It’s an exciting time when a home Seller and home Buyer enter into a purchase contract. However, both parties should note that The Texas Residential Resale Contract gives the Buyer several “outs”. Let’s count the ways a buyer can take a hike…with their earnest money intact.
1) Seller does not adhere to deadlines for delivery of property Survey or Seller’s Disclosure.
2) Parties do not agree to complete lender required repairs.
3) Seller fails to complete agreed upon repairs.
4) Buyer’s closing expenses exceed any amount expressly stated in the contract.
5) Property experiences a casualty loss.
6) Buyer exercises right to terminate contract during the “Option” period stated in the contract.
7) Buyer cannot obtain financing within the time specified in the Third Party Financing Addendum for Credit Approval.
8) Property fails to appraise for contracted sales price.
9) Buyer objects in writing to encumbrances, defect, or exceptions to title.
10) Buyer does not receive the home owners association documents. Or Buyer can cancel within 3 days after receiving the HOA documents.
It is important to have a listing agent that is closely monitoring deadlines, documents, title, etc… to avoid unintentional lapses. It is also vital for both Seller and Buyer to ensure their agent is well-versed in contracts and knows how to properly complete them in order to provide the most protection for their client!