In Laws Selling House, Buyer Can't Close For 90 Days
Buyer offered full asking price but cannot close for 90 days do to lease obligations. I won't know for sure until I talk to them tonight or tomorrow but my wife said they put 16k down. They are preapproved. To me it sounds like there is no earnest money and the 16k is their downpayment.
Maybe i'm just being negative but something does not sound right. Why would they give 16k as earnest money if it is earnest money.
If it is a down payment and there has been no earnest money what would be a fair amount? They are going to be moving out of the state and quitting their jobs so if the buyer backs out they are going to be in a real mess. Is it legal to keep the earnest money even if the buyers financing falls through ETC. if it is stated in the contract? IMHO 3 months is a long time to wait to close only for the buyer to back out at the last minute.
The earnest money gets applied towards closing and the money may or may not be enough to cover the down payment. Depending on the price of the house I look at 16k as a HUGE sum of money as the average here is $1000.
It sounds to me that the buyers really want the house and since they can't close for 90 days they are giving you a TON of money as good faith.
You can only keep the earnest money as provided in the sales contract. Typically if the buyer cannot obtain financing or goes out on another contengency you cannot keep it but you possibly can if they simply deside not to purchase the property.
You could have them sig off on some of the contingencies, e.g. If they are preapprove, then removed the loan contingency
Can you ask for a higher price and buy them out of the lease?
is it's worth enough to the in-laws to just buy them out?
What about buy and lease back to the in-aw.
How much of a jamb are the in-aw to move?
How easy is it to get another buyer.
All thoughts to consider
Remind them also that is can usually be 30-45 days before you make your first mortgage payment on a home. So you could take possession of the home 1-2 months before your lease expires and still avoid making double payments.
Chase