Hi,

We sold our home this Feb. We have exchanged contracts with the buyer (only condition was home inspection, which went smooth, with mention of minor repair to the roof leak). The move in date was set for June 3rd week.

Based on the above deal we have bought a new place.

Now the buyer has contacted my real estate agent stating that their bank wants to valuate the property. ( i am not sure why now?)

I would like to seek advice, can the buyer pull out of the deal now?

Thanks for your time

Regards,
Crisraj

Quote:

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Originally posted by crisraj

Hi,

We sold our home this Feb. We have exchanged contracts with the buyer (only condition was home inspection, which went smooth, with mention of minor repair to the roof leak). The move in date was set for June 3rd week.

Based on the above deal we have bought a new place.

Now the buyer has contacted my real estate agent stating that their bank wants to valuate the property. ( i am not sure why now?)

I would like to seek advice, can the buyer pull out of the deal now?

Thanks for your time

Regards,
Crisraj

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Is it appraisal by bank ?
If this condition was not mentioned in the buyers/sellers agreement, you need not bother.

mk11

The appraisal or valuation of the property has nothing to do with you. It is between the buyer of your place and the lender. Generally if the buyer is taking a conventional mortgage (means putting 20% or more down payment) the bank would like the property to be appraised and the bank would put this as a condition in the mortgage. So, the buyer has to fulfill that condition and it is normal so you do not need to worry. The buyer is not going to pull out of the contract even if the house gets appraised for less than the purchase price as he/she has already signed a contract with you. You only need to provide access to the appraiser / valuer to the property and thats the reason they have contacted you.

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Pramod Chopra
Senior Mortgage Consultant
Mortgage Alliance Company of Canada

Thanks Guys for your time and advice.

I was bit worried that the buyer might use the bank valuation to re-negotiate the price, which I cannot afford at this juncture (4 wks to notary) as I am in chain (Meaning I am selling this property and investing the gains in the new one)

Regards,
Crisraj