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What if a buyer has signed a real estate purchase contract and handed over the contract deposit? What if the buyer's attorney has already couriered this signed contract along with the good faith deposit check to the seller's attorney? How does the buyer back out of the contract before the seller has had a chance to counter-sign?
This is a really tough question that most brokers I have interviewed have not been able to answer. Here is the answer I believe. Please see below for a sample email a buyer's attorney would hypothetically send to a seller's attorney to give notice that the buyer has signed the contract and also provided a good faith deposit and that both are on their way to the seller's attorney. Note the rights that the buyer's attorney specifies about the buyer's ability to withdraw at any time before the seller has confirmed in writing that they've counter-signed.
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Please find please find attached herewith the proposed Contract of Sale - Cooperative Apartment, Rider To Contract of Sale (containing paragraphs 32 through 49), Purchaser's Rider to Contract of Sale – Cooperative Apartment (containing paragraphs "A" through “DD") and Lead Warning Statement (collectively hereinafter referred to as the “Contract of Sale”) pertaining to the above-referenced transaction. As may be seen, Purchaser has duly executed the Contract of Sale.
As such, the Contract of Sale is being provided to you for the purposes of obtaining Seller's signature. Finally, please ensure that you sign the Contract of Sale as Escrowee acknowledging your acceptance to act as Escrow Agent in this transaction. Thereafter, kindly return a fully executed duplicate original of the Contract of Sale to this office. Per the following PDF provision of the Contract of Sale a PDF version of the Contract of Sale is acceptable.
Please note that there is a provision in the Purchaser's Rider paragraph “DD” which states, in sum and substance, that:
It is consented and agreed that Portable Document Form a/k/a “PDF” signature copies, facsimile copies or Tagged Image Format File a/k/a “TIFF” of the signatures of the Parties of this Contract of Sale and Riders (“Contract of Sale”) and pages that same are located thereon shall be deemed to be originals. It is further agreed that this Contract of Sale may be executed in one or more counterparts, each of which shall be an original, and all of which together shall constitute a single Contract of Sale. This Contract of Sale shall be deemed to have become effective when one or more such counterparts shall have been signed by each of the Parties below and same is delivered to the Purchaser’s attorney
Additionally, please find a copy of Purchaser's Contract Deposit Check via this Office’s Attorney IOLA Check Number 24839, dated July 28, 2018, in the amount of $250,000, made payable to GIBBER GABBER, ESQ. as Escrow Agent
In regard to the Lead Warning Statement please ensure that same is signed by the Seller acknowledging that Seller has no documents nor data relating to any issues pertaining to lead-based paint and/or lead-based paint hazards concerning in any manner the unit.
Said Contract Deposit when received by you is being provided to you pursuant to Paragraphs 1.16.1 , 1.24, 2.2.1, 27.1 and should not be deposited until such time that Seller has signed a duplicate original of the Contract of Sale and this Office acknowledges receipt in writing of a fully executed duplicate original of the Contract of Sale.
Notwithstanding anything to the contrary, Purchaser reserves the right to withdraw its offer to acquire the Premises at any time prior to my receipt of a fully executed duplicate original of this Contract of Sale and request a return of the un-executed Contract of Sale to this Office along with the Purchaser’s non-deposited Down-payment.
Rest assured, it is the farthest thing from the Purchaser's mind at this point to do anything but move forward with this transaction. As such I would encourage you to please obtain Seller's signature so that as soon as possible we may wrap up this deal.
No modifications or alterations should be made to the Contract of Sale without this office’s prior written approval and consent.
Upon receipt and review of this letter, with enclosures, should you have any questions or comments pertaining to this or any other matter, please do not hesitate to contact the undersigned.
This is a really tough question that most brokers I have interviewed have not been able to answer. Here is the answer I believe. Please see below for a sample email a buyer's attorney would hypothetically send to a seller's attorney to give notice that the buyer has signed the contract and also provided a good faith deposit and that both are on their way to the seller's attorney. Note the rights that the buyer's attorney specifies about the buyer's ability to withdraw at any time before the seller has confirmed in writing that they've counter-signed.
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Please find please find attached herewith the proposed Contract of Sale - Cooperative Apartment, Rider To Contract of Sale (containing paragraphs 32 through 49), Purchaser's Rider to Contract of Sale – Cooperative Apartment (containing paragraphs "A" through “DD") and Lead Warning Statement (collectively hereinafter referred to as the “Contract of Sale”) pertaining to the above-referenced transaction. As may be seen, Purchaser has duly executed the Contract of Sale.
As such, the Contract of Sale is being provided to you for the purposes of obtaining Seller's signature. Finally, please ensure that you sign the Contract of Sale as Escrowee acknowledging your acceptance to act as Escrow Agent in this transaction. Thereafter, kindly return a fully executed duplicate original of the Contract of Sale to this office. Per the following PDF provision of the Contract of Sale a PDF version of the Contract of Sale is acceptable.
Please note that there is a provision in the Purchaser's Rider paragraph “DD” which states, in sum and substance, that:
It is consented and agreed that Portable Document Form a/k/a “PDF” signature copies, facsimile copies or Tagged Image Format File a/k/a “TIFF” of the signatures of the Parties of this Contract of Sale and Riders (“Contract of Sale”) and pages that same are located thereon shall be deemed to be originals. It is further agreed that this Contract of Sale may be executed in one or more counterparts, each of which shall be an original, and all of which together shall constitute a single Contract of Sale. This Contract of Sale shall be deemed to have become effective when one or more such counterparts shall have been signed by each of the Parties below and same is delivered to the Purchaser’s attorney
Additionally, please find a copy of Purchaser's Contract Deposit Check via this Office’s Attorney IOLA Check Number 24839, dated July 28, 2018, in the amount of $250,000, made payable to GIBBER GABBER, ESQ. as Escrow Agent
In regard to the Lead Warning Statement please ensure that same is signed by the Seller acknowledging that Seller has no documents nor data relating to any issues pertaining to lead-based paint and/or lead-based paint hazards concerning in any manner the unit.
Said Contract Deposit when received by you is being provided to you pursuant to Paragraphs 1.16.1 , 1.24, 2.2.1, 27.1 and should not be deposited until such time that Seller has signed a duplicate original of the Contract of Sale and this Office acknowledges receipt in writing of a fully executed duplicate original of the Contract of Sale.
Notwithstanding anything to the contrary, Purchaser reserves the right to withdraw its offer to acquire the Premises at any time prior to my receipt of a fully executed duplicate original of this Contract of Sale and request a return of the un-executed Contract of Sale to this Office along with the Purchaser’s non-deposited Down-payment.
Rest assured, it is the farthest thing from the Purchaser's mind at this point to do anything but move forward with this transaction. As such I would encourage you to please obtain Seller's signature so that as soon as possible we may wrap up this deal.
No modifications or alterations should be made to the Contract of Sale without this office’s prior written approval and consent.
Upon receipt and review of this letter, with enclosures, should you have any questions or comments pertaining to this or any other matter, please do not hesitate to contact the undersigned.
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