moral & ethical question
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moral & ethical question (by confused [TX]) Apr 29, 2021 8:15 PM
       moral & ethical question (by Ray-N-Pa [PA]) Apr 29, 2021 8:25 PM
       moral & ethical question (by Susan [OH]) Apr 29, 2021 8:44 PM
       moral & ethical question (by plenty [MO]) Apr 29, 2021 8:50 PM
       moral & ethical question (by confused [TX]) Apr 29, 2021 9:34 PM
       moral & ethical question (by #22 [MO]) Apr 29, 2021 9:50 PM
       moral & ethical question (by Richard [MI]) Apr 29, 2021 10:31 PM
       moral & ethical question (by Richard [MI]) Apr 29, 2021 10:48 PM
       moral & ethical question (by Richard [MI]) Apr 29, 2021 10:57 PM
       moral & ethical question (by LisaFL [FL]) Apr 29, 2021 11:17 PM
       moral & ethical question (by hubba huibba [CA]) Apr 29, 2021 11:35 PM
       moral & ethical question (by Laura [MD]) Apr 30, 2021 3:39 AM
       moral & ethical question (by Jim in OC [CA]) Apr 30, 2021 6:21 AM
       moral & ethical question (by S i d [MO]) Apr 30, 2021 8:17 AM
       moral & ethical question (by Nicole [PA]) Apr 30, 2021 10:13 AM
       moral & ethical question (by 6x6 [TN]) Apr 30, 2021 10:27 AM
       moral & ethical question (by tryan [MA]) Apr 30, 2021 3:22 PM
       moral & ethical question (by TxlordTx [TX]) Apr 30, 2021 11:33 PM
       moral & ethical question (by Johnny B. [MA]) Apr 30, 2021 11:59 PM
       moral & ethical question (by Pmh [TX]) May 5, 2021 5:31 PM

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moral & ethical question (by confused [TX]) Posted on: Apr 29, 2021 8:15 PM
Message:

I'm selling my apt complex. it's a 12M deal. The purchase agreement is dated Feb 1 and ends 90 days later, which will be monday may 3 (sat&sun don't count). The buyers just informed they won't be able to close by may 3 and have asked for an extension. I Don't want to extend because I haven't found a better replacement property than this one so I'd like to keep it. However my wife says that ethically we are obligated to sell it because they have only asked for a four day extension and the reason for the extension is a title problem that wasn't anyone's fault.

So legally I don't have to sell it, but morally and ethically I probably should? What do you guys think? --70.129.xxx.xxx




moral & ethical question (by Ray-N-Pa [PA]) Posted on: Apr 29, 2021 8:25 PM
Message:

Once upon a time, there this thing called a 30 day closing period. Those days have long since passed especially in more complicated sales.

Extensions are the norm -

If you extend this sale - will that impact your second leg in your 1031 exchange/ 107 sale. What type of purchase are you making for your second leg? Another commercial place, NNN property or a maybe a DST? --24.154.xx.x




moral & ethical question (by Susan [OH]) Posted on: Apr 29, 2021 8:44 PM
Message:

How is a "title problem" not your fault? I'm confused... --76.189.xxx.xxx




moral & ethical question (by plenty [MO]) Posted on: Apr 29, 2021 8:50 PM
Message:

If you are down to Moral and Ethic... just sell. --172.56.xx.xx




moral & ethical question (by confused [TX]) Posted on: Apr 29, 2021 9:34 PM
Message:

the title problem isn't my problem because they had the title commitment on feb 22 and their attorney didn't start working on it until this week. it all should have been done a month ago. --70.129.xxx.xxx




moral & ethical question (by #22 [MO]) Posted on: Apr 29, 2021 9:50 PM
Message:

Totally not your fault. Their attorney dropped the ball. The close on time or you can walk. I would not ask your realtor about this - all they want is a filthy commission, regardless of what you think, want or is best for you. This issue is on the buyer and not you. If you don't want to close, you've done nothing wrong. They had 90 days to do their job and did not. I'd bet you can keep their earnest money if you so chose. --23.126.xx.xxx




moral & ethical question (by Richard [MI]) Posted on: Apr 29, 2021 10:31 PM
Message:

If it's not your fault and they want to extend, how much is it worth to them? Prices have been going up and you said you have not found a better property.

Would they pay, say a 100K extension fee, immediately and non refundable to make the deal go through?

Just asking?

After all, it was their lawyer's fault. --24.180.xx.xx




moral & ethical question (by Richard [MI]) Posted on: Apr 29, 2021 10:48 PM
Message:

Also, another thought. If the commission on the sale is 6 percent, that's what, $720,000? Maybe the listing and selling agents would kick in $100K each to get you to agree. After all, with this much money on the line, they both should have been all over the lawyer getting the title work done. Heck, if I was one of those agents, I would have parked myself on that lawyer's doorstep, gave a ride, most anything to get the deal closed. You now have negotiating power. This power is valuable. They want you to agree and sign, there will be a fee for that. THIS IS BUSINESS, not two friends sharing the price of dinner. If you had failed to perform, the buyer would likely ask for compensation. And, as I mentioned, the prices have gone up a lot since February. Likely by an amount larger than the fee you should get for agreeing to the extension. Even a modest 10 percent increase in value would be, what, 1.2 million. With that much money on the table, maybe a 300K fee is not enough. Maybe you would want to get it reassessed and use the higher value because what if it went up 20 percent (2.4 million). Would you just walk away from that much and let the buyer pocket that amount for nothing?

