About Keith Broad Expertise I can answer questions on purchasing real estate; from first-time buyers to experienced real estate investors. I can answer questions on inspecting homes/properties for structural, plumbing, electrical, roofing, problems.
Experience I am a licensed realtor in British Columbia Canada. I owned and operated a construction/renovations company for 14 years. I inspected homes for potential buyers for 3 years. I am a qualified drafstman, carpenter, project manager, site supervisor.
We recently made an offer on a home. It was counter-offered and it was accepted by us, pending home inspection and financing. We decided not to purchase due to our inspection. We are now being questioned and are required to submit a letter stating the reasons for not taking the home. Is this common practice being asked for a letter stating why we do not wish to buy the home?
Bob & Sally
First Time Home Buyers
Answer Hello, Bob & Sally;
Thank you for your question. My question to you would be, "Who is questioning you and who is requiring you to write a letter of explanation?"
I'll assume the answer is that it's the seller's agent or the seller him/herself doing the questioning/requesting.
Was the offer made/accepted "Subject to the Buyer at the Buyer's expense obtaining and approving an inspection. This condition is for the sole benefit of the buyer" in this or similar wording?
Did you have a Realtor write up your offer or did you write the offer yourselves?
The only obligations you have to the seller are those specifically written down within the signed contract between you and the seller. There is no such thing as an unwritten obligation on your part when it comes to real estate. If a letter of explanation is not included as part of your written agreement with the seller, then you are under no obligation to provide one. And I recommend you don't. It's difficult to deny something once you've written it in a letter.
The courts generally hold the view that buyers and sellers must enter into a contract 'in good faith' which means that neither party should treat a contract lightly or frivolously. And if they do, they risk having damages assessed against them if sued for losses successfully. To collapse a legally binding deal on the basis of a minor item discovered by a building inspector, such as a broken light switch, the court would view this as being insufficient reason to not complete on the sale, unless a dollar amount is specifically addressed in the body of the agreement.
Everything depends on how your agreement is worded. Even the financing clause may or may not give you sufficient cause to collapse the deal. Courts don't like 'escape clauses' and expect buyers to be serious when they enter into a contract to purchase. If a Realtor did not represent you and write the agreement for you, then I strongly suggest you contact a lawyer and take your guidance from him/her.
Good luck, I hope this helps.
Keith
