Buyer Trying To Treminate Sales Agreement
I have been working on selling my house for about 2 months, with a prequalified buyer. Sale price was agreed upon, inspection and repairs were agreed upon and done, with payment at closing. Now the buyer is saying that they cannot get a morgage because State Fram will not insure the property. My current insurance company has extended an offer to continue to insure this property.
Buyer is demanding that the agreement be terminated and that all ernest money be returned. Since it is possible for the buyer to get insurance, even if it isn't with the company they preferr, are they breeching the contract. Can I sue for Specific Performance? Why should I have to pay for the repairs made as part of a contract request? Any help please!!
I assume there is no provision in the contract making the deal contingent on State Farm insuring the property. I also assume there is a mortgage contingency. Why won't State Farm insure? I suggest you find out why and also get in touch with the buyer's mortgage company and provide them with a letter from your insurance company. Sounds like the buyer's mortgage company may be conspiring with the buyer to kill the deal.
Insofar as doing the repairs, if this deal blows, I think you would have to disclose to Buyer B the results of Buyer A's inspection. If the inspector's findings are legitimate, have the repairs done and then those issues are removed as potential objections with the next buyer.