Contract Termination - Seller
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Presented by Lane Mueller at Living Room Realty.
![Contract Termination
How may I terminate ... let me count the ways
Few for S ... still has prop (if wants or not)
TIMELINES ARE CRITICAL AND WAIVERS APPLY
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REP SELLER:
LISTING
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1. By its own terms
2. By Mutual Agreement
3. By Listing Agent ... cannot worsen client’s position
4. By Seller Breach ... consequences ... issue ... bad faith??
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SALE
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1. Buyer Default ... From PSA #25 ... EM pymt/refund
a. Misrepresents Financial Status
b. Writes Bad Check
c. Fails to Redeem PN when Due
d. Fails to Keep the other promises under PSA (e.g., date EM deposited)
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NOTE: S default does NOT terminate the agreement...B retains right to seek
Specific Performance
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2. Financing
a. Cash
i. S unconditionally disapprove of Verification of funds ...
“subjective” ... may terminate
ii. If NO verification provided S may terminate and B gets EM
unless S objects
b. LOAN
i. 2 bus days to resolve B/Property not qualifying or PSA
automatically terminates
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3. Bumpable Offers
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i. CONTINGENT RIGHT TO PURCHASE
1. If contingency not waived or removed by “Deadline” ... S
(or buyer) may elect to terminate
2. If B doesn’t choose alternative 1 or 2 ... “1” applies and
PSA automatically terminates
ii. 24/48/72
1. Terminates AUTOMATICALLY if B fails to remove
contingency w/in [___] hour notice period
2. B removes contingency but B lender does NOT provide
loan preapproval within allotted time [no default
period ... must insert] ... S MAY ELECT to TERMINATE](https://image.slidesharecdn.com/contractterminationhandoutsellerside-140813192944-phpapp01/85/Contract-Termination-Seller-1-320.jpg)
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4. COUNTER OFFER EXPIRATION DATE
a. If Seller Counter offer accepted AFTER counter offer expiration date/
time ... S choice to complete Seller Acknowledgement and check box
to “not agree to be bound” or may not complete Acknowledgement
and PSA will terminate within 2 bus days of Buyer acceptance
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5. SELLER CARRY
a. PSA automatically terminates 10 bus days after mutual acceptance if B
and S do NOT agree on seller carry back terms
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6. Option Agreement
a. Expires by Own Terms
b. Automatic Termination of Option and PSA if B DEFAULTS on LEASE or
ABANDONS property or a JUDGMENT OF EVICTION is entered against
B
c. Automatically NULL AND VOID if B subleases or assigns interest in
lease, option, PSA. or the Property itself without S WRITTEN consent
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7. SHORT Sale Addendum
a. May REJECT 3rd p terms
b. Agreement terminates by own terms if 3rd p approval is not received by
[___] date
c. 3rd p approval NOT by closing date
d. 3rd p REJECTS B offer any time PRIOR to Closing
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Contract Termination - Seller
- 1. Contract Termination How may I terminate ... let me count the ways Few for S ... still has prop (if wants or not) TIMELINES ARE CRITICAL AND WAIVERS APPLY ! ! ! REP SELLER: LISTING ! 1. By its own terms 2. By Mutual Agreement 3. By Listing Agent ... cannot worsen client’s position 4. By Seller Breach ... consequences ... issue ... bad faith?? ! SALE ! 1. Buyer Default ... From PSA #25 ... EM pymt/refund a. Misrepresents Financial Status b. Writes Bad Check c. Fails to Redeem PN when Due d. Fails to Keep the other promises under PSA (e.g., date EM deposited) ! NOTE: S default does NOT terminate the agreement...B retains right to seek Specific Performance ! 2. Financing a. Cash i. S unconditionally disapprove of Verification of funds ... “subjective” ... may terminate ii. If NO verification provided S may terminate and B gets EM unless S objects b. LOAN i. 2 bus days to resolve B/Property not qualifying or PSA automatically terminates ! 3. Bumpable Offers ! i. CONTINGENT RIGHT TO PURCHASE 1. If contingency not waived or removed by “Deadline” ... S (or buyer) may elect to terminate 2. If B doesn’t choose alternative 1 or 2 ... “1” applies and PSA automatically terminates ii. 24/48/72 1. Terminates AUTOMATICALLY if B fails to remove contingency w/in [___] hour notice period 2. B removes contingency but B lender does NOT provide loan preapproval within allotted time [no default period ... must insert] ... S MAY ELECT to TERMINATE
- 2. ! ! 4. COUNTER OFFER EXPIRATION DATE a. If Seller Counter offer accepted AFTER counter offer expiration date/ time ... S choice to complete Seller Acknowledgement and check box to “not agree to be bound” or may not complete Acknowledgement and PSA will terminate within 2 bus days of Buyer acceptance ! 5. SELLER CARRY a. PSA automatically terminates 10 bus days after mutual acceptance if B and S do NOT agree on seller carry back terms ! 6. Option Agreement a. Expires by Own Terms b. Automatic Termination of Option and PSA if B DEFAULTS on LEASE or ABANDONS property or a JUDGMENT OF EVICTION is entered against B c. Automatically NULL AND VOID if B subleases or assigns interest in lease, option, PSA. or the Property itself without S WRITTEN consent ! 7. SHORT Sale Addendum a. May REJECT 3rd p terms b. Agreement terminates by own terms if 3rd p approval is not received by [___] date c. 3rd p approval NOT by closing date d. 3rd p REJECTS B offer any time PRIOR to Closing ! ! !