Welcome to Reliberation Sign in | Help
in
Latest Most Popular Active Watch List Amigos  
Lisa Bachek

contg. waiver kick out clause does it realy mean anything?

By: Lisa Bachek
Sunday, May 20, 2007 9:20 AM

In the state MO the congt waiver of financing seems to be some what pointless untill pass the inspection phase.

How does your contract work in your state with this clause? In MO a buyer could waive when then contg is called and proceed to the inspection part, and move forward, but still has all the rights to terminate uner the inspection par and need realy no just reason only get and pay for one imspection  and provide to the seller that copy. I have only realy had this happen once but now has made me rethink why we even have this form of waiver.

This is what happen,,,,,,, property went under congt contract, another contract came 2weeks later seller called congt.(72hr kick out) buyer waived and proceeded forward, with inspections (10days) They waited untill the very last day down to the minute on each time frame and then   termainated  because the buyers house did not go under contract. They  provided the seller with their inspection report and walked away . There is no protection for sellers. 

 The inspection realy had no problems nothing that could not have been worked out, minor repairs.  The  Buyers agent was called out on it, and did submitt a notice again for way out of the ball park if your going to give it to me  I'll by notice, of cousre sellers refused. end of story.

The home did go under contract the next week, and sold but the frustration that everyone had to go through was just so avoidable. Not to mention the second buyers where so disappointed because they realy wanted that house , but had to be moved in by a certain date and could not waite around. Everyone seems to of lost something over that other agents lack of proffessionalism & those buyers wishfull thinking!

<< Read More at Reliberation.com

Comments

Gary Szolosi
Member Since '03

Gary Szolosi said:

It appears that your contract was contingent upon two contingencies, Sale of Home and Inspection.  In order to trigger the kick clause that I use it would require an offer that had no contingencies. I only allow 24 hours to withdraw contingencies or we accept the other offer. Typically the inspection is done in the first 10 days, so it is normally not an issue. However, I also get listings to do a home inspection prior to listing whenever possible. An exception to this in a newer home that we are pretty confident will pass all inspections.  In your case the inspection period appears not to start until the buyer’s home is sold. So I can understand why they may be hesitant to pay $250 for an inspection when they may not get the home.  Again, if I had a new offer and my kick clause did not address the inspection period, (mistake) you were probably bound by the agreement to allow them the inspection period.  Had you covered the Inspection in the Kick Clause by stating there was no additional time provided for inspections should the contract be called by another offer and it is recommended that the home inspection be done within the first 10 day from the contract date, you may have eliminated the hassle.  Since any new offer would also have to agree to purchase without a contingency for inspection, the original buyer is in the same position. Had the seller done an inspection prior to any offer, he could have also eliminated these problems.

Kick clauses do work if they cover all aspects but sales contingent on a home sale seem to always provide some problems no matter how well we prepare. Even in today’s market, I am hesitant to recommend accepting a contract when a home sale is involved without explaining all the pitfalls that go with it.

May 20, 2007 9:38 AM
Lisa Bachek
Member Since '04

Lisa Bachek said:

Standard form clause and yes you're right 2 contg. We now address this issue on counter offers , done lots of  congt deals never had problems with this , most genreraly when they firm they realy want the property and non issue. It only takes one time to sour the idea of it.  

and to learn the lesson well.

May 20, 2007 10:17 AM
Todd Clark
Member Since '06

Todd Clark said:

It always seems to take us one bad situation to learn! I've changed the way I write a lot of contracts now based on past problems I have had.

May 20, 2007 10:39 AM
Shelly  Constantz
Member Since '07

Shelly Constantz said:

I just went to an attorneys luncheon on contingency contracts.  

Learned a lot, and when I get back to the office tomorrow where I have my notes, I will share with all.  Some of the things I remember off the top of my head if you represent the seller, require the inspection be perfomed within the first 10 days and remove that contingency, so the only remaining contingency is the home being sold.

If you represent the buyer, request a 72 hour kickout, state that is it 72 business hours.  that way if your buyer can perform with different financing (bridge loan, etc) at least the will have a chance to contact their mortgage people and get it in place.  and usually you need normal 9 to 5 business hours for that to take place.

sorry this happened to you.

Shelly

May 20, 2007 9:17 PM

Add a comment

To post a comment you can sign in using a Point2 ID. Sign in.
Don't have a Point2 ID? Join Point2 NLS or post as a guest.

My Blog

Lisa Bachek
Re/Max All Stars

Lisa Bachek
Member Since '04

recent comments
"manufactored housing lendin..."
Lisa Bachek
"short sales again"
Lisa Bachek
"where can i find some money"
Lisa Bachek
"is this a new trend"
Lisa Bachek
"blog post plagerism all s f..."
Lisa Bachek
"help raise your rankings on..."
Lisa Bachek
"fraudsters on the prowl again"
Lisa Bachek
"randy on multi million doll..."
Lisa Bachek
"the umpires call"
Lisa Bachek
"have we been trained to bec..."
Lisa Bachek