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Tina
Tina, Lawyer
Category: Real Estate Law
Satisfied Customers: 5436
Experience:  17 years of legal experience including real estate law.
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I have a contract to purchase a home in Georgia dated

Customer Question

I have a contract to purchase a home in Georgia dated 9/28/2016. My first loan was declined on 10/21/2016. My agent notified the seller's agent on 10/24/2016 that I will go through another finance company to obtain approval. In the meantime we asked for an extension for an original 11/4/2016 closing date on 10/24/2016. My agent sent the extension and the seller declined unless I pay $1,000 more Earnest money in addition to the $1,000 that I had already paid. Since I was not certain that I would get loan approval, I let the contract stand. Today I have loan approval and the mortgage is set to close by Friday, 11/25/2016, but the mortgage company just informed me that the seller accepted a higher contract offer yesterday. What should I do?
Submitted: 4 months ago.
Category: Real Estate Law
Expert:  Loren replied 4 months ago.

Good afternoon. I am Loren, a licensed attorney, and I look forward to assisting you.

Do I understand correctly that the contract was never terminated and they are still holding your earnest money?

Are you in compliance with the contract?

Customer: replied 4 months ago.
I am still in the contract and my earnest money has not been released. Keep in mind that we could not come to an agreement about the contract extension terms, but the seller made a verbal agreement to extend the contract to November 30.
Expert:  Loren replied 4 months ago.

Thank you for the additional information.

When there is a written contract, a verbal modification of the agreement is not enforceable (it is called the parol evidence rule) or even admissible as evidence in court.

If the contract was never terminated, though, and you were not in default then the seller has no legal right to enter into another agreement and you can sue for breach of contract.

Expert:  Loren replied 3 months ago.

Did you have further questions? Have I answered your question?

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