I'm in the process of selling a small acreage (under 4 acres) with mobile home. Contracts are signed with a closing date set. The buyer had a survey done, the results of which are not apparently finalized until after issuance of a title policy. I have never met the out-of-town buyer but am curious about this theoretical pessimistic scenario: What if the buyer is dissatisfied with any aspect of the survey and wishes to back out/renegotiate price/or demand something else from the seller as a matter of completing the sale? Anyone encountered the same or similar situation? (Also posted to Real Estate Board)
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What if Survey Unsatisfactory to Buyer?
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Last: 23 days ago by Hank the Grifter
On all the lands we have purchased the earnest money contracts all contained a clause that said " dependent on survey results". We never closed on any property we purchased until the survey was completed and we had examined it.
I backed out of two contracts due to discrepancies of survey results. The sellers offered resolves by lowering the prices.
In our two instances the discrepancies were such that money was not going to fix the problems so we exercised our options to back out.
As I said above, we had stipulated the survey results, as a requirement before closing.
I backed out of two contracts due to discrepancies of survey results. The sellers offered resolves by lowering the prices.
In our two instances the discrepancies were such that money was not going to fix the problems so we exercised our options to back out.
As I said above, we had stipulated the survey results, as a requirement before closing.
Sounds like this is still a hypothetical situation, but have you seen the survey yet? Any indication what would show as unsatisfactory?
I wonder if they could back out over anything or no real reason related to the survey if the survey did not show anything they wouldn't have already known through disclosure or inspection.
I wonder if they could back out over anything or no real reason related to the survey if the survey did not show anything they wouldn't have already known through disclosure or inspection.
Curious what the survey showed that caused you to decide to pull out ?
One time was a disputed easement that was not disclosed.
Second time was a particular corner of property that had a stream running through it. Seller said it was on the property. He even had it fenced as his. Turned out it belonged to an absentee landowner and the survey opened up an unbelievable can of worms.
Second time was a particular corner of property that had a stream running through it. Seller said it was on the property. He even had it fenced as his. Turned out it belonged to an absentee landowner and the survey opened up an unbelievable can of worms.
A buyer can walk away from any purchase for any reason he wants too. The earnest money must be returned before the property can be sold to another buyer. I found this out with the last house I sold, the buyer put down earnest money, then decided he didn't like the race of one neighbor and backed out. I refused to release the escrow and hired an attorney. The attorney said that the house could not be sold until the escrow was released.
He said I was pissing in the wind because no court would force someone to buy a property that they didn't want. I ended up having to release the money. Your millage may vary...
He said I was pissing in the wind because no court would force someone to buy a property that they didn't want. I ended up having to release the money. Your millage may vary...
Just curious,
As an RPLS, I've never heard of someone stipulating survey results.
Surveyors report what exists at the time of the survey and must adhere to one or more of many standards of care and accuracy.
Again, I'm not arguing, just a little confused by that statement.
Take care,
As an RPLS, I've never heard of someone stipulating survey results.
Surveyors report what exists at the time of the survey and must adhere to one or more of many standards of care and accuracy.
Again, I'm not arguing, just a little confused by that statement.
Take care,
the pit man said:
A buyer can walk away from any purchase for any reason he wants too. The earnest money must be returned before the property can be sold to another buyer. I found this out with the last house I sold, the buyer put down earnest money, then decided he didn't like the race of one neighbor and backed out. I refused to release the escrow and hired an attorney. The attorney said that the house could not be sold until the escrow was released.
He said I was pissing in the wind because no court would force someone to buy a property that they didn't want. I ended up having to release the money. Your millage may vary...
Was this during the option period, or after the option period expired? Been 20 years since I bought or sold a house, but as I recall the buyer can back out for any reason during the option period, but after the option period expires they forfeit the earnest money if they back out. In the case you described, if it was after the option period I would've been tempted to keep the money and list the house again even if it meant going to court. The court may not force the buyer to buy a house they don't want, but they could tell them they lose their earnest money. Easy for me to say in a hypothetical when it's not my money or house, but I would've been tempted to do so.
I wouldn't take it as arguing at all. I've put a similar clause like that in every rural piece of property we have ever put under contract. An old Aggie real estate attorney in Kerrville advised me on that about 40 years ago.
Both of the instances I stated happened to us here in the Ozarks when purchasing rural ranch land.
Red flag for me was when the title company tried to discourage me from having a new survey done on one of those properties. Sure glad I didn't listen to them.
Both of the instances I stated happened to us here in the Ozarks when purchasing rural ranch land.
Red flag for me was when the title company tried to discourage me from having a new survey done on one of those properties. Sure glad I didn't listen to them.
We have also included clauses in the contracts for farms and ranches we have bought over the years. We have never had any issues but the protection was there. I don't know if it's common for houses on lots but ive never not seen it for acreages, when I was selling farm and ranch real estate.
It's hypothetical (weekender) but began to think about it as I began to dispose of personal property like a lawn tractor etc, Things could become very problematic for any seller if they lose a buyer over a survey --(after an inspection option was included in the contract)-for some reason other than that directly related to the survey (boundary error, structure encroachment etc),
Are you saying that you are not aware of a buyer backout claiming the contents of a survey report (for reasons other than those like or similar to those described by Gunny)?
Yes sir.
I'm confused. If you own the property, why don't you already have a survey of it?
We have surveys of each tract, and if a tract is partially sold, I get a new survey with a legal description of the part being sold And the remainder tract.
We have surveys of each tract, and if a tract is partially sold, I get a new survey with a legal description of the part being sold And the remainder tract.
matureag said:
Are you saying that you are not aware of a buyer backout claiming the contents of a survey report (for reasons other than those like or similar to those described by Gunny)?
I think it was just a misunderstanding/misstatement.
Gunny wrote something like "stipulated the results of the survey". What I think he meant was the deal was dependent on what the survey revealed.
I'm an RPLS as well and had to do a double take at Gunny's comments as well. It's just how we read things.
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