Buyer: Backing out of a deal, paying for Termite ?

[DavidSD]

Hi all,

I’m in desperate need of an advice. I have to back out of a deal due to unable to secure a loan. I have not signed the Financial Contingency yet. I negotiate with the seller that I’m willing to pay half of the termite cost. They want me to pay full amount. My question is if I don’t agree and this could drag on, can they sell their house to another party until settle the issue with me? My agent seems to take this personally and doesn’t want to work with me to resolve the issue.

thanks in advance.

[SK in CV]

You have a contract. Do what it says. It probably doesn’t address the cost of the termite report specifically, but it probably does have a drop dead date, after which the seller is entitled to keep earnest money. Legally, it doesn’t matter what you want or what the seller wants. What matters is what’s in the contract.

[ltsddd]

Are you talking about the cost of a termite report (which is about $100)? Or the cost of remedying termite issues?

If it’s the cost of the report just pay for it and move on.

[DavidSD]

I’m sorry, this is termite fumigation no repair necessary, it’s around $2400.

@SK in CV: but I haven’t signed the Financial Contingency yet. You are right, the contract doesn’t spell out exactly which fee & cost.

[Coronita]

[quote=DavidSD]I’m sorry, this is termite fumigation no repair necessary, it’s around $2400.

@SK in CV: but I haven’t signed the Financial Contingency yet. You are right, the contract doesn’t spell out exactly which fee & cost.[/quote]

If you haven’t signed the financial contingency, and if you can’t qualify for a loan, then what is the issue again backing out?

[SK in CV]

[quote=DavidSD]I’m sorry, this is termite fumigation no repair necessary, it’s around $2400.

@SK in CV: but I haven’t signed the Financial Contingency yet. You are right, the contract doesn’t spell out exactly which fee & cost.[/quote]

Ridiculous for seller to ask you to pay for it. You get no benefit. I thought it was just the report he wanted you to pay for. You’re under no obligation to pay for any of it. He’s under no obligation to do the remediation. Take your deposit and walk away.

[DavidSD]

thank you all. So I’m in no obligation to pay for the fumigation cost. My dilemma right now is my agent; he doesn’t want to work to resolve this; he told me to pay the whole $2400. I understand that there is no money in it for him. Is there any way I can force the seller to release the escrow so I can get my earnest money back? I thought it would be in their interest to release the escrow so they sell their house to other party, am I wrong?

[Coronita]

[quote=DavidSD]thank you all. So I’m in no obligation to pay for the fumigation cost. My dilemma right now is my agent; he doesn’t want to work to resolve this; he told me to pay the whole $2400. I understand that there is no money in it for him. Is there any way I can force the seller to release the escrow so I can get my earnest money back? I thought it would be in their interest to release the escrow so they sell their house to other party, am I wrong?[/quote]

Just tell him/them you weren’t able to qualify for the loan, and you want your full escrow amount back. Nowhere were you obligated to pay for the fumigation cost, and if the seller already did it, too darn bad. If your agent is reputable, he’ll oblige. If he gives you a hard time, insist on it…And then when you finally get your deposit back, find another agent.

Personally, if I were in the seller’s shoes, I would have just credited the buyer the $2400 upon close of escrow or done it after all the contingencies were removed. But that’s his/their problem, not yours.

[XBoxBoy]

[quote=DavidSD]My dilemma right now is my agent; he doesn’t want to work to resolve this; he told me to pay the whole $2400.[/quote]

And by the way… in case it’s not obvious, get a new agent if you plan to continue looking for a house. Any agent who doesn’t want to work to resolve this is not doing his/her job.

[joec]

Since agents work in the public space, is it a bad thing to post who he/she is? It’s not slander if what you state is true and people here would avoid said agent in the future.

[moneymaker]

Was it you didn’t qualify or you just didn’t get the rate you wanted? If you didn’t qualify then shame on you and the agent for looking and offering on a house you couldn’t afford, if this is your first house then I would put more blame on the agent for not pre-qualifying you first. I agree that you should not pay for the termite however, we got a free termite on our place when the previous buyer backed out, I have no idea who actually paid for it however.

[urbanrealtor]

Honestly this sounds kinda goofy… possibly fishy.
Please message me here or by email at urbanrealtor at gmail.
You may be dealing with dishonest and/or opportunistic people.

[Author]

Posts