Legal Question (by Roy [AL]) Apr 8, 2021 3:44 PM|
Legal Question (by WMH [NC]) Apr 8, 2021 4:26 PM
Legal Question (by NE [PA]) Apr 8, 2021 4:32 PM
Legal Question (by Roy [AL]) Apr 8, 2021 4:38 PM
Legal Question (by Mike45 [NV]) Apr 8, 2021 4:43 PM
Legal Question (by Mike45 [NV]) Apr 8, 2021 4:44 PM
Legal Question (by Roy [AL]) Apr 8, 2021 4:58 PM
Legal Question (by Sisco [MO]) Apr 8, 2021 5:13 PM
Legal Question (by Robert J [CA]) Apr 8, 2021 5:29 PM
Legal Question (by Landlord ofthe Flies [TX]) Apr 8, 2021 6:22 PM
Legal Question (by Roy [AL]) Apr 8, 2021 6:26 PM
Legal Question (by Roy [AL]) Apr 8, 2021 6:56 PM
Legal Question (by Roy [AL]) Apr 8, 2021 7:09 PM
Legal Question (by Sisco [MO]) Apr 8, 2021 7:26 PM
Legal Question (by Bonanza [NC]) Apr 8, 2021 8:14 PM
Legal Question (by Ray-N-Pa [PA]) Apr 8, 2021 8:27 PM
Legal Question (by Roy [AL]) Apr 8, 2021 8:32 PM
Legal Question (by Sisco [MO]) Apr 8, 2021 9:59 PM
Legal Question (by NE [PA]) Apr 9, 2021 6:54 AM
Legal Question (by Roy [AL]) Apr 9, 2021 7:36 AM
Legal Question (by S i d [MO]) Apr 9, 2021 8:26 AM
Legal Question (by Roy [AL]) Apr 9, 2021 8:46 AM
Legal Question (by Oregon Woodsmoke [ID]) Apr 9, 2021 10:52 AM
Legal Question (by Roy [AL]) Apr 9, 2021 3:54 PM
Legal Question (by Mike45 [NV]) Apr 9, 2021 3:55 PM
Legal Question (by BRAD 20,000 [IN]) Apr 10, 2021 2:14 AM
Legal Question (by Steve [MA]) Apr 10, 2021 6:14 AM
Legal Question (by don [PA]) Apr 12, 2021 9:54 AM
Legal Question (by mike [CA]) Apr 13, 2021 12:58 PM
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Legal Question (by Roy [AL]) Posted on: Apr 8, 2021 3:44 PM
I am hoping someone here can save me $150.00 by me not having to call my attorney to answer this question about Earnest Money.
Let say a RE contract to Purchase a House has been signed by both Buyer and Seller. In the contract it says Earnest Money will be paid by the Buyer and deposited into an Escrow account within 14 days of the contract date of March 17, 2021. Now that more than 14 days have passed and no Earnest Money has been paid, does this make the contract invalid and not enforceable in a court of law? --68.63.xxx.xxx
Legal Question (by WMH [NC]) Posted on: Apr 8, 2021 4:26 PM
Short answer, yes, as that was one of the terms of the contract. It's been violated, contract is dead. --50.82.xxx.xxx
Legal Question (by NE [PA]) Posted on: Apr 8, 2021 4:32 PM
Legal Question (by Roy [AL]) Posted on: Apr 8, 2021 4:38 PM
'Contract is dead',...does that mean the entire contract is now "null and void" and not worth the paper it was written on?
Legal Question (by Mike45 [NV]) Posted on: Apr 8, 2021 4:43 PM
"It depends" is the correct answer.
Does the Contract provide anything about "time is of the essence"? Does the Contract say "every term is material"? Is a demand for performance required under state law?
What does the Buyer say about its default?
I would serve a demand for performance, or a notice that contract has been breached and is no longer enforceable by Buyer -- depending on the result I want. Or maybe even a demand that Buyer make the deposit of earnest money by April __, 2021 or the Contract is off. Do I want to carry out the sale or get out of it? Do I want to sue for breach or just get out of it?
Legal Question (by Mike45 [NV]) Posted on: Apr 8, 2021 4:44 PM
Keep in mind possibility that the property can be tied up for years if things get ugly! --76.4.xxx.xxx
Legal Question (by Roy [AL]) Posted on: Apr 8, 2021 4:58 PM
With this legal question, I am neither the buyer or the seller. I have asked this question on behalf of the seller.
The seller wants to get out of this contract. He realizes that he and his wife may have signed a Contract with the devil. And here the buyer/devil has not paid the Earnest Money stated in the contract. Can they (sellers) walk away from this contract without being sued? --68.63.xxx.xxx
Legal Question (by Sisco [MO]) Posted on: Apr 8, 2021 5:13 PM
If they have signed a contact with the devil, they will be sued. Doesn’t mean they won’t prevail in court. Anyone can be sued for frivolous reasons. --67.43.xxx.xxx
Legal Question (by Robert J [CA]) Posted on: Apr 8, 2021 5:29 PM
I had a contract that the buyer had to deposit money to keep the deal in play by 15 days after the signing, or the deal was dead. Then on the 16th day my agent called the buyers agent and got blown off. We relisted the property. Then the buyer filed a lien against the title of the property, saying, "they were the buyer and I can't sell the property to anyone else"! A lien was placed on my property pending the outcome of a "hearing".
