When a Home Seller Cancels the Contract for Non-Performance
When a home seller cancels the contract for non-performance, she must have a specific action that the buyer failed to complete. In this case, it is the buyer’s good faith deposit. The contract specifically states the buyer’s funds must be deposited into the title company within 3 days after acceptance of the buyer’s offer.
In this particular escrow, there have been many conversations about the deposit and several reasons why the funds have not been wired. A car wreck, an illness and then a tragedy in the family with their child. Another reason for the delay just happened this week. The funds were somehow wired to the wrong title company. The seller’s agent has been very patient. Everyone has a line in the sand and the seller and her Realtor have reached that point with the buyer. The buyer has truly tried everything within her means but has been unable to perform.
As we are 12 days into this and no deposit has been made, the Notice to Buyer to Perform was received yesterday. The notice specifically states: “If the buyer does not remove all contingencies within two days from the day after the delivery of the notice, the seller can cancel the agreement.” As the notice was received yesterday, the buyers legally have until the day after tomorrow at 5:00 PM to deliver the earnest money deposit; if they do not, the seller simply cancels and sells to another buyer.
When a home seller cancels the contract for non-performance, this can be sad news for buyers. The buyers in this case are from out of state, so even further complications. This notice is important. The seller has lost valuable time on the market to sell the property as it has been in pending status. Pending sale in MLS detours other buyers from looking at the property.
When a home seller cancels the contract for non-performance, this is a last resort ditch effort. If a buyer wants to save this escrow from cancelling, they must go to the bank today. The seller’s agent needs confirmation the funds were wired and deposited with the title company.
If you are looking to buy a home, always make sure you have your deposit funds ready to go when you sign your purchase agreement. This will ensure that when a seller cancels the contract for non-performance, it will happen to someone else, but not you!
If you are thinking about selling a property, rest assured Weintraub & Wallace Realtors will always insist on a deposit check immediately on our listings. Call us today at RE/MAX Gold, 916-233-6759.
— JaCi Wallace