Getting out of the agreement

[minimyme]

What is the name of your state? NJ

I signed the contract for purchase of a property. During the home inspection, there were many issues found which are major in the nature. I want to get out of this deal as I'm not comfortable buying a house which is just few months old has issues with the foundation, roof and many other things as well.

The seller is agreeing to fix all the problems but I'm not comfortable with the quality of the construction. What are my options here?

Agreement has the standard clauses for NJ state for the inspection contigency.

 

[BradleyS]

Real Estate Broker Opinion from Kansas:

What does the contract read about your inspection?

Tell your RE Agent, hopefully you have one, to talk with the seller explaining how uncomfortable you are about the condition of the dwelling. If the seller is not trying to get over on you, they will usually have no problem in cancelling the contract.

Usually, the inspection clause gives the buyer the right to cancel or void the contract due to the problems found during the inspection, that the buyer and seller cannot come to any agreement on how to resolve them, but I state again, "read the contract."

 

[Brownfieldman]

As Bradley said, the contract will control. There is really no 'standard NJ clause' for the inspection. Some state that the Buyer will conduct the inspection, identify the deficiencies, and the Seller has the option to either correct or advise the buyer that it will not. Since the option is with the Seller, if they elect to 'correct' the buyer cannot get out of the agreement (unless the Seller fails to correct)

Other clauses provide that for minor defeciencies the Seller may fix, but for defeciencies over a certain dollar amount either party may cancel the agreement.

Finally, some inspection clauses provide a 'free look' whereby the Buyer does the inspection and can cancel for any reason within the inspection period.

Unlike what Bradley said, I don't think the RE Broker is your best bet for assisting you in getting out of the contract. Yes, I think it would be your attorney. Presumably, this person assisted you in negotiating the contract, and can now assist you as to what your legal rights are, under the inspection clause, as well as under any other provisions in the agreement.

My suggestion. . . read the contract and talk to your attorney.

 

[minimyme]

Thanks for the reply.

Yes we this clause in the agreement "the Buyer will conduct the inspection, identify the deficiencies, and the Seller has the option to either correct or advise the buyer that it will not. Since the option is with the Seller, if they elect to 'correct' the buyer cannot get out of the agreement (unless the Seller fails to correct)"

I already spoke to my attorney ,he told we have to give seller time to correct the defects,but i am not comfortable at all in buying now due to foundation crack and penetration of water in the walls.THis property is only 3 weeks old.

we have 7 days period for seller to accept to rectify the defects.already 2 days gone ,no answer from seller.

I got reference of current Attorney from my realtor and feeling like i just got screwed up as i my attorney is not even returning my calls after this inspection report.I have to call several times in a day to talk him for once.My realtor told me if you come out of deal ,you have to pay heavy.

My only option now left is come out of deal by getting mortgage denial letter as my purchase is contigent upon morgage.
How do i get mortgage denial letter ,if i am already approved but my mortgage company didn't submitted commitment .
My realtor is also pushing me for appraisal done ,but i want to wait till the seller acceptance to rectify defect.Do i have appraisal donebefore that .If i dont get the appraisal done ,may be i get the denial letter.
what other options left ,for getting denial letter.?


All help is apprecaiated
Thanks

 

[Bigfoot]

To Brownfieldman: The real estate agent or broker negotiates an Offer to Purchase. An attorney is brought into the process generally for closing purposes. The Offer states what can/can't be done and under what circumstances the Buyer's earnest money deposit can be returned.

 

[minimyme]

Update

What is the name of your state? NJ

Hi,

We signed the contract for purchase of a home. During the attorney review, our attorney added few clauses as an adendum. One of the points that he put was "The contract is contingent upon the buyer's review and acceptance of any restrictions in the use of property contained in the by laws or conditions, convenants & restrictions of the association documents which reviewd and determination must be completed within 3 business days of receipt of said documents or said contingency shall be deemed waived."

We reviewed the by laws and had objection on the condition where I can't use my property for business if I have employees or customers. I asked my attorney to cancel and void the contract based on this ristriction.

What are the winning odds if seller sue's us or if they have any grounds for persuing any legal action against us?

 

[HomeGuru]

What is the name of your state? NJ

Hi,

We signed the contract for purchase of a home. During the attorney review, our attorney added few clauses as an adendum. One of the points that he put was "The contract is contingent upon the buyer's review and acceptance of any restrictions in the use of property contained in the by laws or conditions, convenants & restrictions of the association documents which reviewd and determination must be completed within 3 business days of receipt of said documents or said contingency shall be deemed waived."

We reviewed the by laws and had objection on the condition where I can't use my property for business if I have employees or customers. I asked my attorney to cancel and void the contract based on this ristriction.

What are the winning odds if seller sue's us or if they have any grounds for persuing any legal action against us?

**A: did you send written notice to the Seller of non acceptance of the CC&R's within the contracted 3 business days contingency?

 

[minimyme]

Yes. It was sent the very next day after receiving the by laws.

 

[HomeGuru]

Yes. It was sent the very next day after receiving the by laws.

**A: then per the contract contingency, you terminated the contract.

 

[minimyme]

What are the winning odds of seller if he sue's us? Do they have any grounds for persuing any legal action against us?

 

[HomeGuru]

What are the winning odds of seller if he sue's us?

**A: based on the information you posted, zero.

*********
Do they have any grounds for persuing any legal action against us?

**A: state what grounds you think they have on specifically what cause of action.

 

[minimyme]

May be liqidation damages or something along the lines that house was off of the market for x days so they lost something etc...

 

[HomeGuru]

May be liqidation damages or something along the lines that house was off of the market for x days so they lost something etc...

**A: if you terminated the contract within the contingency period ( as you have done), then the contract is null and void. There are no damages. And you did not tell them to take the house off the market. So if they did on account of your offer, then that's their own fault.

 

[minimyme]

Dear HomeGuru,
I appreciated your opinion ,time and insight into this matter.
Thanks

 

[HomeGuru]

Dear HomeGuru,
I appreciated your opinion ,time and insight into this matter.
Thanks

**A: thanks and good luck on the next one.