I recently accepted an offer to sell our home, but now the buyer can't come up with the funds needed for the purchase. The contract has expired and the terms of the contract were not fulfilled but the buyer will not sign a release form. Other buyers will not make offers until the release is signed. What should I do?
1 Answer from Attorneys
Dear Seller: You have few options, depending upon the specific wording of the written,signed Offer and Acceptance document, which should provide for such events. It seems pointless to sue for fraudulent inducement, misrepresentation, breach of contract and demand for specific performance, since the Buyer could not obtain financing, which provision is probably stated in your Agreement as a condition to the Offer.
You really don't need a release, since the contract period (for purchase and closing) has already expired. Potential buyers, and their realtors should have no hesitation to make a written Offer for your Acceptance, as though the first Buyer never existed. Just keep the original documents, for your records, in the event Buyer No. 1 suddenly reappears, but has no valid contract to purchase, or to assert any expired contract rights.
J. Norman Stark, Attorney
(216) 531-5310 Ext. 22. .