Legal Question in Real Estate Law in Illinois
Sellers Rights and Thr Right of Rescission
We have just been informed that the bank that our buyer is dealing with is insisting on a three day right of rescission which means we will not get the money at the closing. She evidently is getting a bridge loan. We think this is unfair, we should not have to suffer because she was unable to secure financing and are refusing to go to the closing unless this is changed. Do we have any rights to protect us, as the sellers, from signing over our house, having her trash it, then saying three days later she doesn't want it. Our lawyer is telling us to be quiet and just go along but it's too late to fire him.
2 Answers from Attorneys
Re: Sellers Rights and Thr Right of Rescission
It's never too late to fire your attorney and you are right to be alarmed. Unfortunately, I would have to review the contract to determine what your rights are.
Re: Sellers Rights and Thr Right of Rescission
My understanding is that the right of recission applies only to refinancings, and not sales of real estate. Your buyer may therefore be obtaining her "bridge loan" with other collateral, not the subject property being sold to you. If that is the case, your buyer can draw down her loan three or more days prior to your close, so the recission period is not your problem. I would have to review your contract to see if your buyer's refusal to close in the circumstances would be a breach.
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