Seller Backing Out Of Contract
My wife and I recently put a contract on a house that had been on the market for 2 months (57 days). We offered the sellers $1000 more than the asking price and did not ask for home inspection or radon inspection. The sellers signed the contract on March 14th and we agreed on a closing date of April 28th.
On March 29th the sellers sent a letter to their realtor indicating that HE was not of sound mind when he decided to sell his house and did not understand the repercussion of selling his home. He also said that he was not able to find suitable housing.
Yesterday April 5th he faxed a contract Release form to his realtor. We did not sign it.
There were no contingencies in the contract for the seller to find suitable housing. Actually there were no contingencies at all! My wife and I still want this house and do not have time to find a new house and close on the 28th. We are now faced with renting a home, storage fees, moving expenses (twice), and moving our 17 month old twin girls twice (once two a temporary home and a second time to a house we purchase).
My thought is that the sellers are bound to the contract. I am planning on contacting an attorney, but I am worried about the time it will take to resolve this. We are willing to take them to court for “Specific Performance” if necessary. It states in the contract the seller or buyer is responsible for any legal fees, punitive damages, etc if any of the terms of the contract are not met. (Some thing to that effect).
Is this worth it? Do we really have a chance, and will a court force them to sell?
[ Edited by laid_back on Date 04/06/2005 ]
[ Edited by laid_back on Date 04/06/2005 ][ Edited by laid_back on Date 04/06/2005 ]
I have read numerous times on this site that no court will force a seller to sell their home if they no longer want to. The best you can do is sue them for your expenses that their actions have caused you. Even then, you are probably in for a long and expensive process.
As stated above, talk to the sellers to find out what the real reason for them no longer wishing to sell. If you can help them solve that problem, you may be able to get the property back. If not, I would take back my earnest money and move on to the next house.
Unless you just want the satisfaction, it is really not worth going after a defaulting seller in court. The only people that really win in that situation are the attorneys.
Good Luck.
JS.
Mr. Seller decided he did not want to sell his house after he spent 3 weeks looking for a rental. Mr. Seller had no intentions of buying a new home. Our original closing date was April 15th. Mr. Seller changed that to the 28th and all parties agreed.
We Close on our home on April 8th (tomorrow) and post occupy until we close on Mr. Sellers house on April 28th. Our lawyer seems to think he can 1. scare him with a threatening letter or 2. file a lawsuit for "Specific Performance". I am not really sure what Specific Performance is, but it sounds good.
I guess we are basically forced to find a rental until we resolve this mess in court. Hopefully a letter will do the trick, but if not we are willing to go to court!
Ask the people who are buying your house if they would consider renting it back to you? Maybe they would just to be nice, and maybe they would if you gave them an $$$ incentive.
Brenda
We have already asked them to rent our house back to us and the longest they agreed to was till the 28th @ $85 a day.
What I find interesting about all this is the fact that Mr. Seller put in writing that he "was not of sound mind when he decided to sell his home" If this is true, then he was not of sound mind from the time he put his house on the market till the time he signed the contract, two months. Now this is the interesting part, he is an MD, Medical Doctor. During this two months he was performing medical procedures, and treating patients. I think in the best interests of his patients a copy of his letter should be forwarded to the AMA (American Medical Association).
Mr. Seller paid our post occupancy bill, and reimbursed us for our appraisal. We were lucky enough to find a similar home that was vacant, so we will not be homeless after all.