How Pending Sales Can Go Bad

Nobody is happy when a pending sale blows up or cancels -- least of all the agents involved -- but it happens.

In California, for example, when a purchase agreement is signed by the sellers and buyers, it's simply an agreement to agree. Buyers have cancellation rights -- that is, contingencies -- which allow home buyers to walk away within a specified time period. By standard contract default, that period is 17 days. In fact, many agents don't even explain to their buyers that an agreement to purchase is not really binding on the buyer until the contingencies are removed because they don't want them to know, for obvious reasons.

I'm not defending that kind of buyer representation, just saying that's how many agents do business. However, canceling a transaction or backing out of a deal because of a contingency is not the sole reason, by any stretch of imagination, as to why pending sales go bad. The main reason is . . . read more

Ready to Know More About Real Estate Contracts? Click below:

• Contingencies to Sell
  
• Canceling Purchase Contracts
  
• Buyer's Market Offers

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