RE/MAX AROUND ATLANTA
  • Home
  • RMAA HUB
  • Events
  • Local Service Providers
    • Attorney Partners
    • Lender Partners
    • Home Inspection Companies
    • Home Cleaning Services
    • Home Warranty Companies
    • Insurance
    • Photography
    • Estate Sales/Clean-outs
    • Property Management
    • Repair Services
    • Security Systems
    • Storage & Moving Companies
  • OUR TEAM
  • SMART MOVE PROGRAM
  • Online Payments
  • BROKER CORNER
  • Locations

BROKER CORNER

Termination and Relisting A Property After A Buyer’s Breach

4/28/2022

0 Comments

 
Picture
​Sellers are always anxious to get their property back on the market after it looks like the buyer won’t be closing.  So long as the purchase agreement is properly terminated, the property can be relisted.  Watch for these issues to be certain that termination is proper.  If so, and the Seller terminates by a Unilateral Termination, the Seller can immediately relist. An improper termination could open the Seller to liability. 
 
It is important to understand the differences between a breach of contract, an anticipatory breach of contract and a non-breach of the contract. Here are some common situations.
​
  1. The Buyer did not show up for closing.  Can the Seller terminate and relist?
So long as the Buyer does not have the right to either cure a breach or extend the closing date, the Seller can terminate and relist.  Be careful here. The GAR contract allows for an 8-day extension under certain circumstances.  Be sure not to terminate until the right to an 8-day extension has expired – usually the end of the day set for closing.  To be certain, the Seller should unilaterally terminate the contract the day after the date set for closing.  As soon as the Unilateral Termination has been delivered to the Buyer, the Seller can relist the property.  A Seller’s right to earnest money in this case is not extinguished by a seller’s unilateral termination. The determination of distribution of earnest money can still be handled after the termination.
 
  1. The Buyers say they are probably not going to close on the date set for closing.  What if the buyers say that are not going to close? 
Anticipatory Breach occurs if a party refuses to perform contractual obligations prior to the time performance is required. It is treated just like a breach, it just occurs before the time for performance. To qualify as a claim of anticipatory breach, the breach must be an unqualified repudiation of the entire agreement before the time of performance. In other words, the party must unequivocally refuse to perform before the performance is required. Anything less is not an anticipatory breach and the seller cannot terminate and relist.
 
So, if the buyer says he is probably not going to close, the Buyer has not breached the agreement and the Seller cannot terminate.  But if the Buyer says he is not going to close, he has breached the agreement and the Seller can terminate.
 
  1. What if a buyer is denied a loan?
The Buyer tells the Seller he has been denied financing by one lender, but will pursue other financing.  This would not be an anticipatory breach because there is nothing unequivocal to indicate that the buyer does not intend to perform. However, if the buyer cannot get financing and tells the seller that he cannot perform, this is an anticipatory breach.  Usually, in this case, the buyer will agree to a mutual termination.  
0 Comments



Leave a Reply.

    RMAA

    Real Estate News, Brokers Blog & More

    Categories

    All
    Broker's Corner
    Mortgage Minute

    Archives

    January 2023
    December 2022
    November 2022
    October 2022
    September 2022
    August 2022
    July 2022
    June 2022
    May 2022
    April 2022
    March 2022
    February 2022
    January 2022
    December 2021
    November 2021
    October 2021
    September 2021
    August 2021
    July 2021
    June 2021
    May 2021
    April 2021
    March 2021
    February 2021
    January 2021
    December 2020
    November 2020
    October 2020
    September 2020
    July 2020
    June 2020
    May 2020
    March 2020
    February 2020
    January 2020
    December 2019
    November 2019
    October 2019
    September 2019
    August 2019
    July 2019

    RSS Feed

RE/MAX AROUND ATLANTA
© COPYRIGHT 2023. ALL RIGHTS RESERVED.
  • Home
  • RMAA HUB
  • Events
  • Local Service Providers
    • Attorney Partners
    • Lender Partners
    • Home Inspection Companies
    • Home Cleaning Services
    • Home Warranty Companies
    • Insurance
    • Photography
    • Estate Sales/Clean-outs
    • Property Management
    • Repair Services
    • Security Systems
    • Storage & Moving Companies
  • OUR TEAM
  • SMART MOVE PROGRAM
  • Online Payments
  • BROKER CORNER
  • Locations