Reading the “new questions” section in Trulia today. An owner is upset that his Boulder contract terminates after he has done several repairs to the property. The owner is so upset with that the Boulder contract terminates, he is contemplating withholding the earnest money in dispute. So what happens next?
Representation Is Your Right
From the Trulia.com post, it is vague if the seller is represented by a Realtor. A good start to avoiding an issue where your Boulder contract terminates is having good representation. Though saving fees can seem like a good way to get a better deal, remember the old adage. You get what you pay for. A good Realtor can explain what’s going on and prevent the unfortunate Boulder contract terminates scenario.
When a Boulder contract terminates, all parties generally work in good faith. This can mean returning the earnest money. Sometimes, there is a dispute. If that is the case, the Colorado contract stipulates all parties will first go to mediation. Any legal fees are the expense of the buyer or seller. Mediation can be a trying process. The goal is resolution and avoiding high costs for either or each party. And mediation is unlikely to prevent the original issue: Boulder contract terminates. Mediation is likely to resolve the earnest money dispute.
But Who Is Right?
Generally, a home buyer can terminate a contract on the Inspection – if it is not resolved to the buyer’s satisfaction. Additionally, a home buyer can terminate on title or survey issues, the inability to get financing or even an appraisal issue. Looking back to the Trulia.com question — it is difficult to know if the Boulder contract terminates from a legitimate buyer issue. To prevent expenses, sellers might consider doing repairs after all contingencies have been completed (i.e. after loan approval, appraisal, survey, etc.).
Earnest Money Release
Sellers need to know: when a contract terminates, the earnest money needs to be released in a timely manner. Failure to do so could place the owner at risk of legal action. Legal fees will only add insult to injury when a boulder contract terminates.
Legal And Tax Consul
Remember, the Colorado Contract To Buy And Sell Real Estate recommends speaking with tax and legal consul. In the event of a dispute or merely when seeking additional information, speaking with a professional attorney is a good idea. Be certain to consult a real estate specialist.