Should l cancel the sale deal with the sister?

[Fleiss]

Hi, l decided to sell my apt. to my sister- who lives in another city- about a month ago. She really wanted my place when she heard l was going to put it up for sale. Although l’m not rich, l gave her an 8% discount (= €5000/$5600), as a result of our close relationship. 

From the very beginning, l told her that I need all the money once we sign the sale contract because l’m dependent on it to buy another home. Three weeks ago they ago they applied for a bank loan. On Monday it became clear that the bank would lend 78% of the sale price. The rest (€11 000/$ 12 600) they were going to try to either borrow from their neighbor’s son who lives abroad or my oldest brother. 

On Wednesday the bank loan officer told us we could finalize the contract sale today (Friday). When l texted my sister yesterday early evening whether they were on the way she replied they weren’t coming because they hadn’t asked the neighbor’s son for the money, as the transfer fee was too much. (Really!) And that they were going to ask my brother just then. I texted back saying: “You left that for the last minute. Very good then”. My BIL neither called nor texted any apology or anything.

They both knew that these very recent days l have been really close to getting a really good apt.- me considering two different places. But now without the money from the bank l can do nothing.

Since last evening l have felt pissed off, taken advantage of, and away too angry at myself for being so stupid. On the other hand, even though l might miss the chance to buy this nice apt, l highly feel like canceling the deal with my sister unless they come until noon (today). 

Should l do that? Thanks.

 

 

Edited January 14, 2022 by Fleiss
Addition

[Happy Lemming]

I've done some seller financing of homes to people.  The deal is the deal, if you can't come up with your end of the money, the deal is off and I'll sell it to the next person. 

You tried to do a nice thing for your sister and it blew up in your face.  Apparently, she really didn't want the apartment as bad as she let on.  If she had, she would have been shaking every tree (twice) looking for the money.  If she is balking at the transfer fee, that is an excuse, in actuality she (and her SO) really don't want the apartment.

Cancel the deal, now... and sell the apartment for market value.  You gave her a chance at it and she failed, its done and over with.  Tell her the deal is off and document it. 

Try to find a month-to-month place to rent until your apartment sells to a buyer that can afford it and qualify for the loan.

[Happy Lemming]

Being in the UK, this line is probably lost on you, but for those of us older individuals in the United States, I had a line I used repeatedly.  When I was a landlord and the rent was due or when I financed a house and the people couldn't make the payments... I used the same line over and over again:

"I'm not Monty Hall and this isn't 'Let's make a deal'!!"

[Fleiss]

15 minutes ago, Happy Lemming said:

Being in the UK, this line is probably lost on you, but for those of us older individuals in the United States, I had a line I used repeatedly.  When I was a landlord and the rent was due or when I financed a house and the people couldn't make the payments... I used the same line over and over again:

"I'm not Monty Hall and this isn't 'Let's make a deal'!!"

I live the Balkans. Sorry I don’t quite get the meaning of your last sentence (quote).

[Happy Lemming]

2 minutes ago, Fleiss said:

I live the Balkans. Sorry I don’t quite get the meaning of your last sentence (quote).

I understand, I didn't think you would have heard of Monty Hall... He was host of a game show in the '60's and '70's, where he'd make deals with people to try to give away prizes.

At the end of the day, you did try to help your sister... it didn't work, so just move on and sell the apartment to someone else.

 

[Fleiss]

I talked to them on the phone, and gave them a deadline Monday, 09 am at the bank - since tomorrow and after tomorrow the bank is closed - to finalize the deal with the notary public, as well. If they cannot make it timewise or moneywise, then  I'll cancel the whole thing. 

[Fleiss]

Update: 

Hi again.. The bank procedures are coming to an end.  Now,  I'm buying my new apartment, which is not only devouring my entire savings, but I also have to borrow money. In this regard, my sister asked her neighbor if he could lend me 8000 pounds ($ 10,814) for 1 year. The neighbor agreed to do that interest-free. Most of this money will be used to finalize the payment for the new apartment, and only a bit for furnishing it (painting, appliances, etc.)

At the beginning, when I told my father that I gave a good discount to my sister -- I didn't tell tell him that it was at least $ 5000 -- he said I did the right thing. But, last night, when my father  heard that I even had to borrow money for the new apartment, he felt sorry for me and suggested that I should get all the electrical appliances  from  the existing apartment because, all things considered,  the discount to my sister would still be satisfactory. In a similar light, my sister told me once in passing that if I wanted to get something I could.

I feel a bit conflicted: on the one hand, I agree with my father and feel like telling my sister that since I didn’t expect my new apartment to be so expensive, and considering my financial situation right now, I would like to get most of the appliances from [her future] apartment. On the other hand, I feel that such a request on my part would be like hitting her below the belt.

Should I do what my father suggests? Thanks.

[Wiseman2]

17 minutes ago, Fleiss said:

 suggested that I should get all the electrical appliances  from  the existing apartment . I didn’t expect my new apartment to be so expensive.

What do you mean? Refrigerator, oven, washer, dryer, etc?

Has she paid you for it yet? If so most sales are as is. Not "I need to gut the place because I was unprepared for the expenses of my new place".

It's unfortunate you bought a place you can't afford but gutting the apartment you sold seems like your father's bad idea because he doesn't want to lend you money .

When money and goods exchange hands, it's a contract, even if family is involved. 

It's like selling a car, then buying one you can't afford, then coming back and asking for the tires, steering wheel, etc. to recoup the faux discount.

 

 

 

Edited January 24, 2022 by Wiseman2

[Fleiss]

18 minutes ago, Wiseman2 said:

What do you mean? Refrigerator, oven, washer, dryer, etc?

Has she paid you for it yet? If so most sales are as is. Not "I need to gut the place because I was unprepared for the expenses of my new place".

