If a buyer doesn’t remove their subjects when you’re selling your home and your sale falls through, it is disappointing, to say the least, but is there anything you can do after the fact?
Most homebuyers make an offer with genuine intent to see the purchase through to closing. You may have heard stories of buyers tying up properties with offers, but it’s generally not that common. The buyer’s subjects are in place for due diligence. If the property fails inspection or the lender won’t grant a mortgage, these are legitimate reasons why a buyer wouldn’t be able to remove their subjects. If a buyer doesn’t remove subjects, the sale collapses.
When selling your home, remember there’s a difference between buyers’ subjects and buyer’s three-day rescission period. At the same time, both of these conditions allow buyers to back out of an offer. The rescission carries a fee of .25% of the offer price; in contrast, subjects generally do not carry a fee. The main difference between rescission and subjects is that if a buyer backs out, rescission does not need any reason, whereas subjects do.
The buyer is not obligated to share their personal or financial details as to why they did not remove subjects. Although most buyers willingly volunteer their reason for not moving forward with the purchase. If the potential purchase of your home doesn’t pull their subjects, your home becomes available for other buyers to make an offer. You won’t have any further obligations to the first buyer, and you’ll market your house for sale to find another buyer. As a home seller, having a sale fall through is always disappointing, and it may also be just as frustrating for the would-be buyer.
