Question: Buyer and Seller are under contract. The Seller has been admitted to Hospital. The daughter is communicating that they cannot sell the property because the Family will not be able to proceed now. What should I do?
Answer: This is an unfortunate circumstance, however the following rules still apply. If Seller cannot perform, Refer to section 16.2 of the REPC: 16.2 Seller Default. If Seller defaults, Buyer may elect one of the following remedies: (a) cancel the REPC, and in addition to the return of the Earnest Money Deposit, or Deposits, if applicable, Buyer may elect to accept from Seller, as liquidated damages, a sum equal to the Earnest Money Deposit, or Deposits, if applicable; or (b) maintain the Earnest Money Deposit, or Deposits, if applicable, in trust and sue Seller to specifically enforce the REPC; or (c) accept a return of the Earnest Money Deposit, or Deposits, if applicable, and pursue any other remedies available at law. If Buyer elects to accept liquidated damages, Seller agrees to pay the liquidated damages to Buyer upon demand.
You would use form 49 for the Seller Cancellation and in your circumstance mark “Other,” to describe the scenario, if the Seller has a legal representative to legally sign. In this case the Buyer may accept the unfortunate situation, and walk away from the contract, however they still have the rights described above. The parties could try to settle if there was an “Executor” to Seller’s estate, or someone with power of attorney. The Seller’s estate would still have contractual interest in the Contract. I would suggest having the surviving family members contact their attorney for full legal advise.