I signed a contract to purchase this property with nearly 20% equity (price 140k; value 180k). The property has a listing agent while I represent myself (I am NOT an agent or lawyer).
The closing is scheduled for June 15th. I had asked for a closing date extension till the 25th. Suddenly, I get a fax from the seller’s agent stating that they want to terminate the contract and refund my earnest money. Additionally, they want me to sign something to the effect of “… buyer’s unrestricted right to terminate this contract…”
I did not pay any option money and do not have an unrestricted right to terminate the contract for any period of time. Anyway, I intend to close and buy this property. My feeling is that the sellers are having second thoughts about the price (maybe they got some higher backup offers) and want out.
Their excuse for the termination is this: The wife did not sign the contract! I go back and look at my copy of the contract and she has initialed all the pages along with the husband. However, on the last page of the standard TREC contract, only the husband signed!
However, both of them did sign the addenda - Information about brokerage services and Third party financing addendum. So, the dilemma is whether I can hold them contractually obligated to sell. I am also trying to get answers from my lawyer, but just want to see if anybody has any opinions.
By the way, I live and invest in Austin, Texas.
The choice is: do I cut and run and get my earnest money back or do I risk losing my earnest money if they don’t grant me a closing date extension and I am unable to close.