PH Real Estate - What to Do When You Want to Withdraw from an Impending Purchase

You’re in the process of finalizing the purchase of a house. Everything was going well when suddenly, you received news that your application for a big company in the city - which you have filed years back - was accepted.

It’s a rare opportunity you couldn’t miss. The pay is substantial and the benefits and retirement packages are awesome. Coupled with these superb benefits, there are residential houses offered to workers, which they can pay through a monthly salary deduction scheme.

You have now decided to accept the job offer and withdraw from purchasing the house. In retrospect, you need that money too in establishing yourself in the city.

What are the steps that you should do?

• Call the broker or house owner immediately to inform him of your decision. Discuss with him, in clear terms, why you are withdrawing from the intended purchase. Ambiguity can cause misunderstandings and problems.
  Don’t say:
  “I won’t live here anymore. I’m moving to the city, so I decided not to buy the house.”
  “I need the money because I’m moving to the city.”
  If you explain it in such manner, the broker will be left perplexed. Why, in the first place, did you bother everyone to buy a property in your area, when you were moving to the city?
  You have to appeal to his empathy first, so you should say:
  “I received a job offer just yesterday, from a big company in the city, and it’s an excellent offer I can’t reject.”
  Or say:
  “I really wanted to buy the house but you see, I got a job offer from a company in the city that provides housing units on installment basis. The pay and benefits are also amazing.” The broker would understand that the offer was sudden, and the job means a lot to you. Most likely, you would have awakened his sympathy. You can then proceed to answer any questions he has for you.

• You can meet with the broker or house owner to explain to him personally of your decision. Allow him to ask questions, to clarify issues he cannot understand. If needed, explain again why you want to accept the job.

• Don’t sign any document that would bind you to the broker or owner. If the broker says ‘yes’ but asks you to sign a document – don’t. Why should you sign a document when you’re not going to buy the property?

• Conclude your meeting with a handshake. Don’t leave until the broker is satisfied with your explanations. Reassure him that you appreciate his time and effort, and that you will be endorsing him to other buyers. Remember to say “Thank you” for his effort and time.

What to do when the broker insists that you have to buy the property

• Say “no”. No one can force you to buy a property you don’t want. You can sue him for harassment or intimidation. In cases when he insists that you have a moral obligation to buy the property, tell him you haven’t violated any law, but you can offer your sincere apology for wasting his time and effort. If you have paid the reservation fee, consider this money lost. Unless, there’s an option that states you can get it back. Brokers do not usually give back the reservation fee when the prospective buyer fails to purchase the house. As for down payments, the broker may return the money but a certain percentage would be deducted from it.This is the reason why you should know everything about the house and the contract before paying and signing documents.

• If you have not signed any document or agreement. The agent cannot force you to buy. There are no binding contracts, so he cannot sue you for breach of contract. If he’s threatening to sue you, call your lawyer immediately, so he can solve the problem. Don’t be intimidated. A calm mind can think wisely.
  Example:
  A person wants to buy a watch, so he says to the store owner: “I want to buy a watch.”  Hence, the owner takes out the watch from the display window and hands it over to the buyer. The buyer scrutinizes the item and says, “It’s nice, I want to buy it.” However, when the owner was preparing the watch for release, the buyer changes his mind. This clearly demonstrates that the buyer can withdraw from the purchase without any responsibilities.

• If you have signed a document of agreement, or an ‘intent-to-buy’ document, inform the seller to talk to your lawyer. Consult your lawyer for advice. He may find loopholes in the agreement that can release you from any responsibility of buying the property.

• Express your regret, but don’t be ‘bullied’ into buying a property you cannot benefit from. Well, you can buy the property, do some renovations and sell it again, but that would require lots of work and attention. Most likely, you won’t have time and budget for these renovations.

• Part in good terms with the broker or owner. Settle your differences and part as friends. There may come a time that you might need them again. As the cliché goes: “It’s a small world after all.”

Conclusion
There are a number of reasons why you would like to withdraw from an impending purchase. Whatever the reason, try to settle the issue amicably. Educated men use their brains to settle differences and not their fists.

Explain the reason to the broker clearly, so he can empathize with you. Brokers are human beings too, who have feelings and emotions. Put your feet in their shoes and act rationally. Don’t leave the table until everything is settled.

The crucial thing to remember is that for you to withdraw from buying the property, you should not have signed any contracts or agreements. Put your foot down and say “no”. But do it with diplomacy.

Respect people even if you don’t need them, and they will respect you in return. After all, buying and selling real estate properties is based on trust, respect and honesty.

Tags:    To Do List on Withdrawal from an Impending Purchase