Posted by Garrett Sutton on November 10, 2005 at 12:07:04:
Heahter: This is a tough one. Your recourse may be to sue for specific performance of the agreement. Your argument would be that the contingencies were met and as such the buyers must close. But this is a hard road. First, if no earnest money has been paid, they would have the argument that there was no consideration for the agreement. Of course, your argument will be that the consideration was that you took the property off the market for two months. But secondly, your damages do not appear to warrant the expense of hiring an attorney to fight it out. That is the sad truth about our justice system, where legal inequities occur beneath a certain dollar amount for using an attorney. But if you want to fight it I would suggest contacting a local real estate attorney to assist you. Good luck, Garrett
Buyers backing out of a purchase agreement… - Posted by Heather
Posted by Heather on November 10, 2005 at 08:10:06:
What are my options when our buyers are backing out of a purchase agreement?? The only contingencies on the agreement were that they had to acquire financing and contingent on a home inspection. They have acquired financing (at 100%) and any repairs that needed to be done as a result of the home inspection have been done. We are due to close on our new home in a week but cannot do so without the proceeds from this house. We could be losing up to $3000, not to mention the valuable time that has been wasted for the past 2 months by taking our home off of the market with the understanding that these buyers had signed the purchase agreement and all obligations have been fulfilled on our part, the sellers. What legal recourse do we have? (They have not given any earnest money)
Re: Buyers backing out of a purchase agreement… - Posted by Carmen
Posted by Carmen on November 15, 2005 at 22:23:24:
What about going a different route like getting some equity out the house your selling on to close on the new property and maybe doing a lease option on the other house your trying to sell…I know you didnt ask for alternatives but making them buy when they decieded they dont want sounds like a big energy drain.
Re: Buyers backing out of a purchase agreement… - Posted by Brian (UT)
Posted by Brian (UT) on November 11, 2005 at 11:13:18:
Heather
Looks like you have just recieved an education. Rule number one, when selling always get a deposit you can keep if buyers take a hike. Rule number two, when buying and you have to have the money from your previous property to buy, put a clause in the contract that it is contingent upon the sale of the previous property.
A specific performance lawsuit by a seller has a poor chance. but if you sell the property for less than the amount you would have gotten from that buyer you can sue for that amount, and I would let these buyers know that is what you intend to do. I would also let them know that the $3000 dollars you are losing are damages they are liable for because of their failure to complete their contractial duties and you intend to sue for that also.
If they don’t come around, then I would start a small claims court action to recover damages.