Expert: Jessica Bryan - 8/30/2007

Question
We recently found our dream home in our price range.  It is listed through a real estate company but we decided to write the owner of the home directly.  They wrote us back and said they would love to sell the home to us but it had just gone under contract with contingencies.  My question is: If they wanted to sell the house to us instead would they be able to get out from the contract they are in?  What sort of contingencies would allow this?  We are heartbroken we cannot have this house, as we have searched for years for the perfect home.  I believe the owners do want to sell us this house but just curious if there were penalties, etc for them breaking a contract.  Any and all assistance would be greatly appreciated.

Thank you!

Answer
Dear Kim;
It really depends upon the contingencies that are in the contract.  If it is dependent upon a loan or an inspection then they really can't break the contract without risking penalties.  If, however, the contract is contingent upon the buyers selling another home, they might be able to break the contract and sell to you.  It is for the Sellers to discuss with their agent.  However, the other part of this is that you must go through their agent since they cannot break their listing agreement to sell to you unless they have the type of listing agreement that specifies that if the Seller finds the buyers they do not owe a commission to their listing agent.

Why don't you do a back-up offer and hope that during the inspection process or other contingent activities something goes wrong and the Buyers back out.

Good luck and best wishes,
Jessica Bryan