TX Real Estate - Sales Agreement Breached We signed a contract to sell a house in Baytown, Texas. The buyer requested an extension to close, which we approved. We amended the contract accordingly, and the buyer signed it. As part of the extension agreement, the buyer was supposed to pay a second earnest money deposit, but they failed to make that payment. Today was the deadline to close, and they did not finalize the purchase.We issued a termination request today, demanding the termination of the contract and the earnest money. Our agent mentioned that under Texas law, even though the buyer did not make the second earnest money payment and breached the contract, we might find ourselves unable to sell the property. This situation is not only unfair but also unreasonable. We are seeking g
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Hello. My wife and I need help related to a Texas real estate agreement where after signing and buyer extending the close date, they have failed to close and our agent has mentioned that if they do not sign a release we may not be able to sell the house. We are very worried as this will put us in a very bad financial situation.
Anyone around?
Hello! My name is Dolan and thank you so much for contacting me! I just had a few quick questions for you: Did they suggest why they didn't meet this deadline at all?
Hi. We do not know. Today was the day to close snd our agent ended up speaking to the buyers agent and said the buyer wants to close to give him a few hours. That was today at 8am and no more responses. Buyers agent said something about being sick and not able to respond quickly. And another story that the buyer had to leave overseas about someone sick. But they asked for an extension twice and here we are. Failure to close.
Got it! Here are a few things I suggest that you do here: 1. Reach out to your agent and have them put in writing (email is fine) a formal demand to the buyer’s agent for the buyer to either close immediately or sign the release of earnest money. This helps create a paper trail that shows you’ve made every effort to resolve this. 2. Ask your agent to also contact the title company directly and see if they are holding any funds in escrow and what they recommend about proceeding. Sometimes they can help get the ball rolling with getting documents signed or advising on what the next step would be. 3. If the buyer still does not perform, talk to a Texas real estate attorney about sending a “time of the essence” letter or notice of default. That could help push the buyer to either act or give you a stronger legal basis to terminate the contract and relist. 4. In the meantime, I’d start preparing your listing to go back on the market just in case. Have your agent get everything ready so you can move quickly if this falls apart. No sense waiting on a non-responsive buyer when you may need to get it back out there fast.
I'd actually switch #3 and #4 only because getting a lawyer may be too expensive in my opinion, Johnerick. At least for what you are dealing with. Because of the late hour, I must return to this tomorrow, but I am in the office the rest of the day. Thanks!