Legal Question in Real Estate Law in Iowa

Purchase agreement hold up in court

We went to a realtor in Aug. to find out about building a home. We told them that we were concerned about selling the old house and making two payments. They said it was their office policy to buy the old house if it has not sold in 90 days or when the house is done being built. We asked to get this in writing and they said no need because it was policy. (our mistake). So now our house hasn't sold and they are now telling us they are not willing to buy the old house and keep threatening to put a for sale sign in the yard of the new home. My purchase agreement states '' closing and possesion to be upon sale of home/new const''. It also states ''subject to sale of buyers home''. Legally can they sell the new house from under us or does this contract mean that they have to hold the new house for us until the old one sells? Thank you!


Asked on 1/24/08, 10:44 am

1 Answer from Attorneys
Thomas Moens Moens Law Offices, Chartered

Re: Purchase agreement hold up in court

I cannot tell from your question if you are buying the new home from the real estate agent, or if there is a seller involved. If there is a seller involved, it would appear that your agreement with them to purchase the home is subject to you selling your old home. Usually there is a date by which you must purchase the new home, or the contract is void. You should immediately contact a real estate attorney. I know that in many parts of Iowa attorneys do a poor job of representing people in real estate transactions by only preparing deeds(which is shameful), but you really need to hire someone who is on your side and represents only you.

As far as the real estate company having a "policy" regarding buying your old home, print out any pages on their website or get copies of any marketing materials, ads, etc. which reference this policy. And as you have already learned, get it in writing!

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Answered on 1/29/08, 12:42 pm


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