Wife and I are both realtors. We also have rentals. We’re under contract to purchase an 8 unit building. All contingencies are settled except one for the seller which he is trying to get us to waive right now so we can close. Closing scheduled for April 3. This would have strapped us for cash in normal times but we had a plan and it would’ve worked. Now we are looking to back out due to the COVID19 PANDEMIC. Most of the tenants work in industries that are shut down and we would not be able to float the payments during this time and the foreseeable future. Newborn at home and other projects being wrapped up, No foreseeable income, we simply can’t take this risk on anymore. The seller has a contingency that he must identify and secure a property for his 1031 exchange, in order for our deal to go through. He has sent an amendment waiving this contingency. We have not signed. We are looking to legally and safely back out of this deal and get our earnest money returned. Please help us in these times! This would’ve been our biggest purchase to date and it’s just too much risk.
I recommend you consult with a real estate litigation attorney in your area, who can review the Offer to Purchase in detail and discuss with you whether they see any options for you to get out of the contract. If there are no options for getting out of the contract, then you could discuss the Sellers remedies for breach of contract and the likelihood that the Seller will pursue them. Perhaps you can make an offer to the Seller to settle in lieu of litigation for a certain amount of cash, or other consideration and you both mutually agree to walk away from the deal. If you reach any such agreement, make sure you get it in writing.
THIS IS MORE OF A POLITICAL ISSUE RIGHT NOW, AND LAWS ARE BEING PASSED DAILY. I WOULD CALL YOUR GOVERNOR'S OFFICE AND SEE WHAT POLICIES ARE CURRENTLY IN PLACE.
