Seller backing out! - Posted by madge

Posted by Sparks on October 10, 2008 at 12:59:54:

Madge,

IMHO, you’ve been given two very good options: Option A from Natalie is to file a lis pendens, etc, whereas Option B as suggested by Tye is to take your money and go shopping for another and probably cheaper property.

So, with two viable options, you have choices. That’s not a bad place to be in this market.

But here’s my take. If you really want the house and are happy with the price, pursue Option A and that’s that!

On the other hand, if you are equally happy pursuing either option consider this. You didn’t say what state you are in but here in my state (Texas) the homeowner who has backed out of the deal, having been presented with a qualified buyer (YOU) and having signed a P+S agreement, would still owe the brokers/agents involved their full commission.

So, check with your broker/agent to see if they are planning on taking action against the seller to receive their commission. And, if not, why not?

The answer to this question should at least provide you with some information and intelligence on how they view this deal and whether there is any behind-the-scenes monkey business going on.

Now, if Option B is your choice, you might have your agent/broker quietly pass back some “inside info” to the homeowner that you are prepared to sue for specific performance, but will agree to tear up the contract in return for the paltry sum of $X,XXX as liquidated damages to cover your out-of-pocket expenses of X, Y, + Z, etc. (Of course, you must first look to your P+S Agreement to see if the subject of liquidated damages is already addressed.)

It’s good to have choices in this market! Take a quick survey of your local market and decide what works best for you.

Best of luck with whatever you decide.

Sparks

Seller backing out! - Posted by madge

Posted by madge on October 01, 2008 at 20:16:54:

I sold my house, and now the seller of my new home is backing out, now I AM HOMELESS!! What are my legal rights?

Re: Seller backing out! - Posted by Natalie-VA

Posted by Natalie-VA on October 03, 2008 at 14:06:50:

Contact a real estate attorney immediately to discuss filing a lis pendins and specific performance lawsuit. I did this once and the mere fact of filing the lawsuit caused the seller to see the error in his ways and sign the deed.

–Natalie

You have not sold until it closes - Posted by Rich-CA

Posted by Rich-CA on October 02, 2008 at 22:20:22:

So did the sale close? Did you get your loans paid off, a check for your equity.

If it did not close, why are not still living in the house? Did you let the buyer move in before closing?

Not enough info to help here.

Re: Seller backing out! - Posted by Sailor

Posted by Sailor on October 08, 2008 at 16:43:43:

I had this happen last year & just having my agent tell the seller I
had spoken to my attny did the trick.

However, I’d look at this situation as a potential windfall. In this
market, Madge, you can easily rent a temporary residence while
you cruise for a new home. Prices this week are cheaper than last
week, so you may end up $aving tens of thousands of dollars. It’s
already a buyers’ mkt, & it’s only going to get better for those
who’ve already sold their homes & can move fast.

Note–I’d check on the viability of your financing immediately, as
it could change day by day. You really might be better off renting
for awhile, even though temporarily inconvenient. Good luck!

Tye