Seller wants to change the terms

[thelizzy]

What is the name of your state? PA

My fiance and I are in the process of buying our first home. We had the contracts signed with an ADDENDUM stating that the current owners would rent back from us until at least 9/15.
Today, we got a phone call from our realtor, saying that the current homeowners want to move out on 7/30, as opposed to the original date of "on or before 9/15" and they no longer need to rent back.

This puts my fiance and myself in a real financial bind, because we are both young and planning a wedding. Those six weeks are a good chunk of change for both of us, as pennies are tight.

My question: can they do this? They signed the addendum. We do not want to move into the house until 9/15 and the whole reason we were interested in this house was that it fell in line with the end of my fiance's lease, and with our financial plans. Our realtor knows this and this is why he offered us this house, because of the owners not wanting to move out till then. Obviously, that changed. Can the current homeowner force us into buying the house? We did sign the contract, but under different terms, i.e. the rent-back addendum.

I apologize if anything is spelled wrong or unclear. I'm very new at this and quite naive about the whole process. I just need an honest answer. Thanks in advance.

 

[JETX]

"can they do this?"
*** They can if you let them. If you would rather not allow them that change, simply tell them IN WRITING, that you have a signed contract and expect them to abide by it in full. Realize though.... that this could be a two way street if you end up needing some 'special courtesy' during this next few months.

"Can the current homeowner force us into buying the house?"
*** Yes. You are just as obligated to comply with the contract as they are.

 

[thelizzy]

Thank you for your quick response.

I personally refuse to sign anything that will allow them to negate the rent-back agreement. Since the house is going in BOTH my fiance's and my names, I'm hoping this is enough to change things.

Obviously, we are expected to abide by the contract we signed. But does that include this signed addendum? In my opinion, it does. But I am not a lawyer. That's why I'm asking you! The way I see it, since they are trying to change the terms, therefore, I am hoping we are under no further obligation to buy the house.

Again, thank you for your response in advance.

 

[d8ddysgirl]

"would rent back from us until at least 9/15."
"Today, we got a phone call from our realtor, saying that the current homeowners want to move out on 7/30, as opposed to the original date of "on or before 9/15"

I would need to see what EXACTLY the contract says. Because on or before is wide open and so is at least until 9/15.

Did you have an expected closing date?

 

[thelizzy]

Ooo, sorry. I messed up.

They agreed to rent back until AT LEAST 9/15, meaning, they would not move out before that date, and they had the option to stay as late as October 31.

The expected closing date was 7/30.

Thank you!

 

[JETX]

"I personally refuse to sign anything that will allow them to negate the rent-back agreement. Since the house is going in BOTH my fiance's and my names, I'm hoping this is enough to change things."
*** What difference does it matter as to who's names the house will be in?? This is a simple contract issue. Assuming that this is a valid contract, including the addendums (and signed by all parties), then all parties are obligated to meet the contract. If either party breaches, then the other party can sue for them damages caused by the breach. In this case.... and based solely on your post, it seems clear that the current owners are OBLIGATED (by contract) to pay rent until at least 9/15. As noted in my post, I would simply make sure they realize that they must pay.... whether they actually reside there or not. If they refuse, your only recourse is to either resolve the dispute.... or refuse to close on the scheduled date and consider taking legal action due to their breach.

"The way I see it, since they are trying to change the terms, therefore, I am hoping we are under no further obligation to buy the house."
*** Sorry, it doesn't work that way..... you cannot breach the agreement either. Their 'claim' is not a breach.
As I see it, your options are:
- To deny their request and force them to comply..... and close as scheduled, or
- To deny their request and force them to comply.... then when they don't close as required by the contract, consider litigation, or
- To negotiate some mutually satisfactory resolution to the problem.. and close as scheduled, or
- Negotiate a mutual termination of the contract and all parties move on.

Two final suggestions:
- If you do end up closing on the date scheduled, make sure that you get the rent payments ESCROWED before closing. Otherwise, the new 'tenants' will very likely fail to pay and force you to litigate, and
- If you do negotiate an early termination, get everything in writing!

 

[thelizzy]

**If either party breaches, then the other party can sue for them damages caused by the breach. In this case.... and based solely on your post, it seems clear that the current owners are OBLIGATED (by contract) to pay rent until at least 9/15. As noted in my post, I would simply make sure they realize that they must pay.... whether they actually reside there or not. If they refuse, your only recourse is to either resolve the dispute.... or refuse to close on the scheduled date and consider taking legal action due to their breach.

What would we sue them for, if they refuse to abide by the terms that the current contract state? What do you mean by damages? Do you mean financial compensation or just forcing them to rent back until at least 9/15?
Sorry for all my confusion. I just want to understand all this. Thank you again for your responses.

 

[JETX]

"What would we sue them for, if they refuse to abide by the terms that the current contract state?"
*** You could sue them for breach of contract and ask the courts to order them to comply. Of course, this would take a year or two for a case to be heard.

"What do you mean by damages? Do you mean financial compensation or just forcing them to rent back until at least 9/15?"
*** Depends on the exact breach. If they fail to close due to your not allowing them to waive the rent, then you can sue for specific performance. Do NOT close knowing that they are not going to pay, as that can be seen as accepting their 'modifications'.