REALTORS sometimes ask if they can “bring a terminated contract back to life.” For example, if a buyer paid her option fee and provided notice of termination in accordance with Paragraph 23, can she change her mind and continue with the transaction? The answer is no. If the parties want to move forward, they will need to enter into a new agreement.
The same is true if a contract automatically terminates, such as a contract with the Addendum for Sale of Other Property By Buyer attached. Once the date passes and the contingency is not fulfilled, the contract automatically terminates. If the parties want to move forward, they need to execute a new agreement.
The answer given does not say ‘why’ a totally new contract would be needed… We’ve always been told that any “contract” is based on the intent of the two parties. So if the two parties AGREE on what they want to do, why should a Realtor tell them they can’t do that, and set up a situation where one of the parties may be harmed…? Let’s look at the first example mentioned above, where an issue came up during the Option Period, and the buyer was forced to communicate an intent to terminate due to the time period running out.… Read more »
What if the closing date has come and gone. Can the parties still close?
RICK…. Once the Termination has been sent to the Seller then the Seller could say two days later… “ok… let’s move forward”. So what if, in the meantime, that better Offer for $10K more does come in? What is to prevent the Seller from pulling out that Termination that he has in his hands and “exercising it”. So the Buyer says foul and they go to court and show the doc to the Judge… what do you think is going to happen? I have seen in other posts concerning Option Periods where Agents send a Repair Amendment AND a Signed… Read more »
Why do REALTORS think provisions, conditions & stipulations override a terminated contract?
Termination & Amendment!
That’s right Larry. A terminated contract is a terminated contract. For the protection of both parties a new contract is required. Unless TREC wants to provide us with an Un-termination Agreement. A seller would be entirely within his rights to accept another offer after receiving a signed and dated termination notice.
FYI Colorado has a contract to revive in which you can revive a terminated contract. Pushed your state association because I can see this can get messy
Attorneys can reinstate a contract. How about a scenario where seller terminated because they couldn’t convey clear title due to lien on the house. If seller is able to negotiate and both parties still want to close. There should be a way to proceed if both parties intend to close. This is not really as black and white. There are different scenarios at play that need to be taken into consideration.