July 28, 2008

The Standoff

20643392 The Standoff

Yesterday, I wrote about my efforts to get the buyer’s agent to remove all contingencies. Here’s a little update on how it finally played out.

July 26th, 5pm: My agent calls. She has let the buyer’s agent know that I would indeed cancel the sale if they did not remove contingencies as required.

July 26th, 5:30pm: The buyer’s agent calls and then assures me again that the deal will go through. He’ll have the signatures for me at 10:00am on Sunday.

July 27th, 10:15am: I call the buyer’s agent. He says he’ll be by my home in half an hour.

July 27th, 10:45am: I call the buyer’s agent again. Yes, he’s coming, he says. (Perhaps I should put him on speed dial?)

July 27th, 10:55am: I call the buyer’s agent a third time, inquiring about his whereabouts. He says he’s on his way and then hangs up the phone quickly. (Ouch!)

July 27th, 11:00am: The buyer’s agent shows up. He has all the paperwork, but insists on a trade-off. I need to sign for an early closing date in order for him to remove contingencies. He explains the buyers need to close early in order to lock in their rate. Reluctant (as usual), I sign.

From what I understand, the prolonged contingency period seemed to have to do with the buyers getting the loan and/or rate they wanted. Oh, and of course there’s that big deposit they’d have to forfeit once they removed contingencies. If anyone here has a better idea, feel free to drop a line.

Oh, and here are some just-listed properties in the LAX area.

Just Listed in Playa del Rey: 8650 Gulana Ave., #L2168/1bd, 1bth/$329,500

Just Listed in Playa Vista: 13173 Pacific Promenade, #224/2bd, 3bth/$768,000

Just Listed in Westchester: 6431 W. 85th St./2bd, 1.75bth/$699,000


  • buying or selling a home is stressful, now that the buyer has removed all of their contingencies in writing, you can relax, the remaining details will work out - congratulations!
  • Thanks, Phyllis. We're still trying to work out the details of all of this.

    All the contingency removals are signed off on. You think we would have cleared up all the other issues already!
  • I think the lease back & the rent back are referring to the same thing. You leasing/renting the property from the new owner at their PITI (principal, interest, taxes and insurance).

    I think the buyer prefers to be paid from escrow because that way he is assured of getting the rent - there is no security deposit (is there?) for him to fall back on. If there is some reason you don't want it out taken out of escrow.... maybe escrow can hold that money aside and release to the buyer if you don't pay them....?? Just a thought.

    Just get the ALL contingency removal signed.
  • Thanks, Phyllis. Here's what I don't get. The buyer's agent is offering a leaseback. This, I understand gets taken out of escrow. I definitely don't want that. A rent back sounds like I pay them directly?

    Also, supposedly, they are putting down a big down payment and their PITI is lower than mine. That must be a big down payment, considering how much the price of the house has gone up. So I don't get what is going on exactly.

    We'll resolve everything, but it's a bit of a bumpy ride.
  • Yippee!!! You made it and congratulations.

    Of course the buyer doesn’t want to loose their interest rate – they might not be able to afford your home if their rate is bumped. Perhaps a rent back could be used – they close early and you rent the home from them until closing. The issue may be that their payment (PITI) is higher than yours – but if everyone has the same goal, and it sounds as if buyer and seller do, than it can be resolved. Unfortunate that their Realtor just wouldn’t fess up and tell you the problem so it could be resolved without out all of the stress.
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