Things fell apart over the weekend...

[Stormy]

We were set to close on May 2nd. There are some difficulties in underwriting and the closing will be delayed about 3 to 4 weeks. While we weren't happy, it also isn't horrible. However the lady selling us the land flipped out!!! And now may not agree to another land contract. She did have a phone call with manager at PH that did not go well at all. She acted very unprofessionally cursing at him and hanging up on him.
She is a realtor, but the land she is selling us is her personal land. It is three acres, no imrovements We are paying $20,000, with a utility allowance of $1000 given to us at the time of closing. It's going to cost about $4500 for the water, about $3000 for the electricity, plus septic, driveway, and foundation.
She has said to me many times, that she could get more for it, ...her dil really likes it, and ...she's had 2nd and 3rd thoughts about selling at that price. She also told me that she may have the water put in and then sell it for more later. When I last talked to her, she was calling the title people and consulting attorneys today to make sure her rights are protected.
When I questioned her about why she needed to do all this and exactly what she needed to find out, she said she was being vague on purpose. So we find out this afternoon what she is going to do...

We have a signed land contract the she made up. Can she just back out like that because of a delay? Can she decide to sell it for more after she already commited to us?? Is there something 'etically' wrong with her selling her own land and writing the land contract since she is a real estate agent ? Is she worried about losing her license and is using the delay as an excuse to back out??

We really want this to go well, because if we take the land, her kids will be some of our neighbors. Dh and I are upset about it all. We didn't want the delay, and we most certainly did not want to lose the land. We both really like it and it was jsut perfect for us.

The good thing is Palm Harbor is really working well with the situation. I am pleased with how they handled things. So even if the worst happens, and we can't buy that land, they've already started looking for other land for us.

So now it's just wait and see...

[rmurray]

"Can she just back out like that because of a delay? "

Depends on the closing date in the contract...If the contract calls for 5/2...She can decide not to sell the property after that..Or ask you for more money...After 5/2...she can sell it to any one at any price she decides..

"Is there something 'etically' wrong with her selling her own land and writing the land contract since she is a real estate agent ?"

Every state has different real estate laws...but in most she can sell her own property if she discloses her ownership...which obviously she has..

I wish you the best of luck

[Stormy]

"Depends on the closing date in the contract...If the contract calls for 5/2...She can decide not to sell the property after that..Or ask you for more money...After 5/2...she can sell it to any one at any price she decides.."

The closing date was 5/2.
I think that is what she is going to do. I think she'll either ask us for more money, or sell to someone else at a higher price.

Dh and I have already discussed the option of paying more and decided we would not. Unimproved land in that area appraises at $5000 an acre. We were already paying $6333. We will go no higher.

Thanks for the information. I really appreciate all the advice you give here.

[Lynne Stewart]

We had a similar situation. Im our case, the PH place paid the mortgage payment for the next month, giving us the extra week we needed for close. But, we ewre lucky that in our case, her immediate worry was that payment and not the overall price of the land...

[Stormy]

It was as I expected, she had new terms, which involved more earnest money up front, and a higher price for the land. We chose not to agree to these new terms. Soooooo, we are land hunting again.

It looks as if we'll be able to close the end of May. I can't wait....

[rmurray]

Not to throw water on your parade....but if you change land and figures you will be starting all over again...You will need to chose the land, get a contract (be smart this time and request closing date 60 to 90 days from now), have a title search done and a new appraisal done...Then there is perq tests, permits...the list goes on...I would guess you are fully 8 weeks from living in a home...you might close a construction loan sometime before this...