So anyone at anytime can place a fake lien and hold up the sale of your property. In my case I simply re-rented out the property and filed a suit in small claims court, because the buyer failed to perform therefore the deal was dead. --47.155.xx.xxx
Legal Question (by Landlord ofthe Flies [TX]) Posted on: Apr 8, 2021 6:22 PM
Doesn't matter what we say. Call the title company listed on the contract and ask them. Their word is the official word you need. To make things clean, they probably want a contract termination form signed and submitted.
I'm assuming your contract is like Texas' contracts in that earnest money is required before the contract can be considered fully executed. There should be a place on the contract to sign once fully executed, and the time and data of that execution because that's when the clock starts on the time limits. But earnest money usually comes before the signature is made on that line. It's usually the last page and has place for title company to sign that they received the check. I'm assuming that if the contract wasn't fully executed you have no contract. But check with the title company. They're lawyers too so no need to contact one for yourself. --108.69.xxx.xxx
Legal Question (by Roy [AL]) Posted on: Apr 8, 2021 6:26 PM
Thanks Robert J,
I think you answered my question pretty well,..I will pass that answer on to the sellers here.
Legal Question (by Roy [AL]) Posted on: Apr 8, 2021 6:56 PM
I have attempted to get the sellers here to call and make an appointment with my attorney who is a real estate specialist. It will cost them $150.00 for an office visit which I think would be well worth the expense considering their predicament. These people seem to have a 'fear of lawyers' which is common among some southern people with limited education. --68.63.xxx.xxx
Legal Question (by Roy [AL]) Posted on: Apr 8, 2021 7:09 PM
Legal Question #2: I asking this one just out of my own curiosity.
Like above, a Buyer and Seller sign a contract to Sell a House. Earnest money is paid here. One week before closing, the Seller changes his mind (maybe he lost his job or had some other personal crisis). Seller wants out of the contract but the Buyer wants to buy house anyway and is willing to take this Seller to court to 'force him to sell his house',...regardless of his personal problems.
Question: In a court of law,..can anyone be legally forced to sell their house to someone else,...even when a legitimate contract exists? --68.63.xxx.xxx
Legal Question (by Sisco [MO]) Posted on: Apr 8, 2021 7:26 PM
10% of contract purchase price is typical mitigated damages due to buyer if seller fails to perform as agreed. --67.43.xxx.xxx
Legal Question (by Bonanza [NC]) Posted on: Apr 8, 2021 8:14 PM
(this is not legal advice ... blah blah blah)
No the contract is still valid in NC. You must demand the Earnest Money and they have a business day to fulfill the demand.
Paragraph 1(d) of the NC 2-T Contract states: “Should Buyer fail to deliver either the Due Diligence Fee
or any Initial Earnest Money Deposit by their due dates… Buyer shall have one (1) banking day
after written notice to deliver good funds to the payee. In the event Buyer does not timely deliver
good funds, Seller shall have the right to terminate the Contract upon written notice to Buyer.”
there is a 2-step process set forth in the Contract if the Initial EMD or Due Diligence Fee is not delivered by its due date. The demand is given with NC Realtor form 355-T
If the funds are not received the seller can terminate the contract by written notice to the buyer. A form 352-T is used to terminate the contract. --65.188.xxx.xxx
Legal Question (by Ray-N-Pa [PA]) Posted on: Apr 8, 2021 8:27 PM
Can't speak to your state's laws, but in Pa, every contract requires a consideration. It appears there was no consideration paid for the contract.
Did the contract outline the limits for non-performance. Typically it is limited to only the hand money. But since there was no hand (earnest) money the only question left is was the contract recorded?
If it was not recorded - nothing happened. You had an offer to purchase the place and they didn't move forward on the offer. NEXT --24.154.xx.x
Legal Question (by Roy [AL]) Posted on: Apr 8, 2021 8:32 PM
based on your answer to #2 question,...the answer is NO,..no one can be forced to sell their home . Pay a 10% fine yes, but the seller can not be legally 'forced' into selling the home. --68.63.xxx.xxx
Legal Question (by Sisco [MO]) Posted on: Apr 8, 2021 9:59 PM
Roy, correct. Seller can choose to not follow through with their contractual agreements. Then the question becomes; how much was buyer harmed? --67.43.xxx.xxx
Legal Question (by NE [PA]) Posted on: Apr 9, 2021 6:54 AM
In some cases, in Pa you can force the sale of a home with a signed contract and paid deposits, etc. --70.44.xxx.xx
Legal Question (by Roy [AL]) Posted on: Apr 9, 2021 7:36 AM
A couple of days ago, I Googled this same question. I read responses from law firms in different states. All of the responses I read did mention the contract word "Consideration" and what that word actually means in a legal sense. Other than that, it seems the question of 'is the contract is valid without Earnest Money' had different interpretations in different states. So, this may a state specific issue. --68.63.xxx.xxx
Legal Question (by S i d [MO]) Posted on: Apr 9, 2021 8:26 AM
Roy, I get the desire to save $150, but in this case I think you do want a firm legal opinion from an expert in your location.
