2007-05-09 03:06:29 · 7 answers · asked by sassy 1 in Business & Finance ➔ Renting & Real Estate
If you have signed a contract to buy a house, then decide you don't want to go through with the purchase, then yes, you could be sued for damages. At a minimum, they'd probably keep your earnest money.
Most purchase contracts have contingencies in them - for financing, and possibly for the buyer being able to sell a current house in a particular timeframe. If one of the contingencies occurs, say you can't get financing as specified in the contract, then the contract is voided and there's no penalty.
2007-05-09 03:11:59 · answer #1 · answered by Judy 7 · 2⤊ 0⤋
I think your question is: if you back out on a contract to purchase a house will you get sued? If that is not correct, can you please add details to your question as it is not clear.
The short answer is yes. Real estate is deemed to be "unique" in the law. That means that someone can sue to have the contract carried out where the other backs out. This is called specific performance and the logic is that there are no damages which can remedy a breach of contract where the subject of the contract is unique. Thus, the court must force the parties to adhere to the original contract terms in order to remedy the breach.
On a practical note, most people do not want to go through a long court battle to force someone to buy or sell a house. That is why the contract usually calls for the earnest money deposit to be retained as damages in the event of breach. If there are other expenditures such as inspection, appraisal, etc. then those damages are recoverable in addtion to the earnest money. In the case of a seller breach, the buyer is entitled to damages or specific performance.
I hope this helps.
2007-05-09 10:14:28 · answer #2 · answered by Anonymous · 3⤊ 0⤋
Can they sue? Probably.
Will they sue? That depends on a lot of things, and one of those things is what your contract says is available as a remedy. You may find that your contract directs you to mediation.
"you find a problem with the house and make it seem like a very very big deal and let them know your not buying the house"
As someone who has done thousands of closings, I can tell you that Mike's approach does not work.
Good contracts have clauses in them regarding inspection issues, and price adjustments as well as repairs are often made. There are also time frames that must be met regarding requests for repairs or credits after the inspection report comes in.
2007-05-09 12:59:55 · answer #3 · answered by BoomChikkaBoom 6 · 1⤊ 0⤋
Assuming you don't have a legitmate reason for backing out--like not getting your financing or a problem with inspection or appraisal, a seller could sue you for non-performance of contract. However, most would probably just keep your earnest money and call it a day.
2007-05-09 10:56:02 · answer #4 · answered by dogmom 3 · 2⤊ 0⤋
no matter what the brokers are telling you they just want to make money off of you you can back out you might loose your down payment but to try to get your money back you find a problem with the house and make it seem like a very very big deal and let them know your not buying the house and you want your money back it might be that the house might not be worth so much or the agent lied that helps the best trick is to get your own lawyer to help not the one that's helping you with the purch but your own personal lawyer who will fight to get you your money back other then money your very much able to walk out on the deal
2007-05-09 12:05:48 · answer #5 · answered by mike t 2 · 0⤊ 2⤋
in california you have 30 days to back out of buying the house no penalty
2007-05-09 10:37:03 · answer #6 · answered by Anonymous · 1⤊ 0⤋
you can be charged a penalty if you back out. It shoudl be in the paperwork that you first signed. Atleast that's how it is here in AZ.
2007-05-09 10:10:19 · answer #7 · answered by NIKK F 4 · 1⤊ 0⤋