Expert: Karyn Foley - 5/1/2006

Question
Hi, This is looooong-We live in NJ and listed our house for $1,199,999.99 and within the first week had two offers.  One for $1.3, waiving inspection, and a July 21 close and one for 1.220, with inspection, with a closing of June 1.  We took the higher offer for the money and for the waiver of inspection.  Both offers offered about 45%down, 30 yr. conv mtgs.  The 1.3 guy came thru attny review and met all contingencies, had appraisal, mortgage, etc. put down his 10% and out of nowhere decided he wanted a 5th bedroom so it would not work.  He was clearly in breach.  Sure enough realtor (dual agency)comes in after and says they misspoke--house appraised for 1.2.  My attny sent letter stating we are taking backup for 1.220 and intend to sue for breach.  He has now come back and wants 1.2 (appraised value) and will waive all contingencies and sign for liquidated damages where we keep his 130K if he fails to close with us by June 15.  Now he already set back by backup to June 26 instead of June 1 and has been difficult...I just released backup contract to attny and other party today.  Am I facing exposure to legal action from second party if I do let first guy get it now since he is further along in process and I have liquidated clause?  I hate to cancel on them now but need to do what's best for us. Thanks

Answer
Sorry you are in such a prolematic situation.  However,real estate agents cannot, and can face liability, if they give legal advice.  I feel certain that this is, or should certainly be, in all of the states.  You need to obtain legal advice from an attorney.  The same holds for accounting advise, we are simply not allowed to help out in areas that are specialized and beyond our professional scope of knowledge. Please do not search around for some agent who feels they know the answer, even though most of us have been in similiar situations with clients, we back off from telling them what to do because of the high exposure of our license requirements.  I feel disappointed that I cannot help, but your attorney will congratulate me for my prudence, and you will thank me later after you receive the correct direction from the correct professional.  Good luck, I feel certain you will be OK with the proper legal support.  Karyn