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RealEstateAnswer
RealEstateAnswer, Lawyer
Category: Real Estate Law
Satisfied Customers: 24899
Experience:  10+ years in handling Leases, Landlord-Tenant, Foreclosures,Mortgages, and Eviction cases
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I have a question regarding a sales contract. The contract

Customer Question

I have a question regarding a sales contract. The contract in question is the standard Purchase and Sales Agreement from the NE Florida Association of Realtors. After the home inspection the buyer has sent me a Repair/Replacement/Treatment Agreement asking for a $3,000 credit at closing.
Lines 328-336 of the original contract state:
If BUYER determines, in BUYER'S sole discretion, that the property is not acceptable to BUYER, BUYER may prior to the expiration of the inspection period:
- terminate this Agreement by delivering written notice of such election to SELLER together with a copy of all written reports of inspections;
or
- submit BUYER'S written request to SELLER for repairs/replacements/treatments, if any, together with a copy of all written reports of inspections. BUYER and SELLER shall have 5 days from SELLER'S receipt of such request within which to enter into a written agreement for repairs/replacements/treatments, failing which this Agreement shall be deemed terminated."
The fact that the seller has sent a repair request would seem to indicate that the property is not acceptable to them. If I simply ignore the request then at the end of 5 days no written agreement will exist. Would that mean that the Agreement (sales contract) is deemed terminated ?
When I told the buyer's agent that I was not prepared to pay any amount towards repairs she stated "Then put zero, sign, and send back. This will keep us in contract." This would suggest that she recognizes that once the buyer submits a signed repair request that a written agreement has to be reached otherwise the sales contract is terminated. Do you think that is the case?
Submitted: 1 year ago.
Category: Real Estate Law
Expert:  RealEstateAnswer replied 1 year ago.
Good evening. It appears some language was left out here " , failing which this Agreement shall be deemed terminated " can you please just double check that you wrote was contained within
Customer: replied 1 year ago.
No, it is correct - the way the text box compresses everything makes it difficult to read.If BUYER determines, in BUYER'S sole discretion, that the property is not acceptable to BUYER, BUYER may prior to the expiration of the inspection period:
(a) terminate this Agreement by delivering written notice of such election to SELLER together with a copy of all written reports of inspections;
or
(b) submit BUYER'S written request to SELLER for repairs/replacements/treatments, if any, together with a copy of all written reports of inspections. BUYER and SELLER shall have 5 days from SELLER'S receipt of such request within which to enter into a written agreement for repairs/replacements/treatments, failing which this Agreement shall be deemed terminated."
Customer: replied 1 year ago.
The fact that the seller has sent a repair request would seem to suggest that the property is not acceptable to them. If I simply ignore the request then at the end of 5 days no written agreement will exist. Would that mean that the Agreement (sales contract) is deemed terminated ?When I told the buyer's agent that I was not prepared to pay any amount towards repairs she stated "Then put zero, sign, and send back. This will keep us in contract." This would suggest that she recognizes that once the buyer submits a signed repair request that a written agreement has to be reached otherwise the sales contract is terminated. Do you think that is the case?
Expert:  RealEstateAnswer replied 1 year ago.
Thank you for the additional information. These are two options which can be exercised,as long as it is done prior to the inspection period being expired. As such, if these requests are submitted to you, the seller, and it can not be agreed upon and worked out within the 5 days, then the contract would appear on its face to be terminated, absent any other terms or conditions, which may have been added. It would appear that what your Realtor is telling you, is to refuse to make any repairs or give any credit and then it would be up to them to decide if they want to proceed or terminate the agreement, if they are still within their inspection time, allowing them to walk away. There is no point in simply ignoring it, since if you sign it like they say and send it back, you can still have the contract and the buyer may want to go forward, knowing you are not doing anything.
Customer: replied 1 year ago.
But I want to terminate the contract - I am the seller.
Expert:  RealEstateAnswer replied 1 year ago.
If you do not want to proceed and sell, then you would sit idle and not respond or sign anything and then after the 5 days, your Realtor would need to send notice advising that the contract has been terminated and you will not proceed to close. They would get their deposits back and each party would walk away.
Customer: replied 1 year ago.
That's how I read the wording of the contract as well - even though they are now saying they will accept $0 instead of asking for $3,000 - the fact that they sent me a Repair Request (signed by the buyers) seems to indicate that that it to be signed for the contract to stay in force or the contract terminates by default.
Expert:  RealEstateAnswer replied 1 year ago.
Based upon what you stated above, that would appear to be the case. If says if an agreement can not be reached within 5 days, that the agreement will be terminated. Of course, they may argue and the entire contract needs to be read, that the "agreement" is the agreement for the repairs NOT the contract, since it does not use the word contract and that they house will remain and be sold "as is" and you will not make any repairs or credits. You need to read the contract as a whole and if it uses the word contract and agreement, the contract may stay intact but there will be no agreement for repair, which is why your Realtor is telling you this. An argument could likely be made by both sides and it would need to be determined if "agreement" is the actual contact or the agreement proposed to repair
Expert:  RealEstateAnswer replied 1 year ago.
I just wanted to follow up and see if you had any other questions or needed me to clarify something. I am here to help, so please let me know. Thanks!