Contract depended on Close of Probate

[appreciatehelp]

What is the name of your state (only U.S. law)? Texas

After my mom passed, I entered into a contract to sell her house. The contract states the closing of the sale will be on or before 2 weeks after probate. I sent the Letters Testamentary with the contract to the buyer's agent (I don't have an agent due to my mom having so much debt). Apparently, they didn't realize this meant the probate was done and sat on it for two weeks. It wasn't until I inquired about the closing date that the title company started the paperwork (on the 15th day after I e-mailed the contract to the agent). In the meantime, I've had about four people extremely interested in the house even though it needs extensive cosmetic work inside. I'm now thinking I'm not asking enough and would like to know if I'm free of the contract so I can open it up for bids. Doesn't waiting more than two weeks after probate make the contract invalid?What is the name of your state (only U.S. law)?

[justalayman]

what does the contract say to this? Does it allow for a voiding of the contract if the closing is not within the stated time period?

from what you have written, you must realize you were misleading by stating closing would be within 2 weeks of the closing of probate if probate had already been closed. Closing withing 2 weeks of signing a contract is not realistic as well.

and how could probate be closed if the ownership of the house had not been transferred?

I would suggest that if they buyer wanted to argue this legally, they may very well prevail due to your ambiguous and misleading statements.

[nextwife]

The seller (or their Realtor) needs to notify the title company when they are ready to proceed to closing. If you failed to have the closing prepared, you cannot penalize the buyer for that.

[appreciatehelp]

I thought I posted a reply yesterday, but apparently it didn't come through. The contract states if the buyer fails to comply with this contract, buyer will be in default, and the seller may a. enforce specific performance, seek other relief prov. by law or b. terminate this contract and receive the earnest money. I had no intention of taking the earnest money.

I just wanted to make it clear that I didn't submit the contract. The seller used a real estate agent, I didn't. It was the buyer's agent who submitted the contract to me and it's the buyer's title company. The buyer's agent put the part in the contract about the close date being 2 weeks after probate. I had thought it would take a couple of months, but my mom lives in a small county, and probate came through in a few weeks (after I had sent the initial contract back with a few changes). When the buyer's agent sent it back with the buyer's initials, I had just received the Letters Testamentary and sent that back to the buyer's agent with the signed contract. It was the buyer's agent who didn't realize that the Letters Testamentary cleared me to sell the house and sat on it for two weeks before sending it to the buyer's title company. I never had any intention of being misleading. It was after I sent it back and got still another call of someone interested in the house that I realized I had probably priced the house too low. I also realize it's my own ignorance in pricing the house too low even though I had received some friendly advice about the pricing from an agent who was a friend of a friend.

[justalayman]

Personally, I wouldn't think so much about this if you didn't keep mentioning how you priced the house too low. It appears you are simply trying to get out of the contract because you have a better offer.

That being aside, how did you close probate without changing title to the home, especially if you intend on selling it? The house (the value) is part of the estate. The money from the sale of the house must go towards debts, if any, which you said there was and they were considerable.

I sent the Letters Testamentary with the contract to the buyer's agent (I don't have an agent due to my mom having so much debt). Apparently, they didn't realize this meant the probate was done and sat on it for two weeks

.

letters testamentary do not mean probate has closed. That is one of the first steps in administering an estate.

It was the buyer's agent who didn't realize that the Letters Testamentary cleared me to sell the house and sat on it for two weeks before sending it to the buyer's title company.

Right. It gives you the right but that does not mean probate is closed at that point. Are you saying you got the letters AND closed in 1 day? Not a chance.

Additionally, you indicate how much debt mom had. How did you administer the debts without the cash from the sale of the house? in a day?

I have serious doubts that you have finished and closed probate. If you have and you think you can get out of the contract, go for it but I suspect you are not where you think you are. Attempting to void the contract can allow the buyer to sue you for performance and tie up the sale of the house until it has been through court if they believe, and can convince a judge, you are wrong.

at best, you are confusing "closing" of probate with receiving letters testamentary OR, at worst, you are simply trying to get a better price from the house because you messed up and underpriced the house.

[nextwife]

Originally Posted by appreciatehelp

What is the name of your state (only U.S. law)? Texas

After my mom passed, I entered into a contract to sell her house. The contract states the closing of the sale will be on or before 2 weeks after probate. I sent the Letters Testamentary with the contract to the buyer's agent (I don't have an agent due to my mom having so much debt). Apparently, they didn't realize this meant the probate was done and sat on it for two weeks. It wasn't until I inquired about the closing date that the title company started the paperwork (on the 15th day after I e-mailed the contract to the agent). In the meantime, I've had about four people extremely interested in the house even though it needs extensive cosmetic work inside. I'm now thinking I'm not asking enough and would like to know if I'm free of the contract so I can open it up for bids. Doesn't waiting more than two weeks after probate make the contract invalid?What is the name of your state (only U.S. law)?

The contract states "on or before 2 weeks after probate.". That sure does not sound like it says "two weeks after probate is begun" or "two weeks after PR appointment". When did YOU formally notify the buyer that the probate was completed and the estate ready to close in two weeks?

[HomeGuru]

Originally Posted by nextwife

The contract states "on or before 2 weeks after probate.". That sure does not sound like it says "two weeks after probate is begun" or "two weeks after PR appointment". When did YOU formally notify the buyer that the probate was completed and the estate ready to close in two weeks?

**A: good question.

[latigo]

If the real estate sale purchase agreement is otherwise binding upon the estate, it cannot be avoided because of some ambiguity or disagreement as to the agreed date to consummate the transaction.

If the time of closing is not clearly defined, then closing must occur with a reasonable time.

So I suggest that you stop looking for non-existent worm holes. Plus avoid future positions of a fiduciary nature, which you are not equipped to handle.

What you may wish to consider (if there are other heirs) is your personal liability to those people for misfeasance in carrying out your fiduciary responsibilities as PR by disposing of an asset of the estate below its fair market value.

And you (“I”) didn’t agree to sell the home. The estate agreed to sell the home.

You’ve never owned the home.