Default clause

What is the name of your state? Missouri

My husband and I signed a contract 8 days ago to purchase another home owner financed. The seller agreed to the terms and signed ALL the paperwork. He told us he did not require a credit check and we told him up front we had bad credit. He said he would not do a credit check. Now he calls and says he did run a credit check after he agreed not to and that he wants 1/2 of the total house price in order to finance. Since we cannot afford 1/2 down he wants us to sign a release. Can he do that? He agreed to the orginal terms and I have it in writting. There is also a default clause stating that if either seller/buyer default then the one in default pays the other party 10% of the total listing price.
Question 1:
Can he changes terms on the financing after we have already agreed to and signed the orginal terms?
Question 2:
Can we hold him to the default clause of damages of 10%?
Question 3:
Can we make him hold to the orginal terms?
Any advice would be great?

Can he changes terms on the financing after we have already agreed to and signed the orginal terms?

Based solely on what you posted and contract law, no, a party cannot unilaterally change a contract.

Can we hold him to the default clause of damages of 10%?

Again, based solely on what you posted and contract law, yes, if it is a part of the contract that both parties signed.

Can we make him hold to the orginal terms?

Yes, unless there are other 'escape' clauses that you have not told us about.

The best advice I can give is to take your contract to a real estate attorney and let them read it so that they can give you a more informed opinion based on the facts.

[nextwife]

The issue may not technically be "credit" but Title. If the title search showed a series of judgements or tax liens that could attach to your owners interest upon buying, he is within his rights. As most standard language in purchase contracts do provide for title clearance, it is likely he could be legally within his rights to revisit the agreement if unknown title issues were discovered that may need to be cleared.

Do you have knowledge of any judgements or liens? I am not asking about mere credit scars, such as late pays.

[HomeGuru]

Originally posted by biz_e_mom
What is the name of your state? Missouri

My husband and I signed a contract 8 days ago to purchase another home owner financed. The seller agreed to the terms and signed ALL the paperwork. He told us he did not require a credit check and we told him up front we had bad credit. He said he would not do a credit check. Now he calls and says he did run a credit check after he agreed not to and that he wants 1/2 of the total house price in order to finance. Since we cannot afford 1/2 down he wants us to sign a release. Can he do that? He agreed to the orginal terms and I have it in writting. There is also a default clause stating that if either seller/buyer default then the one in default pays the other party 10% of the total listing price.
Question 1:
Can he changes terms on the financing after we have already agreed to and signed the orginal terms?
Question 2:
Can we hold him to the default clause of damages of 10%?
Question 3:
Can we make him hold to the orginal terms?
Any advice would be great?

**A: please have an attorney review your contract. And be prepared for him/her to be amused.

I guess you didn't hear my knowing grin did you HG???

[HomeGuru]

Not only did I hear it, I felt it.