Expert: Derek Hamilton - 6/25/2010

Question
Derek
On May 1 we made an unconditional offer to purchase a house with a $20K deposit. Our broker did not advise us against it. Although I have owned 3 houses, have never sold a house to buy one, always being in a rental situation. It never occurred to me that I might be unable to sell mine in the timeframe between offer and closing.
I am now 3 weeks before closing and my house has not sold. I am assuming my options are to ask Buyers to wait but want to be fair; what costs am I liable to cover? what is reasonable?
second option is that they put the house back on the market and I pay the difference between my offer and their new offer plus any other costs to them?
are there other options?
If I am sued what is my recourse with my broker which is the listing and buying broker. Do I even have any recourse?
thank you
T

thank you

Answer
Hi T,
You need to Close as you have a firm Contract. You should ask the Seller for an extra 30 or 60 days! See if your Agent can arrange for an Amendment on the closing date. You could be liable for the difference between the price you paid and what the property Sells for if it went back on the market plus interest and any other costs relating to the transaction. Very little chance of recourse with the Broker. They didn't hold a gun to your head to buy the property. You had an option to Sell your own home first before you purchased. Please call your Real Estate Lawyer A.S.A.P.
If you don't have the funds to close on the new property and it isn't looking very good that your home is going to sell you might be smart to let everyone know now !! See if you can be released and see if they can Sell it again before the closing date? Maybe your home is over priced? What about a price reduction? Talk to your Agent.
Thanks,
Derek