seller is chafing their mind!!!!!!!

It all depends on how the contract was written. Usually in a contract assignment you assign the existing contract between you and the seller with a second contract (the assignment contract) that assigns the original contract to your buyer.

Michael

As Mike mentioned, it depends slightly on how the contract is written, but in general the seller cannot simply change their mind once the contract is signed. You (or your end buyer) might have to get an attorney involved to force the seller to honor the contract.

Good luck!

- Tom

Why did you create a new contract?

like previous said contracts are enforceable but can be a pain too, find out why she wants to back out? And with an assignment you do assign over all the terms & rights of that agreement you originally signed with the seller not this new one.

You dont create a new agreement you just assign the original one, so that could be a sticking point trying to enforce the agreement. You may have to just give the assignment money back to the buyer if the seller is being difficult, that is what I would do and move on the next deal.

Unless you can with confidence tell the seller she signed an agreement(after you speak with an attorney) sounds messy huh.

Whenever stuff like this happens I try to get the deal done but if it is going to be a huge headache for my buyer I just back out.

The fiirst contract was me and the seller with "and or assign" next to the my name as buyer. In that contract we were suppose to close on Jan 3rd. My end buyer needed a little more time to close. The end buyer said Jan 16th. I then had a assignment contract made for the end buyer and asked the seller for an extension. She agreed with $250 fee for extend close date. So I rewrote the original contract with a different close date and new buyers name.

Sounds to me like your buyer is the one who has to speak to his attorney and find out if the seller cannot just back out especially if their was a fee paid for an extension on the closing date. If i was You I would ask the seller why she changed her mind and explain how your partner (buyer) is going to close on the deal and that the attorneys already started the paper work. If all fails your gonna have to give the buyer back his assignment fee and move on to the next deal. Good luck

"So I rewrote the original contract with a different close date and new buyers name."

And who signed this new contract?

The seller and the new buyer, because of the changed close date

Sounds like your buyer has a valid contract. Pretty much up to him as to how he wants to proceed. Had you amended the original contract, you would still be involved and could refund your fee to your buyer and get a nuisance fee from the seller for failing to perform per the contract. Interesting. Let us know how it turns out.

Did your buyer put up any earnest money or consideration in the new contract?

The next time you have to do something like extend the date, etc, just write up an Addendum that will be added to the original contract. Then just use the Assignment Contract for the end buyer. Less messy. A copy of each goes to the end buyer and to your closing entity. The seller gets a copy of the original contract and of the Addendum. Not the Assignment Contract.

Good luck.

Karen

Yes, I agree. The Addendum can be used to extend the closing date, to add on an extra fee to extend the closing date. The whole purpose is to amend the contract to which all parties agree and sign the agreement.

Yes an amendment, and does sound like you buyer & seller have an agreement, so they end buyer can threaten legal action if the seller does not sell. YOu have to feel out the seller, why does she not want to sell? If she seems unreasonable & is adamant she does not want to sell then your buyer will have to pursue legal action which gets costly & could make the deal not work.

So i would talk to the seller, you may be out of the contract & have 5k but that would be wrong to burn your buyer like that by getting him a deal that will not happen-& everyone would be talking about that & you would get a bad reputation too.

Anyways live and learn & it is good to hear about these challenges & learn & move ahead.

Hurst - what ended up happening with this deal?

- Tom

Well this is an interesting twist. On the week of closing, the seller text me on Monday and said that the deal was off! I did not text back and waited to talk with her. The closing is schedule for Friday. I went to speak with her on Thursday to ask why the change of heart. She said because she did not want to sell it to me. Her sister is coming down and because I don't have any money.
I don't know where this attitude came from but it was disrespectful. I told her she can't back out because you signed a contract. She said no she didn't. She doesn't remember signing anything from me. WHAT!!! I didn't say that, but I was shocked.
Before I went to her house, I found out she didn't pay her taxes for her property for three years. Tax sale law here in my state is, if you did not pay yor taxes for three consecutive years its qulified for a tax sale. I told her, if you back out I will go to the court house and pay the taxes and have the right to the deed to your property. The taxes are about $800. She refused and I said to her, so you are going to risk your house, $10, 000, for $800. And I left.
But in Missouri, that rule only qualifies on tax sales not today. But she dosen't know that.
I went to the lawyer and asked if she can back out. She said who is the seller, I said her name, she said oh she is set to close to day at 4. WHAT!!!. It turns out, she had a vrbal agreement with another buyer to buy the property on Thursday. I gave her all the contracts I signed with the seller which was noterized by the bank. The lawyer said she will close tomorrow with your end buyer because she is in legal binding. My lawyer called her about the situation and forced her to close. Friday came and I can't be at the closing. I called my buyer about the time and place.
They borh showed and the property closed. My closing agent called me right after the closing and it DONE!!!.

This deal was stressful and worth it. This was my First deal. Thank you for the support everyone.
Thank you.

GREAT Job!!!!

I am SO excited for you! And proud of you for hanging in and making it happen! They are, honestly, seldom just really smooth... but that is why this doesn't get boring and why everybody isn't doing it!

Happy dance...

Karen

Congratulations, Hurst. Fantastic! You made it happen. I agree with Karen. It's time for the happy dance.

Patrick

__________________

Be your very best always-Judy Williamson

Change. Change is life giving. It helps us grow into someone greater than we already are.

I got my dancing shoes on, and my boots for the next deal. Thank you for sticking with me dg family.

Congratulations! Not only did you close and make some money but look at the education you got!! You took action and learned!!

On to the next one!

Michael

thats great now you can do it again.....how much did you make on this one ????

WALT

michaelmangham wrote:

Congratulations! Not only did you close and make some money but look at the education you got!! You took action and learned!!

On to the next one!

Michael

LEARN HOW to avoid this mess next time.

Glad it worked out.

NEXT.....

Great to hear - congrats!!

- Tom

First of thank you to the dg superstars on reading about my experience. I made $5000 on assignment fee on this deal.

I'm so glad it worked out for you. What I've come to discover is that every deal is a little different and you learn something new every time. It's sticking with it and working through the nitty gritty that will get you paid.

Once more, Congrats!

First of all if you created a new contract between the seller and your buyer to replace your contract with the seller than in reality you currently have NO equitable interest in the property since your contract is void.

Second, you should NEVER collect your wholesale fee until your end buyer closes on the property because of situations like this.

Right now the battle is between the seller and your buyer since they are currently in contract not you. I will say that if the seller changes their mind the buyer will want his money back.