“Subject to” . . . “Statutory” . . . “Cancellation” . . . Huh?!?
[Note to Readers:The views expressed here are solely those of Ross Kaplan, and do not represent Edina Realty, Berkshire Hathaway, or any other entity referenced. If you need legal advice, please consult an attorney.]
Once in a while, Buyers will encounter a home that can only be sold “subject to statutory cancellation” (marked “A,r” on MLS; the “A” is for “Active”).
What does that status 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 $1,500.
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).
