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how to back out of signed P&S???

post #1 of 18
7/10/10 at 5:42pm
Thread Starter 
Already having buyers remorse, signed a P&S on a house. There is no financing clause so that is an out option. However, the inspection came back w/ several things that need to be fixed, I sent them a list w/ what I wanted, they agreed to fix all but one. A garage sensor that cannot be fixed due to location problems. The inspector listed this as a "must fix dangerous situation" is this good enough to back out?

Also still waiting on the water report, is any little blip, i.e., slightly elevated arscenic levels, a good enough cause to back out of the p&s and get my deposit back?

And Radon is at around 3pCi/L which is in the area where EPA suggests fixing, if they wont put in a radon system can i back out?

From the research I have done, as long as there are contigencies in the p&s the buyer can pretty much back out for any little thing, i.e., the fact the garage door sensor cant be moved to a safe level etc.
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post #2 of 18
7/10/10 at 5:58pm
Those are legit reasons to back out.
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post #3 of 18
7/10/10 at 5:59pm
What state are you in? Different states (at least the ones I've have lived in) have different laws regarding real estate transactions.
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post #4 of 18
7/10/10 at 6:09pm
And it all depends upon the contingency language included in the initial contract. That will spell out precisely how each party shall and may procede. There is in all likelihood a timeframe within which the post-inspection negotiations need to be concluded, as well. Some contingency clauses automatically sunset if agreement is not reached, meaning they have no effect. Be proactive here.
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post #5 of 18
7/10/10 at 6:37pm
Thread Starter 
It is in MA., which generally tends to base their laws much more buy/consumer friendly. I dont have the p&s in front of me atm but I know there was some language in their that buyer has right to back out subject to inspection repairs, radon testing, and water test. I just wasnt sure how "serious" the problems relating to those areas have to be.... I would assume really anything is fine, I could prob. be a complete douche and say their attempt at rectifying the inspection problems arent up to "my" satisfactory standards and get out that way too.

Regardless the water report comes in on Mon. and I am sure there will be some elevated levels of something on there, there always is w/ a private well for the most part.
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post #6 of 18
7/10/10 at 6:44pm
I'm not sure how it works in MA, but in CA, you can back out at any time up until the inspection phase is over and the escrow period is finished. It's totally legit to back out during inspections if the inspections reveal shit you don't like and the seller isn't willing to reach an agreement to your satisfaction about who will pay what for what.

I've sold a house before, and the process ultimately involved two buyers. The first sale fell through when the buyer made unreasonable demands during the inspection phase (we're talking demanding tens of thousands of dollars out of my pocket for what were essentially upgrades and not actual repairs; I told him to take a hike). The second sale went through when we agreed to a reasonable inspection settlement.

It's not over till the fat lady sings, i.e., till inspection is over and both parties agree to the bill of repairs.
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post #7 of 18
7/10/10 at 6:52pm
I'm also in MA. I'd check out this blog [http://www.massrealestatelawblog.com...ale-agreement/
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post #8 of 18
7/10/10 at 7:15pm
I know here in MN you can back out for any reason after the inspection during the inspection contingency. You don't have to give a reason either.
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post #9 of 18
7/10/10 at 9:27pm
Quote:
Originally Posted by brokencycle View Post
I know here in MN you can back out for any reason after the inspection during the inspection contingency. You don't have to give a reason either.

Pretty sure this is how it works in CA, too, and in most places (I assume). You don't even have to specify a valid reason, though it's usually a disagreement over who will pay for what. But it's not unheard of to back out at this stage just because the buyer got cold feet or found a better option at the last minute.
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post #10 of 18
7/12/10 at 4:33pm
Thread Starter 
UPDATE:

so I was at the end of the road as far as finding a way out and my attorney couldnt figure out anything, I was actually considering giving up the $27k liquidated damages for breach, but then out of no where, the sellers agent and lawyer contact me saying the sellers are refusing to fix a jet on the tub (which was stipulated to be done on the last P&S following the inspection) and they also changed the wording in the water test contingency.

Their lawyer wrote up a P&S w/ the changes highlighted and sent it to my agent. Now if I am not mistaken, via the good old mirror rule, this is in fact a "new" contract since changes have been made, and as such I have the right to walk now???

This is some of the best news I have had in a while if that is the case. Of course my lawyer is at a charity golf tourney until tonight so I wont get any answeers from him until then, but I think this all means I can walk!
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post #11 of 18
7/12/10 at 4:39pm
Quote:
Originally Posted by pg600rr View Post
Their lawyer wrote up a P&S w/ the changes highlighted and sent it to my agent. Now if I am not mistaken, via the good old mirror rule, this is in fact a "new" contract since changes have been made, and as such I have the right to walk now???
In Michigan, every change to a sales agreement equates to a new contract that is once again subject to the approval of all parties. In the situation you described above, you would have the right to refuse it and be done with the situation. I cannot imagine that things are handled all that much differently in the People's Republic of Massachusetts.
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post #12 of 18
7/14/10 at 12:25pm
Quote:
Originally Posted by Michigan Planner View Post
In Michigan, every change to a sales agreement equates to a new contract that is once again subject to the approval of all parties. In the situation you described above, you would have the right to refuse it and be done with the situation. I cannot imagine that things are handled all that much differently in the People's Republic of Massachusetts.

Mass probably has some strange rules on the books. Its a commonwealth after all. In my experience, they don't have to be substantial repairs at all. I had to let a guy out because a faucet was dripping.

Why are you using a lawyer and not a realtor? Is this an investment property?
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post #13 of 18
7/14/10 at 12:46pm
Quote:
Originally Posted by jgold47 View Post
Why are you using a lawyer and not a realtor? Is this an investment property?

When shit starts getting real, even the most experienced and sage real estate agent should recommend an attorney's opinion be sought.
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post #14 of 18
7/14/10 at 1:27pm
Thread Starter 
Quote:
Originally Posted by jgold47 View Post
Mass probably has some strange rules on the books. Its a commonwealth after all. In my experience, they don't have to be substantial repairs at all. I had to let a guy out because a faucet was dripping.

Why are you using a lawyer and not a realtor? Is this an investment property?

He was doing the closing, plus it is more of a contracts law issue than general R/E knowledge, didnt want to take any chances especially when my $30k deposit is up for grabs.
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post #15 of 18
7/14/10 at 1:57pm
Quote:
Originally Posted by Dakota rube View Post
When shit starts getting real, even the most experienced and sage real estate agent should recommend an attorney's opinion be sought.

Quote:
Originally Posted by pg600rr View Post
He was doing the closing, plus it is more of a contracts law issue than general R/E knowledge, didnt want to take any chances especially when my $30k deposit is up for grabs.

yeah yeah. Its just rarer here to have a lawyer on residential transaction unless its really goofy. Most issues get worked out by the realtors. Not saying it doesn't happen, just not generally done.
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