I represented a seller, Yolanda, whose husband, Ringo, owned a company that rented the garage from her. The Buyer was purchasing this property as an investment and was willing to allow all tenants to stay. In the contract, Yolanda had agreed that Ringo’s business would sign a lease to extend his occupancy for another year with the Buyer. However, when we got to closing, Ringo changed his mind and refused to sign the lease. The Buyer then refused to close, claiming that Yolanda had not upheld her end of the contract. We did eventually close.
How Did we Resolve This?
It was simpler than you might think. We informed the buyer that if he did not close, we would keep the deposit because the seller had no legal ability to bind another person. Morally i don’t agree with this but we have to look out for OUR Client’s best interest.
How to Avoid This?
Ensure that there is not another necessary party to an agreement who has not signed the contract.
Don’t let contractual chaos disrupt your property transactions! Ensure all necessary parties are involved from the start and have signed the agreements required. Protect your client’s investments and interests by being proactive and precise in your dealings. Need expert guidance to navigate complex real estate transactions? Contact us today to ensure your next property deal is secure and straightforward, without the unfortunate events!
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