear message to all parties. One of the biggest problems in these types of situations is miscommunication and misunderstandings.

If you are getting nowhere with this, then it could be time to get an attorney involved.

Best of luck to you,

Ray