Q: Is an expired real estate sales agreement binding and continuable by buyer if seller failed to resolve contingency?
Closing date passed last year on 7/3/17. Contract was contingent on a water well to be completed, but it did not happen in the short time allowed (less than 2 months). Buyers did not provide me (seller) with financing updates and apparently was not ready to close with funds either. OREF website claims that contracts with contingencies are not binding until they are removed/waived. No completion dates for contingencies were given on contract. If closing date passes, and buyers do not enforce the contingency or exercise their right to cancel based on the failed contingency, does that mean they waive the contingency, and then must prepare for closing without the well? Does the contract automatically terminate as being null and void? They are demanding to complete the well and continue with the transaction, although I do not want to sell at this time.
A: It is not possible to answer your question without seeing the document and knowing what communications took place between buyer and seller. In general, a contingency is for the benefit of a specific party. If for the benefit of the buyer, the agreement may state that the contingency is waived, or deemed to have been fulfilled, if the buyer fails to declare and give notice that the contingency has failed. In that case, the buyer would be obligated to proceed with closing, even though the contingency was not fulfilled. If the buyer then failed to close in a timely manner, the buyer might have to forfeit the earnest money deposit. But all of this depends on how the purchase and sale agreement is written. I suggest you take your agreement to a real estate attorney for analysis and an opinion. You may have several options as to how to proceed.
Justia Ask a Lawyer is a forum for consumers to get answers to basic legal questions. Any information sent through Justia Ask a Lawyer is not secure and is done so on a non-confidential basis only.
The use of this website to ask questions or receive answers does not create an attorney–client relationship between you and Justia, or between you and any attorney who receives your information or responds to your questions, nor is it intended to create such a relationship. Additionally, no responses on this forum constitute legal advice, which must be tailored to the specific circumstances of each case. You should not act upon information provided in Justia Ask a Lawyer without seeking professional counsel from an attorney admitted or authorized to practice in your jurisdiction. Justia assumes no responsibility to any person who relies on information contained on or received through this site and disclaims all liability in respect to such information.
Justia cannot guarantee that the information on this website (including any legal information provided by an attorney through this service) is accurate, complete, or up-to-date. While we intend to make every attempt to keep the information on this site current, the owners of and contributors to this site make no claims, promises or guarantees about the accuracy, completeness or adequacy of the information contained in or linked to from this site.
