OH BOY!

[Mr. C]

Boy, do I have a problem. My girlfriend and I decided to purchase a home together. We found a home, negotiated price and came to terms. I put $2K of my savings in escrow. Our financing is approved. Approval was based on my income and the bulk of the money we have to put down was a gift from her mother. We completed the inspection. A couple of days ago, I came to realize that the decision to go into this partnership was a mistake. Through this realization I came to believe that there is no future for this relationship (I won't bore you with the details.) My agent tells me that we can still cancel the contract but that both of us have to sign a contract (I believe it is refusing the home based on the inspection.) She refuses to sign. Without my income, we won't qualify for the loan. She appears to be determined to go through with this even though I want out. So, my question is this: If she won't sign and I won't go through with the loan, what recourse does the seller have by law? My second quesion is: If it turns out to be better to follow through with the transaction, what rights do I have if I want out after we purchase the property? Can I require that she sell the house if we have 50/50 ownership. We live in Kansas. She cannot afford the house on her own. I have to make a decision today so any input would be greatly appreciated.

 

[HomeGuru]

<BLOCKQUOTE><font size="1" face="Verdana, Arial">quote:</font><HR>Originally posted by Mr. C:
Boy, do I have a problem. My girlfriend and I decided to purchase a home together. We found a home, negotiated price and came to terms. I put $2K of my savings in escrow. Our financing is approved. Approval was based on my income and the bulk of the money we have to put down was a gift from her mother. We completed the inspection. A couple of days ago, I came to realize that the decision to go into this partnership was a mistake. Through this realization I came to believe that there is no future for this relationship (I won't bore you with the details.) My agent tells me that we can still cancel the contract but that both of us have to sign a contract (I believe it is refusing the home based on the inspection.) She refuses to sign. Without my income, we won't qualify for the loan. She appears to be determined to go through with this even though I want out. So, my question is this: If she won't sign and I won't go through with the loan, what recourse does the seller have by law? My second quesion is: If it turns out to be better to follow through with the transaction, what rights do I have if I want out after we purchase the property? Can I require that she sell the house if we have 50/50 ownership. We live in Kansas. She cannot afford the house on her own. I have to make a decision today so any input would be greatly appreciated.<HR></BLOCKQUOTE>

Ok, here is what you do. Write a letter to your Realtor stating that you do not accept the condition of the home based on the results of the home inspection and therefore you are cancelling the transaction. Talk to the agent first to make sure you cite in the letter the correct reasons for cancellation based on the terms and conditions of the sales contract. The standard language may be that the sale is contingent upon the Buyers approval of the home inspection report.

Since you are not married, when one party cancels, the deal can not move forward. She does not need to sign the notice for the cancellation letter to be valid. If she still wants to buy the home without you, a new contract must be drawn up if she can get a co-signer to help qualify for the loan.

If you proceed with the sale and want out later and she does not want to sell, you must file for a partition sale. Be careful because depending on the real estate market conditions, you may not get your money back if the home sells for a lower price.

My advice to you is if your girlfriend is acting like the wicked witch of the west, do not take the yellow brick road cuz Aunty Em and Toto will not be waiting for you at the end.

 

[Tracey]

Contracts & sellers & girlfriends, oh my!


HomeGuru is right. Even if you end up losing the $2,000 earnest money you'll come out ahead of completing the sale & paying attorney & realtor fees to force her to sell next year.

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This is not legal advice and you are not my client. Double check everything with your own attorney and your state's laws.