On an inspection yesterday I over heard the agent telling the prospective buyers that if they backed out of the purchase they would lose their $1000.
I don’t know what $1000 they were talking about but one could assume it was their earnest money. I know they signed a inspection contingency because I asked how many days they had with it when booking the inspection. Just asking for my own personal knowledge but that sounds kind of fishy to me. Anyone heard of or seen inspection contingency contracts with such BS stated in them?
You would need to know what context the agent was speaking, backing out for what reason? Inspection reports do not always give the buyer a way out if the seller agrees to fix things or if certain things are operational. Sometimes there are dollar amounts in the contract for problems too.
There are many ways for a potential buyer to lose money/deposits throughout the transaction. Any response to your question would merely be speculation.
I try to stay totally out of any conversations that a buyer has with the salelsman and have no involvement at all in their relationship. In a couple of cases where my clients have later sued their salesmen, this has proven to be a great advantage to me.
Standard RE Contract in Illinois includes inspection contingency. Buyers have 5 days to perform inspection and if there is something that comes up that they don’t like, they can back out and get their earnest money. There are many ways to back out and get your money back. They’re called ‘weasel clauses’.
Jeff
In central Missouri, the buyer can just walk and get their earnest money back because they find out something very small such as a cosmetic issue.
I have seen buyers several time express to their Realtor, that during the inspection, the inspector found too many things wrong with the house. I then here the Realtor say the same thing as in the first post. I have seen Realtors yell and scream at their clients when they want to back out. When a Realtor gets totally out of line, I will protect my client. Other than that, as far as I am concerned, it is not my place to get involved.
Ditto
Furthermore, it is noneya bidness 