Have you ever received a contract that was non-contingent on the Sale or Sale and Close of the buyer’s house and wondered if the buyer was being truthful about their financial ability to purchase the house without selling their home? Have you ever complained about buyers making non-contingent contract offers and when their home does not sell the lender declines financing? If this happens to your seller, you may have recourse.
Paragraph 16 of the Central Carolina Realtors contract states that if the buyer fails to disclose the existence of a Sale or Sale and Close contingency and the contract does not close due to the buyer not selling their home, then the buyer will be in default. In this case your seller can seek remedies outlined in the contract.
Additionally, South Carolina Code §40-57-30(16b) holds that an agent must disclose all material facts. A material fact is defined as “information that indicates that a party to a transaction is not able to or does not intend to meet an obligation under a contract or agreement made concerning the transaction.” Having to sell one’s home in order to purchase another is a material fact that must be disclosed by the buyer’s agent. Thus, if the buyer’s agent is aware of the need to sell the house and allows the buyer to make a non-contingent offer, that agent is at risk of discipline by the Real Estate Commission.
Blair Cato announces its’ Fifth Annual CINCO de BLAIR CATO PARTY!!!!! All Real Estate Agents are invited!!! Save Thursday, May 2 on your calendar. And see you at the Tin Roof.
