Can buyer back out--low Appraisal with "other terms" verbiage

[whiteheadw]

Can seller back out--low Appraisal with "other terms" verbiage

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

In contract where we offered to pay 385,000. However, the property unexpectedly appraised low (361,000), but in "other terms", it states "Buyer will pay up 1000 over appraisal up to 385,000." Given this verbiage that exists in the contract that the buyer and seller legally agreed to, and given that the buyer and seller both have paid various fees associated with this contract (pest inspection, housing inspection, appraisal fees, etc.), can seller legally back out without providing remunerations for buyer expenses already incurred if the buyer wishes to execute the contract with 362,000 being the final selling price (361,000 appraisal + 1,000 per the terms agreed to in the "other terms" section of the contract).

My real-estate agent seems to think the seller can back out legally without having to compensate the buyer, but I fail to see how given the other terms.

 

[Just Blue]

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

In contract where we offered to pay 385,000. However, the property unexpectedly appraised low (361,000), but in "other terms", it states "Buyer will pay up 1000 over appraisal up to 385,000." Given this verbiage that exists in the contract that the buyer and seller legally agreed to, and given that the buyer and seller both have paid various fees associated with this contract (pest inspection, housing inspection, appraisal fees, etc.), can seller legally back out without providing remunerations for buyer expenses already incurred if the buyer wishes to execute the contract with 362,000 being the final selling price (361,000 appraisal + 1,000 per the terms agreed to in the "other terms" section of the contract).

My real-estate agent seems to think the seller can back out legally without having to compensate the buyer, but I fail to see how given the other terms.

I think if you can afford a 385 thousand dollar car then you should likely ask your attorney this question(s).

 

[HRZ]

I think there is some wacky wording in there ...and in part the parties are agreeing to the appraised price with a $385.000 ceiling ?? So if the appraisal was $284,000 the buyer would pay but 285,000....people are entitled to write unwise deals ...Me Id be reading the default language and calling my lawyer .

 

[adjusterjack]

My real-estate agent seems to think the seller can back out legally without having to compensate the buyer, but I fail to see how given the other terms.

Don't take legal advice from a realtor. They are clueless.

Hire yourself an attorney.

Or just let it go, remarket the house, and be more careful about the terms and conditions of the next purchase contract.

 

[Stephen1]

Don't take legal advice from a realtor. They are clueless.

Hire yourself an attorney.

Or just let it go, remarket the house, and be more careful about the terms and conditions of the next purchase contract.

I agree w/seeking an attorney, but regarding remarketing the house - I believe OP is buyer not seller.

I read this that buyer wants to now pay $362,000 and seller wants out. I'm hoping that there is something in the contract relating to compensation to buyer when seller wants out.

Personally, I have a pending offer on a house. If it is accepted and the appraisal comes in low then my contract gives both sides certain rights. Including the seller being able to walk away.