Seller Can't Sell

[gmtwwhite]

What is the name of your state?Massachusetts

I was trying to sell my house and have accepted an offer. The inspection is today.

When I called my mortgage company to get a payoff amount, I found out that I have a prepayment penalty that the proceeds from the sale will not cover and I can not afford to pay.

Fortunately, I have not yet signed the P&S agreement.

How can I back out of the deal?

[HomeGuru]

Originally Posted by gmtwwhite

What is the name of your state?Massachusetts

I was trying to sell my house and have accepted an offer. The inspection is today.

When I called my mortgage company to get a payoff amount, I found out that I have a prepayment penalty that the proceeds from the sale will not cover and I can not afford to pay.

Fortunately, I have not yet signed the P&S agreement.

How can I back out of the deal?

**A: if there is no written agreement to sell ie. the P&S contract, then there is no enforceable contract. Per the statutes of frauds, in general all contracts involving the sale or lease of real estate must be in writing to be enforceable.

[gmtwwhite]

Originally Posted by HomeGuru

**A: if there is no written agreement to sell ie. the P&S contract, then there is no enforceable contract. Per the statutes of frauds, in general all contracts involving the sale or lease of real estate must be in writing to be enforceable.

Thanks for the quick response!

There is a written and signed offer, but no signed P&S contract. Can they not enforce the offer as a contract?

[HomeGuru]

Originally Posted by gmtwwhite

Thanks for the quick response!

There is a written and signed offer, but no signed P&S contract. Can they not enforce the offer as a contract?

**A: what? confusing. Hire your own attorney.

[gmtwwhite]

Originally Posted by HomeGuru

**A: what? confusing. Hire your own attorney.

My lawyers on it now, but to clarify a bit for any readers...

The offer is a written document, signed by both parties. The P&S is a seperate written document, not signed by anyone.

Thanks anyway.

[HomeGuru]

Originally Posted by gmtwwhite

My lawyers on it now, but to clarify a bit for any readers...

The offer is a written document, signed by both parties. The P&S is a seperate written document, not signed by anyone.

Thanks anyway.

**A: now I am even more confused. Explain what the P&S stands for. Is it not the Purchase and Sales agreement that is signed by both the Seller and Buyer?

[gmtwwhite]

The Purchase and Sales Agreement must be signed by both parties, but mine had not been signed at that point yet.

Anyway it worked out ok.

The closing was originally set for Feb 28, and we finally closed last week after many delays by the buyer.

My lawyer got the finance company penalties reduced and got the buyers to agree to a per diem to cover our mortgage and other costs after they delayed the closing several times.

Take care.