My granddaughter is in the process of purchasing a condo in Chicago. First time buyer. Seller's attorney refused my granddaughter's attorney's request on two points:. " Seller will not waive their right to procure financing for you, if you are denied financing""Sellers did not agree to limiting their remedy to keeping your earnest money deposit" My question is: just how dangerous a territory are we threading by accepting these terms? We expect the sale to go through of course. She graduated from college, worked 2 -3 jobs, not in her field, works hard, saved, Plans to go back for post-graduate work. She just needs a safe place to live.She has been pre-approved for a mortgage prior to making her offer on the property.Her down payment is 20%. The earnest money deposit is approximately 2.5 % of the agreed upon selling price. I will be co-signing for the loan. The Mortage Co. tells me I will be a "co-borrower" as it is termed now-days. How common and how likely is the situation whereby she / we would be sued for damages beyond the loss of earnest money deposit and what kind of amounts may we be talking about?We were to sign the final contract this week, her attorney had to ask for an extention because the inspector hired could not gain access to the roof on the initial inspection of the condo. It is now re-scheduled for Friday. Her attorney is still waiting for minutes of Association meetings which I guess would have shed some light on any possible roof issues. According to the Mngnt. co at the initial inspection, when access could not be gained "the roof is fine," but they did not know it's age. In later communication they stated it is "approximately 5 years old". Thogh no official paperwork as to when the roof was installed, any guarantees etc. on the roof.Provided, the roof is O.K. and she enters into the contract, can we loose our shirt under certain circumstances?
State/Country relating to question: Illinois
I would just like a second opinion.
Just answer has been very helpful to me in the past.
Thanks for your question.Is there some kind of limit here on what interest rate their financing is.To me this is real dangerous if they get to procure any loan here without a set rate.There is always the possibility they can sue both of you.It happens and especially in condos it is a possibility.You need to listen to her lawyer weigh in on whether overall he thinks this contract is good or bad.It sure sounds real pro seller.Guess it depends how bad she wants the condo here and how risky her lawyer sees the contract they ahve put forth.Thats really what she depends on her lawyer to advise her.I see some risk here beyond what is a normal sales contract for both you and your daughter.RayAnswers40360.1295461806
Thank you, XXXXX XXXXX confirmed my fear about the interest rate. My gut feeling was , that we are taking a risk. We hope it will not come to the point of a law suit since she has been pre-approved. So my remaining question is ... what kind of monetary amount are we talking about. IF... it comes to that? How much could they sue us for?
When a seller enters into a contract, naturally, they may miss out on other opportunities to sell while the details are worked out .
Well they are reserving right here to sue you.There really isn't any limit here as long as they can show and justify losses.As you state they may argue loss of sale here and it could be some serious damages.If both of you have good credit I don't see how you cannot get loan though especilly if she prequalified here.It might be an acceptable risk.RayAnswers40360.1425607639
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