Some buyer's agents do not know that when a buyer and a seller sign a purchase agreement for a short sale listing, they have entered into a binding contract to buy a home. I don't really know why agents often treat a short sale like the red-haired stepchild, but it's a real transaction just like any other real estate transaction.
This means if the buyer elects to cancel, a buyer can do so. The RPA contract put out by C.A.R. is written in favor of buyers. Probably because buyers sue more often than sellers. Sellers are typically happier after closing than buyers. It's rare that a seller feels that he or she got the raw end of the stick. But buyers? Whole 'nother story.
Some people believe that the only time a buyer cannot cancel is after all contingencies are removed, and that's a big fat lie. They can still cancel. Buyers can always cancel. But in that event, they could get sued because they don't have a contractual right to cancel, although that's where they will argue.
If a seller does not sign a buyer's cancellation, simply out of spite, a seller can be facing a $1,000 fine. The seller has no right to ignore the cancellation, if the buyer is within the time period to cancel. But that's after 30 days. So, you can't really force sellers to immediately sign a cancellation unless you're standing over them with a sledge hammer, and no agent has the inclination to do that.
But what happens when it's the other way around and the sellers want to dump a buyer? How is that handled? Before my sellers cancel buyers from a short sale transaction, we give them a chance. It's the fair and equitable thing to do, even if they are not fair and equitable to us. Besides, contracts stipulate. We send them a Notice to Perform. We spell out what we want them to do, and if they don't do it, we can unilaterally cancel them.
However, if you as a buyer wants to cancel, you need to sign a cancellation of contract. Not a withdrawal of offer and not an addendum. Buyers sign the top and bottom portion and date it, along with escrow information to release the earnest money deposit. Buyers also need to state a reason for the cancellation. When buyers sign a short sale addendum, agreeing to wait for short sale approval, the buyer is supposed to wait during that period of time. But bottom line, if a buyer doesn't want to buy, nobody can make 'em.
For more questions about a Sacramento short sale, call your Sacramento short sale agent, Elizabeth Weintraub, at 916 233 6759.
---
Certified HAFA Specialist
My Sacramento Real Estate Listings
Elizabeth Weintraub is an author, home buying columnist for The New York Times-owned About.com, a Land Park resident, and a Land Park real estate agent who specializes in older, classic homes in Land Park, Curtis Park, Midtown and East Sacramento. Weintraub is also a Sacramento Short Sale agent who lists and successfully sells short sales throughout the four-county Sacramento area. Call Elizabeth Weintraub at 916.233.6759. Put 35 years of real estate experience to work for you. Broker-Associate at Lyon Real Estate. DRE License # 00697006.
The Short Sale Savior, by Elizabeth Weintraub, available at Amazon.com.
Lyon Real Estate is not associated with the government, and our service is not approved by the government or your lender. Even if you accept this offer and use our service, your lender may not agree to change your loan.
Photo: Unless otherwise noted in this blog, the photo is copyrighted by Big Stock Photo and used with permission.
The views expressed herein are Weintraub's personal views and do not reflect the views of Lyon Real Estate.
Disclaimer: If this post contains a listing, information is deemed reliable as of the date it was written. After that date, the listing may be sold, listed by another brokerage, canceled, pending or taken temporarily off the market, and the price could change without notice. It could blow up, explode or vanish. To find out the present status of any listing, please go to elizabethweintraub.com.