It's unfortunate you bought a place you can't afford but gutting the apartment you sold seems like your father's bad idea because he doesn't want to lend you money .

 

 

 

Yes, I mean these,  at least the fridge, washing machine, and the TV set. 

We have already signed the contract at the notary public. They have paid 1/6 of the money in cash, whereas the rest I will get from the bank , once the bank has it ready. On a separate note, I didn't ask my retired father to lend me money because he doesn't have any. So, this is not the point. 

Edited January 24, 2022 by Fleiss
Addition

[Wiseman2]

21 minutes ago, Fleiss said:

Yes, I mean these,  at least the fridge, washing machine, and the TV set. 

We have already signed the contract at the notary public. They have paid 1/6 of the money in cash, whereas the rest I will get from the bank. 

Re-read the contract, especially if a bank/mortgage is involved and a 16.6% down payment was made.

As far as furniture, that may be fine but you want to gut the place.

Edited January 24, 2022 by Wiseman2

[Fleiss]

2 minutes ago, Wiseman2 said:

Re-read the contract, especially if a bank/mortgage is involved.

As far as furniture, that may be fine but you want to gut the place.

Yes a bank/mortgage is involved .  Regarding furniture, could you please explain to me  what you consider "that may be fine", and what you mean by "but you want to gut the place"? 

[Wiseman2]

4 minutes ago, Fleiss said:

Yes a bank/mortgage is involved .  Regarding furniture, could you please explain to me  what you consider "that may be fine", and what you mean by "but you want to gut the place"? 

You'll have to re-read the contract. It should be explicit in what precisely the sale includes. If you have questions, you could ask an attorney in your jurisdiction about what is included in the sale of real estate transactions.

[Fleiss]

6 minutes ago, Wiseman2 said:

You'll have to re-read the contract. It should be explicit in what precisely the sale includes. If you have questions, you could ask an attorney in your jurisdiction about what is included in the sale of real estate transactions.

I re-read the contract. It doesn't make any mention of whether the place is sold furnished or not.  What is stressed there  is the apartment's interior space, and its sale price..   

Edited January 24, 2022 by Fleiss

[spiritedaway2003]

Everything depends on the terms of the contract. 
In many real estate deals, a property may be staged for open house but most do not sell “furnished”, meaning there is no expectation that furniture, TV set would stay.  Generally speaking, permanently attached appliances stays unless it is disclosed otherwise. This usually include the stove, fridge, microwave and washer and dryer (I have seen a mixed bag with the latter but again it is typically included if it is there unless explicitly disclosed that it would not be part of the sale)

You may need to revisit your budget and how much you can afford. It seems concerning that you have to borrow money from your sister’s neighbor. Make sure you beef up your savings and that you are not bending over backwards to make it work only for your sister, while putting yourself in a precarious financial position.  Make sure you can cover for unexpected emergencies.

[Fleiss]

19 minutes ago, spiritedaway2003 said:

Everything depends on the terms of the contract. 
In many real estate deals, a property may be staged for open house but most do not sell “furnished”, meaning there is no expectation that furniture, TV set would stay.  Generally speaking, permanently attached appliances stays unless it is disclosed otherwise. This usually include the stove, fridge, microwave and washer and dryer (I have seen a mixed bag with the latter but again it is typically included if it is there unless explicitly disclosed that it would not be part of the sale)

You may need to revisit your budget and how much you can afford. It seems concerning that you have to borrow money from your sister’s neighbor. Make sure you beef up your savings and that you are not bending over backwards to make it work only for your sister, while putting yourself in a precarious financial position.  Make sure you can cover for unexpected emergencies.

Legally speaking,  as I said above, the contract doesn't focus on furniture at all. On the other hand,  before signing the contract and prior to me deciding in favor of this expensive apartment, I had told  my sister  that I would like to take  two of the paintings I was most attached to. Back then I didn't mention other items..  

Now,  to be clear,  I'm not interested  in taking furniture per se, such as:  tables, chairs, beds, desks, dressers, rugs, and cupboards. As I stated above, I might just consider the fridge, the washing machine, the TV set,  [and  maybe  the AC]..

Edited January 24, 2022 by Fleiss

[Happy Lemming]

2 hours ago, Fleiss said:

I might just consider the fridge, the washing machine, the TV set,  [and  maybe  the AC]..

Those things are quite heavy, have you figured in the shipping cost??  It may not be worth it to ship them. 

For me, whenever I sold a house, I always left the kitchen appliances and washer & dryer in place.  In one home, I left the TV as it was part of a hard wired surround system.  The husband really liked the whole setup, so I left it in place for him to enjoy.

If the house had window A/C units, I left them in place, as well.  Again, those things are heavy and not worth shipping/moving.

 

[Pumpernickel]

8 hours ago, Fleiss said:

my sister asked her neighbor if he could lend me 8000 pounds ($ 10,814) for 1 year. The neighbor agreed to do that interest-free.

I want this neighbor. Just saying.

[Fleiss]

4 hours ago, Happy Lemming said:

Those things are quite heavy, have you figured in the shipping cost??  It may not be worth it to ship them. 

For me, whenever I sold a house, I always left the kitchen appliances and washer & dryer in place.  In one home, I left the TV as it was part of a hard wired surround system.  The husband really liked the whole setup, so I left it in place for him to enjoy.

If the house had window A/C units, I left them in place, as well.  Again, those things are heavy and not worth shipping/moving.

 

In my case, taking them would be really cost effective because the distance is very short -- just a 5-min drive.

[Fleiss]

11 minutes ago, Pumpernickel said:

I want this neighbor. Just saying.

Yes, you’re right - l was surprised, too. But I’m going to return a bit more to him, as a mark of appreciation.