One thing I recall back when I had some Sellers refusing to perform: my attorney said it's a rare judge who will force someone to sell their house. The American tradition is to protect a persons' home, even if they have sign a contract saying they will sell it and even if everything has been done properly with all i's dotted and t's crossed. Like Sisco said, in Missouri it is common to have a 10% "failure to perform" penalty based on the contract price of the house, but that may or may not apply in your area. This may result in nothing more than a lien on the property, if the Sellers have no other assets/cash to fulfill the judgment.
I have another idea I'll email you here in a minute.... --107.216.xxx.xxx
Legal Question (by Roy [AL]) Posted on: Apr 9, 2021 8:46 AM
I have done business with my attorney for 15 years. He has never once charged me for a phone call (even though many lawyers do). I may just call him. My attorney did tell me once during a closing and some somewhat jokingly,..'that he gives his clients what they pay for'. You pay nothing, you get nothing. --68.63.xxx.xxx
Legal Question (by Oregon Woodsmoke [ID]) Posted on: Apr 9, 2021 10:52 AM
The sale might be over, but there is paperwork to be done before your seller is free of the buyer. Your friend needs to do that correctly. Is this not something that the seller's agent is handling for them?
In Idaho, if the seller doesn't perform and the buyer has done everything required in the contract, it is mighty expensive to back out of the sale. It is a lot more than a 10% penalty.
Adding this: sometimes when a contract gives a number of days to perform, it only counts the business days, not weekends and holidays. Something to be aware of. --76.178.xxx.xxx
Legal Question (by Roy [AL]) Posted on: Apr 9, 2021 3:54 PM
The is no 'seller's agent here. This resulted when the Devil was the first to answer the Ad of a FSBO. The devil was wearing a disguise so that his horns would not show.
With my experience, I can spot a devil just by listening to all of their smooth talking B.S. --68.63.xxx.xxx
Legal Question (by Mike45 [NV]) Posted on: Apr 9, 2021 3:55 PM
I do not know your state's laws, but I have forced the sale of a residence when a Seller refused to go through with it. The lawsuit was for "specific performance." We sued to force the Seller to carry out his obligations under the written sales agreement. If I remember correctly, the Seller still refused to sign the papers, and the court clerk signed on his behalf.
Some contracts cannot be "specifically enforced", but real estate sales are generally subject to specific enforcement. --76.4.xxx.xxx
Legal Question (by BRAD 20,000 [IN]) Posted on: Apr 10, 2021 2:14 AM
I spend $20 a month for LegalSheild subscription. (A MrLandlord vendor)
I can call and talk to a real atty any weekday with real questions like yours and get real legal answers for my state.
A full year costs less than one appt with my atty. I call several times a year. Has saved my rear many times.
Legal Question (by Steve [MA]) Posted on: Apr 10, 2021 6:14 AM
Most of the "legal" type questions that are asked about on this Q&A forum can have many different "correct" answers. Depending upon not only which state the property is located in but in most cases (if the issue makes it to court) which Judge is actually presiding over the case will determine the eventual outcome. I do think that this is an excellent place to get some input on what others have experienced or think about a certain legal situation. I've found that many times a poster will offer a perspective that hadn't occurred to me as even being relevant to the original matter. However ultimately it's really up to each individual to analyze the responses & decide what is the best course of action for them to follow.
Many years ago when I had a need for some legal advice, I consulted a wise old Barrister who during our first meeting made 2 comments which I still vividly recall whenever I'm considering any sort of legal action.
"Law and justice are not always the same."
"In law, nothing is certain but the expense."
Legal Question (by don [PA]) Posted on: Apr 12, 2021 9:54 AM
what Mike45 wrote is correct --70.90.xx.xxx
Legal Question (by mike [CA]) Posted on: Apr 13, 2021 12:58 PM
one of the elements of any contract (K) is "consideration". lacking that the contract is not valid. they did have a PROMISE of consideration (that equates to a promissory note in some areas) so that might serve until such time as they breach the promise to deliver the deposit timely. normally if the seller wants to proceed he might issue a notice to perform (deliver good funds) and then declare breach if they don't. but since the seller is now hesitating i would simply declare breach. the issue then becomes whether the buyer has any spine and a wallet to make a fuss. he will have a tough time making a case since he did not comply with the terms of the K.
the seller has opened a can of worms by trying to do a self help sale. i got 5 bucks says the K is silent on many items we here would have included. lawyers will get involved but this is a case where they require cash up front and few people have the stacks to file suit and especially a weak one as we have has described. we've all had folks threaten to sue us...i tell 'em go ahead. they never do once they learn that the suits they threaten will not be fought on contingency and the lawyer wants $7-10,000 up front --75.80.xx.xx
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