Failure to perform has consequences! --24.180.xx.xx




moral & ethical question (by Richard [MI]) Posted on: Apr 29, 2021 10:57 PM
Message:

Another thought.

Morals and ethics are about right and wrong. You have done nothing wrong. If you did something that caused the title to have a problem, knew it, and then used that to avoid selling I could see where they would apply or come into play. But you did nothing wrong.

Is it moral or ethical for the other party to ask you to forgo any increase in value that occurred because they made the mistake?

This is BUSINESS. There's not a reason to cheat or deceive. But there is also no reason to give something up without receiving compensation. --24.180.xx.xx




moral & ethical question (by LisaFL [FL]) Posted on: Apr 29, 2021 11:17 PM
Message:

Just say no to the extension. 90 days is plenty of time to close. Perhaps itís a blessing in disguise. They failed to live up to the agreement. --75.89.xxx.xxx




moral & ethical question (by hubba huibba [CA]) Posted on: Apr 29, 2021 11:35 PM
Message:

It's BS. Something has gone wrong. If they want to delay they need to put up cash money with no restrictions. --157.131.xxx.xx




moral & ethical question (by Laura [MD]) Posted on: Apr 30, 2021 3:39 AM
Message:

I would give them the extension (4 days) but they would have to pay for the privilege.

Not sure I would have an ethical dilemma if i did what i was contractually obligated to do, within the prescribed timeline. The buyers are the ones who did not complete everything as outlined in the contract within the agreed upon timeframe. The reason folks make contracts is so it is clear to everyone what needs to be done and when. --108.56.xxx.xx




moral & ethical question (by Jim in OC [CA]) Posted on: Apr 30, 2021 6:21 AM
Message:

Walk. Not your problem. --99.23.xxx.x




moral & ethical question (by S i d [MO]) Posted on: Apr 30, 2021 8:17 AM
Message:

Agree to extend closing at the rate of 1% of the purchase price ($100,000) per day. Nothing motivates people to get their act together like $$$. As much as people say things like "money isn't everything", there sure are a lot of us who willingly trade 40+ hours per week (33% of our life) to get money.

Or if you don't want to sell, then I see no obligation. If the contract reads, "If there is a title problem that takes longer than 90 days to fix, then the Seller agrees to extend the closing date", then and only then are you obligated.

Caveat: you've heard the phrase "happy wife, happy life" I'm sure. Make sure you and your spouse get on the same page with this. Competing financial goals does not make for warm bedfellows. --107.216.xxx.xxx




moral & ethical question (by Nicole [PA]) Posted on: Apr 30, 2021 10:13 AM
Message:

This has nothing to do with morals and ethics. Business integrity, perhaps, but probably not.

You say you don't want to extend because you haven't found a replacement yet. If it's a 1031, I'd say you're done and they forfeit. Why should you scramble? There is no guarantee they will be ready in four more days.

If it's not a 1031, I agree with above. I'd extend for a fee. I like the daily fee and would say they need to put that up front.

If you fail to extend, you're not getting a check the next day for the down money - they're going to make you go to arbitration to get it released and the property probably will be tied up and you unable to sell until it's cleared up.

It's not all the attorney's fault. It's the buyer's fault, and your fault. Everyone should have been on his attorney every few weeks and then every few days to be certain this was going to close on time.

Last time one of my children purchased a home I had them e-mailing the attorney with all kinds of questions and requesting updates. He told him, "Tell your mom I've got this". He knew where the questions were coming from !! --72.70.xxx.xx




moral & ethical question (by 6x6 [TN]) Posted on: Apr 30, 2021 10:27 AM
Message:

I like Richards reply pretty well. --73.120.xx.xxx




moral & ethical question (by tryan [MA]) Posted on: Apr 30, 2021 3:22 PM
Message:

This is a big deal ... play like the big-boys. The BOA foreclosure I bought had a .5% DAILY penalty for closing delays. Not sure how you add that after signing wo it. --71.241.xxx.xxx




moral & ethical question (by TxlordTx [TX]) Posted on: Apr 30, 2021 11:33 PM
Message:

Know when to run and when to hold... It seems you really want to keep this property... Then you will find a way to do it... Also bidens capital gains tax needs to be thought about if you decide to sell it later

--72.180.xxx.xxx




moral & ethical question (by Johnny B. [MA]) Posted on: Apr 30, 2021 11:59 PM
Message:

How much will you clear of the $12M? If itís substantial Iíd say who cares about another property. Go sit on a beach somewhere. --73.186.xxx.xxx




moral & ethical question (by Pmh [TX]) Posted on: May 5, 2021 5:31 PM
Message:

no ethical requirement to agree to extension. they could not perform per agreement. --72.180.xx.xxx



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