[WSBARP] Legal Limbo? - Commercial Sale

[Paul Neumiller]

Anyone come across this scenario where the commercial buyer appears to have
a pocket termination because buyer didn't provide the waiver of the
feasibility contingency? 

 

 

 

From: wsbarp-bounces at lists.wsbarppt.com
[mailto:wsbarp-bounces at lists.wsbarppt.com] On Behalf Of Paul Neumiller
Sent: Thursday, May 19, 2016 4:52 PM
To: wsbarp at lists.wsbarppt.com
Subject: [WSBARP] Legal Limbo? - Commercial Sale

 

Fellow Listmates:  Standard Commercial Brokers Association P & S agreement
(CBA Form PS 1A) says that the "Agreement shall terminate and Buyer shall
receive a refund of the earnest money unless Buyer" waives the feasibility
contingency within 10 days.   And, the parties agreed that the earnest money
shall be paid into escrow "within 48 hours of feasibility release."  Buyer
deposited the earnest money with escrow holder.  Now, beyond the 10 days,
buyer delivers a written "Feasibility Contingency Notice" indicating
disapproval and a requesting a return of earnest money.  So, is the deal
terminated because buyer didn't waive the feasibility contingency within 10
days or is there a colorable argument that buyer waived the contingency when
buyer deposited the earnest money.  I can't find anything on this on
CaseMaker. 

 And, yes, I am annoyed with the brokers for letting this slip.  It seems to
me that the buyer had a pocket termination the whole time if no one forced
the buyer to either use or waive the feasibility contingency within the 10
days.  Is my client (seller) in legal limbo?  

 



 

 

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