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Cancellation of Expired Contract?


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2012 Mar 9, 8:59am   1,977 views  5 comments

by housepoor   ➕follow (0)   💰tip   ignore  

I walked on a deal (see my other post) after the contract expired. I was going to need to extend the purchase contract to get the loan. The seller and I never came to a agreement so the Contract was not extended. Well now the Escrow company and the seller are telling me that I need to file a cancellation letter with them? I said "What? I am no longer in a Contract with the seller" The contract expired the 15Th of last month. Do I need to due a cancellation on a expired contract?

All these control freaks trying to tell me what to do is starting to piss me off.

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1   thomas.wong1986   2012 Mar 9, 9:17am  

housepoor says

Do I need to due a cancellation on a expired contract?
All these control freaks trying to tell me what to do is starting to piss me off.

You need a good attorney for assistance so they dont try to screw with you.

2   zzyzzx   2018 Oct 23, 12:24pm  

Perhaps the initial contract auto-renews at expiration, or something else onerous like that.

GF is getting ready to sell a house, and I just read the contract. It's incredibly one sided in favor of the realtor and rather onerous. Meaning that they want a 4 month contract, and if you terminate the contract and still sell it on your own later, but within the 4 months, you still owe them everything. That and even if you don't sell, they will still want money for marketing your house. I told the GF that there is no fucking way I would ever sign that contract without some serious amendments and a seriously shortened time frame.
3   HeadSet   2018 Oct 23, 12:44pm  

they want a 4 month contract, and if you terminate the contract and still sell it on your own later, but within the 4 months, you still owe them everything

That is not unusual. This stops buyers from finding the listing, them making a side deal with the seller. In many areas, the listing is 6 months or more.

even if you don't sell, they will still want money for marketing your house.

That is highly irregular. If you listed at a typical 6%, then the realtor gets nothing if the home does not sell during the listing period. The only issue would be if you sold to someone on your own after the listing expired, but that person initially came by during the listing period.

Is this by chance one of those flat fee contracts, where they market for a set fee like $2,500?
4   Malcolm   2018 Oct 23, 1:44pm  

housepoor says
I walked on a deal (see my other post) after the contract expired.


Your wording sounds unusual for a real estate deal. Offers expire, contracts are a little different. They don’t just expire, someone defaults and your wording seems to indicate that you have defaulted on the contract.

1. Financing is normally a contingency. The contract doesn’t expire because you can’t get financing. Don’t make an offer, unless you are prequalified, to avoid this situation in the first place. That is like going in to a store without a way to pay for something.

2. You either removed the contingency or they are telling you to shit or get off the pot. If you cancel and removed or never had a contingency, your earnest money deposit could be forfeit. That is why they want you to sign so that you can’t say they backed out.

3. If there was a contingency, you had a certain amount of time to remove it, and therefore that time has probably expired. They want you to either remove the contingency or they can back out, but in that case you still may be in breach and they don’t have to sell you the house and probably can make a claim on your earnest money on the basis that you didn’t cancel the contract during the contingency period, which did expire thus forcing you to either put up or “walk.” When the agreed close date passes you technically breached the contract, it did not expire.

Lesson for the day, don’t monkey around with real estate contracts, they don’t simply expire, and have real financial implications. A lawyer might find a loophole, like some disclosure or detrimental fact about the property, like someone died in it or some nonsense like that.
5   zzyzzx   2018 Oct 24, 7:45am  

HeadSet says
Is this by chance one of those flat fee contracts, where they market for a set fee like $2,500?


It's Redfin. They want $4000 + 2.5% for the buyers agent.

And 4 months is longer than I care to wait if I want to fire the realtor.

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