Contract Problems
My partner and I got a house under contract to rehab. We paid the deposit,
paid for home inspections, and mortgage application fees etc. We have just been informed by our realtor that the house was sold. How could this happen, and is it legal?
What recourse do we have?
If you and your partner put the house under contract before the other purported purchaser did, then surely the subsequent sale would be a breach of contract. The law recognizes that real property is unique (no 2 parcels are alike). Hence, it permits a party to sue for specific performance. Assuming you were the first to put the propety under contract, that would mean that you could compel the seller to sell it to you. If you think that it is worth suing over, then I suggest that you speak to an attorney who is versed in real estate or contract law.
Also, review your contract to determine whether you have a "prevailing party" clause in it. This clause would say something to the tune of "in the event that any legal action must be taken to enforce this contract or interpret any provision thereof, the prevailing party will be entitled to attorney's fees". If you see something like this then the other party will be required, if you win, to pay your attorneys fees and, most likely, your court costs.
Hope this helps.
J
kmb4701,
If in fact YOU are the 1st contract...
ON MONDAY
First talk to your Realtor/Agent'sBroker
....and if they LaughItOff...
See an attorney!
.....and get ready to CountYourMoney
....as always,
GoodInvesting, Rocky