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  1. #1
    tryptamine Guest

    Default Getting Out of Seller Contract

    Hello everyone. My sister and husband worked with a real estate agent to put their house for sale. The house is in Pennsylvania.

    They finally got a buyer. Here are the problems:

    1. Original mortage company was bought out. They imposed a penalty if the original buyer (my sister) sells within three years. She will owe $15,000 if they stay in the contract.

    2. She will have to pay both her RE agent for selling the house, and the buyers agent for finding them a house. Is this normal? In total, the selling expenses are $14,100.

    3. Sister bought the house for $192,000. Selling it for $196,500, minus $14,100 for selling expenses, minus $15,000 for three year penalty that she didnt know about, that gives my sister $167400. They have to pay off their mortgage then, and they will owe about $30,000 when this is all said and done.

    I have the standard agreement contract right here, but it doesnt say anything about terminating the contract, other than if the buyer fails to pay any money. Any input about anything will be greatly appreciated. Thank you.

    Edit: The settlement is supposed to be on August 24th.

  2. #2
    Join Date
    Sep 2005
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    98,846

    Default Re: Getting Out of Seller Contract

    Did your sister contractually agree to pay both the seller's commission and the buyer's commission?

    I doubt that there was a change in the mortgage terms with the purchase of the mortgage - the penalty would in all likelihood have been described in the original mortgage. Your sister should check.

    Seller's remorse is not a likely basis for escaping a contract. Buyers and sellers are normally held to their bargain.

  3. #3

    Default Re: Getting Out of Seller Contract

    Around here, assuming a standard real estate listing contract, the seller's agent splits his/her commission with the buyer's agent. The seller pays the same commission whether a buyer's agent is involved or not. Locally, the usual commission is 6% for a single family residence and 10% on raw land.

  4. #4
    Join Date
    Oct 2005
    Location
    California
    Posts
    1,206

    Default Re: Getting Out of Seller Contract

    Your sister is responsible for everything she agreed to in the initial mortgage agreement...nothing more and nothing less (unless she signed a subsequent agreement).

  5. #5
    tryptamine Guest

    Default Re: Getting Out of Seller Contract

    Thanks for the replies.

    She didnt sign a contract stating that she has to pay for both realtors commissions, so I dont know why this is happening. The paper says that the total commission will be 6%, so I guess this is usual.

    I also told her that there is no legal way a mortgage company can take over another company and apply new regulations without your consent/knowing.

    I will find out more information. Thanks for the replies.

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