March 7th, 2016 at 7:56 pm
Answer: Yes. Last week’s legal tip? dated February 29, 2016? involved a buyer who cancels at the 11th hour, but had not removed any contingencies. If a listing agent demands to know the reason for cancelling, the buyer’s agent should not volunteer just one reason, such as “school district,” because that can infuriate the other side, and most buyers cancel for many reasons anyway. The suggestion last week was for the buyer’s agent to perhaps say, “because of everything,” so as not to pin the buyer down to one reason. Saying “I have not been authorized to share that information” is fine too. Another possibility is to say “the buyer is cancelling under the buyer’s contingencies, and the contract does not require the buyer to give a specific reason.” Unfortunately, these response could? also be upsetting to the other side.
If you are the listing agent in this situation, your seller is likely to get upset no matter what the buyer’s agent gives as an explanation for a last-minute cancellation. To counteract that possibility, be sure that, earlier in the transaction, at the time the buyer’s contingencies are about to lapse, you ask your seller in writing whether the seller would like to serve a Notice to Buyer to Perform to require the buyer to remove the buyer’s contingencies. Also let your seller know that, if he or she does not require the buyer to remove contingencies, the buyer can cancel at the 11th hour without giving us a specific reason.
-Thank you to Terry Canfield for suggesting this week’s legal tip.
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