Termination Agreement

NW Ryan is back on the market. The transaction failed today through no fault of the seller or the property. The cash buyer walked away from the transaction and forfeited their earnest money. This is only the second time in five years that I have seen a buyer walk at this stage in a transaction but this is exactly what earnest money is for. 100% of it will go to the seller. There were no contingencies left that would entitle the buyer to get keep their earnest money.

A buyer is only at financial risk for the amount of earnest money committed in the offer. The buyer can walk for any reason at any time before closing and forfeit their earnest money if there are no valid contingencies to refund the earnest money. The seller can be sued for specific performance and forced to close the transaction under the terms of the contract.

13 Comments on “Termination Agreement

  1. Careful not to breach confidentiality on either side of the transaction without express releases. See recent RMLS rules for details. FC

  2. The property wasn’t at fault? Perhaps the buyers felt that losing the earnest money was preferable to losing 30% of the dwelling’s value in the upcoming downturn.

    Buying any Portland house with a cash offer would be like taking thousands of dollars and setting them on fire.

  3. To each their own opinion (Naysayer and Chuck). No mention of either the buyer or seller’s names. After a termination, is there a transaction? There is no longer a binding contract and both parties have mutually released.

    Hard to believe that two posts in two days have had people questioning RMLS rules. Maybe I should just back off and aim for something vanilla. I was perfectly ready to be wrong yesterday but the listing agent, RMLS and my principal broker sided with me.

  4. Well, Charles, you’re the one who argued forcefully previously that the RE industry has to change (e.g., it doesn’t make sense that the seller should determine what a buyer’s agent is paid, etc.). It only makes sense that questioning RMLS rules would be a precursor to such change. I doubt few people would side with RMLS, for example, in saying that agents’ commission should be based on the gross price, not the net (your unconvincing rationales aside). This is just insane, and an egregious exploitation of clients.

    [BTW, I have yet one more impersonator on this board, if you check the IP address of posts on the previous thread.]

  5. With interest rates low and the tax breaks of a mortgage I am surprised that someone would pay cash for a house these days. But then again, it’s hard for me to imagine having $699K lying around to do so!

    And Tiffany, how could I ever impersonate you? I do wish you would cool down a bit and discuss things instead of argue things. Charles is doing as good service by operating this blog. Let’s maximize it’s potential.

  6. Those people with the 699K laying around are the ones who have ruined real estate in places like Portland. They’re the ones the condo towers were built for so they could have a cool dwelling in every cool city. Problem is, they’re very fickle and are now abandoning their “investment” strategy now that real estate is reverting to its more traditional low but steady returns. (After it goes through a painful period of decline.)

    That’s what happens when a culture worships the top 5% and creates policies that favor the top 5%’s interests.

  7. I bet NW Ryan was going to be an owner occupied home.

    And BTW, Tiffany Barnswell = Bearlee

  8. It could be that a cash buyer has sold a home with significant equity. They are not the ones to ‘credit’ for the unsustainable increase in housing prices, it was those crazy loans. If home buyers were required to put even 50% down real estate transactions would come to a screeching halt.

    Any prospective buyer can have buyer’s remorse.. for many that purchase has a huge emotional overlay.

    That said, a person who can make a cash offer on a home has tremendous leverage in the sale price negotiation.

  9. “And BTW, Tiffany Barnswell = Bearlee”

    OMG, please tell me that was a joke.

  10. I dunno. I met Californians who were doing weekend trips to buy up real estate in places like Phoenix and Portland so they could flip it. I also have read about those who buy condos here and there because they need a place to go to the bathroom when they visit. It’s appalling.

    And if Tiffany = bearlee, that would have to be the most bizarre example of bipolar behavior in the blogosphere.

  11. “And if Tiffany = bearlee, that would have to be the most bizarre example of bipolar behavior in the blogosphere.”

    I think that is the best compliment I have ever received though it doesn’t beat the compliment or should I say misspoken word that occurred at work today…in assessing one of my patients I asked him what color I was wearing (I was wearing green scrubs) and he said “nothing”. He was visually impaired though at the time I didn’t know it so I got a good laugh out of it.

    My new rule of thumb…I will know when my patients are well medicated when I appear in their ‘dreams’….

  12. Excuses aside, the home did not sell. The clock is still ticking. The purchase price is still falling.

  13. “And if Tiffany = bearlee, that would have to be the most bizarre example of bipolar behavior in the blogosphere.”

    Sorry but I have to bring it up again for Bob/Wang. That probably also means she is the guy that moves Richard Pryor’s Saab in “Moving”

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