Lien Shows Up At Closing Table, Have A Dry Closing
Hi,
Here are the details:
Lein was found on the house, a couple hours before closing. Buyer and Seller arrive to close, and are informed about a lien from 1990. Lien put on the house by a bank.
The Title Company has a Dry Closing for the buyer and seller. The 24 hour time passes, and the problem has not been solved. Dry Closing option is gone/done.
My question is: The buyer has an Accepted Contract to purchase. Buyer and Seller both want the deal to go through, but a clear title can not be given to the buyer at this time. Buyer wants this house. Can the Seller stop the deal? Title Company is working on finding out all the details on the Lien.
The Realtor made a comment, there are other buyers willing to pay more for the house if the seller has to increase the price in order to pay the $20,000. Lien. The buyer has an accepted contract from the seller, so can they say the buyer has to pay more if they want the house, and end the Purchase to Buy contract.
I hope you can understand what I am trying to ask.
Thank you in advance for any input.
Buyer is not sure if Seller can just STOP the deal.
In my opinion, Seller can cancel the deal, or Buyer can cancel the deal because Seller cannot provide a marketable title to complete the transaction.
Anything beyond that is subject to negotiation between Buyer and Seller. Seller pays? Buyer pays?
Additional costs are split between Buyer and Seller?
You really need to talk to your attorney regarding contract language and specific application of State law.
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