Legal Question in Real Estate Law in California

I am a buyer and am in contract for a home which the appraisal came in 35k less than purchase offer. The seller will not negotiate anything under 425k. The comps do not support the value and asking price. The seller wants us to do another appraisal from another lender and to pay half. We first said ok to half thinking they will negotiate up to 415k if it comes in at that. Though they said if it comes in less they will not sell for less than 425k and remove all credits we were given. We can't afford that at this time but can afford 415k with no credits. We asked them to pay the entire appraisal fee since they feel value is there. They sent us a cancelation after putting it back on market on mls. Our concern is the appraisal will come in low with next buyer as well and they will agree once they realize but we will be the ones not given the fair chance and take a big loss. Can we sue them if they negotiate less than what they offered us down the road in the same year?


Asked on 4/04/16, 10:30 am

1 Answer from Attorneys

No. You signed a contract at a given price. It had an appraisal contingency that allows you to cancel if you don't want to go forward at the agreed price, or you can remove the contingency and pay full price. If you fail to cancel or go forward they are legally entitled to cancel. There is absolutely zero obligation on the seller's part to renegotiate the price, or to do anything other than cancel if you refuse to go forward or cancel yourself if you tried to renegotiate and can't reach a new agreed price. You have no right to a deal you didn't make, and therefor no right to sue for it.

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Answered on 4/04/16, 3:10 pm


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