“Subject to” . . “Statutory” . . . “Cancellation” . . . Huh?!?
[Editor’s Note: In addition to “statutory cancellation,” there is another legal status called “subject to statutory Rescission.” At least in Minnesota, purchasers of condo’s and townhomes have a 10 day right to rescind while they review the related Association disclosures. While that 10-day period is running, the convention is to disclose on MLS that “An Offer Has Been Accepted Upon: Subject to Statutory Rescission.”]
Once in awhile, Buyers will encounter a home that can only be sold “subject to statutory cancellation.”
What does that mean?
The home in question has been the subject of a first deal that went south, and the Buyer and the Seller are now fighting over the earnest money.
You know that because one of the parties refused to sign a “Cancellation of Purchase Agreement,” which allows the Buyer to make offers on other properties, and for the Seller to entertain other offers.
In other words . . . for everyone to move on (yes, including the Realtors!).
Send in the Clowns Lawyers
When that happens (which is not often), either party can hire a lawyer and seek what’s called a “statutory cancellation” — a fancy term for getting a court to step in and cancel the contract when a recalcitrant Buyer or Seller won’t.
Usual timetable: about 2 weeks.
Cost: around $1,000.
Without knowing any more details, all you can really infer are that: a) the original deal had a major issue (or several); and b) the Seller and Buyer are at an impasse (to put it politely).
