We are being sued by a man who previously had a contract on our home. His contract expired over 3 weeks ago. We signed a contract with a new buyer and we were set to close, and the first buyer put a lein on our property and is suing us now.
Has anyone had experiance in something like this before?
Yes we do have a lawyer.
Just trying to put feelers out there and see if there is a case with presedence.
2007-06-06 06:00:10 · 7 answers · asked by cottoncandy 1 in Business & Finance ➔ Renting & Real Estate
We owe this man absolutely nothing. His "lein" is for the sum of over $8000.00 claiming that he purchased paint for the house, had 2 contractors look at the property, and then charged a large amount per hour for his time and driving expenses.
He has had 2 closing dates, both of which he failed to producing funding for the property. We did not sign an extension after he failed the last time.
Hopefully our lawyer will have more answers today for us. I am so upset about this. On top of it, our 2nd buyer who we ARE under a legal contract with is now involved. :(
What a mess. :(
2007-06-06 06:33:49 · update #1
It sounds like he's just trying to get free property. To put a lien on a property you have to go to the county in which the property is located in, and fill out paperwork. Call the county and ask to see the terms of the lein. He would have had to state a monitary amount that you owe him, or it defaults into a lien on the property. (kind of like small claims court, but with no judge). Once you repay the monitary amount, the lein is dropped. Do you owe him any money? I am in the process of buying a house too, and I know, as a buyer that If i pull out or don't follow terms of my contract as for dates, I lose my earnest money. Is that what he's after??
Good luck, hope you get it figured out!!
2007-06-06 06:28:39 · answer #1 · answered by Silver Thunderbird 6 · 0⤊ 0⤋
As the other respondees indicated, the listing contract should be the governing factor. It is imperitive to get a copy and read all the details. Call the sales manager at the real estate agency and ask for copy if the agent is not forthcoming. There are several types of listing including, but not limited to, single party listing, exclusive right to sell listing, open listing etc. Once this is determined, and the responsibilities defined, the course of action should be clear. Whether a house sells or not, a real estate agency typically has costs associated with a listing agreement. Some costs are part of their overhead and some costs more direct (newspaper ads, yard sighs, document preparation etc.) Negotiating the commission is always an option but be fair.
2016-05-18 01:10:44 · answer #2 · answered by ? 3 · 0⤊ 0⤋
These situations occur on occasion, and on occasion, the first buyer is successful with litigation. Without knowing any particulars relative to your 'expired contract', it's difficult to say whether Buyer No. 1 has a leg on which to stand.
In our state, the state Realtors' Association has drafted a specific agreement called a Consent and Mutual Release Agreement, which specifically and clearly releases both parties to the contract from any further interest, as well as spelling out to whom any earnest monies should be distributed.
The very reason this agreement was brought into play over a decade ago were situations just like yours. In the absence of a signed and notarized CMRA, I always advise sellers to proceed with extreme caution before accepting another offer to purchase.
Your attorney will guide you appropriately in how to legally dispose of this situation, if possible.
2007-06-06 06:41:32 · answer #3 · answered by acermill 7 · 0⤊ 0⤋
This happens a lot actually.
Did you formally notify the former contract holder that you were terminating his contract when he failed to close the second time and the contract expired?
Your case will be much stronger if you did.
My other question is whether you sold the house for a higher price or a lower price than the original contract. this may not be relevant if in fact the old contract has terminated. However, if you sold for a much higher price then equity could get in the way..
2007-06-06 07:13:23 · answer #4 · answered by Attorney 5 · 0⤊ 0⤋
I am a Realtor in Oregon. Without knowing the particulars of the suit and the contract signed with the first buyer it is difficult to tell if the first buyer has any standing. But with the legal system the way it is, anyone can sue for any reason whether it has merit or not. Follow your attorney's advice.
2007-06-06 06:25:17 · answer #5 · answered by caddemd 2 · 0⤊ 0⤋
Let's see, if the contract expired and there was no extension, then, no he can't sue, especially not you. If he had earnest money, he can just get that back. We were in a situation where we had a contract to buy a place and someone else did also, after us, but not before our contract expired and they had already started fixing it up, we decided not to sue because it would have taken too long, but no, if the contract expires, that's it.
2007-06-06 06:06:57 · answer #6 · answered by artbyheather04 3 · 0⤊ 0⤋
hopefully ur lawyer will work through this to remove the lien on the property. dont worry it'll get figured out, peopel get bitter when they dont get their way.
2007-06-06 06:27:21 · answer #7 · answered by spadezgurl22 6 · 0⤊ 0⤋