I don't like to harp on the dangers of buying and selling privately, but we hear these horror stories all the time. So, I thought I'd pass one along. Here's a true experience that was brought to our attention recently....
"Mrs. B decided to become an “instant” realtor by selling her home privately and save all that commission. A Buyer was found and the Agreement of Purchase and Sale drafted up by the (“instant" realtor) her lawyer. The offer was conditional upon financing.
Mrs. B decides to purchase a Power of Sale, and asks her lawyer how things are with the financing on her home. Her lawyer advices her that all seems in order and to make an offer on the P.O.S. which needs a “clean” offer to make it go as she is competing against another offer.
Mrs. B now has an agent to put in the offer. Agent asks Mrs. B to make sure she has her house sold. Agent is told that all is OK and to go ahead. (can you see it coming?) Mrs. B’s offer is accepted.
Mrs. B buyer however backs out of the deal on her home, due to (you guessed it) non qualifying for mortgage. Apparently her (“instant” lawyer mortgage advisor) guessed wrong.
Mrs. B still has her house for sale (privately) and owns 2 homes (soon) or will get sued."
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