Buyers Can Cancel Their Contract April 7th, 2007
Ever since I started in real estate in Wasilla and Palmer, it has been my belief that a good transaction means that all parties are happy right up to the closing table. If something comes up between the initial offer and the closing table it is important to communicate the issue to all parties. Usually, good communication can ease the problem and help all to see a way to continue the transaction.
But,if things start to unravel it is usually the buyer who initiates the recission. In Alaska, the buyer has quite a few opportunities to walk away from a deal. Here are a few of them.
- 1. At the beginning of a transaction the buyer should have an inspection done. If issues come up during the inspection, most purchase agreements allow the buyer to cancel.
- 2. The buyer should receive a copy of the seller’s property disclosure before writing an offer but that is sometimes not the case. If the buyer receives the disclosure later, he/she has three days to rescind the contract.
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Marty Van Diest, Tele 907.232.7900 / marty[at]valleymarket[dot]com
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Hey Marty,
Here’s a question for you regarding Disclosures-…What if you represent a buyer in a transaction and this is on a new construction purchase, you get a double signed contract between Buyer and Seller, along with the disclosures doubled signed. The title company finds out that there is an exsisting well on the property. This disclosure wasn’t clarified in the beginning. Does the buyer still have the right to rescind?
That’s kind of strange, how did the title company find out about the well? Was there a house on this property previous to this one?
I would think some questions would need to be answered about the well. Is it too close to the septic system? How does it harm the property.
Bottom line, it does seem to be a new disclosure. Did the seller not know about the well?
The previous owner put one in and it was on file.The Subdivision was 11 yrs old. There was a mobile on the lot at the time.The seller did know about it but must have forgot to disclose it.?? The fact of the matter is that this transaction was handed to me and in the additional terms it did state something to the fact that the well was to be approved by the buyer. So, at the time of already having a doubled signed contract I didn’t think about any terms.? There should have been other disclosures , one would think. The question?remains–Does the Buyer still have the right to rescind the contract and get their EM back. If they didn’t like the fact that the well was an old one?
Alaska laws are pretty good about disclosure. The fact is the buyer does have teh right to refuse if they dont like the well situation. You may be able to diffuse the situation or save it, if all of you are to come up with a satisfactory agreement. It seems from what you said, it was pretty simple, all they have to do is approve the well. There is no detail on what they would deem wrong. And as Marty said, what harm is there on having one there? Are there two now? And where is the septic (it can always be moved at the sellers expense because they failed to disclose all).
One last thing, remember your own reputation, people that are known for working difficult situations through…are often delt repeat business. This is a small community and word of mouth is the best advertising. If this is a builder–you would think they would be willing to work a deal.
L.