Help with ur advice...couldnt complete escrow, losing money and facing lawsuit.. what are the options??

Question

My daughter and her husband are going thru a rough patch. So my daughter decided to move out and buy a house on her own. Everything was going fine until we found that her husband also has to sign a waiver form on the property. Not sure who is responsible to notify us regarding this but We were not aware of this until the last moment. Now my son-in-law is not ready to sign the waiver. Now the seller and his agent are planning to sue my daughter because we are unable to close the escrow. We tried to negotiate with my son-in-law but things did not go well. Can anyone help us here and tell us the options we have right now. we certainly dont want the lawsuit and we are already losing money that was paid as deposit for the contingency period...

Answer 1

I don't understand this. It sounds like the husband and wife have separated. What law requires a separated husband to sign a waiver on property that the wife is buying on her own? Or was she still with him when she made the purchase offer? That might complicate matters. What jurisdiction are you in? Can you call the nearest law school and ask if a student can look up appropriate law? Some law schools will take the odd problem like this as a learning exercise. They don't act as lawyers, but can sometimes supply the appropriate laws. Some law firms offer a free initial consultation as well. That could be a course of action to investigate. 15 minutes free with a lawyer may point you to a solution. Good luck

Answer 2

I doubt that they will sue. Usually when a deal falls through, the earnest money is pretty much the limit of what the Sellers can get.

Now, it really depends on what the contract said and who signed it. If your daughter signed it alone, AND it had a contingency for being able to get financing, AND she's unable to go through because they won't finance it without hubby's participation.... then not only will they not sue, she MAY be entitled to her earnest money back (she'd have to have notified them properly within the required period.)

It's most likely that she didn't do that, but that the contract limits the Seller to keeping the deposit in a case of Buyer's breach.

Someone wants her to sign a document forfeiting the deposit. I wouldn't rush to sign it. What's common around here is for Buyer and Seller to split the deposit, even when one side is clearly in breach, because no one wants to go to court over a few hundred dollars.

Answer 3

What type of waiver?
She will be "sole owner"?

Your RE agent and/or the title company should have kept you informed, BUT the onus is on you to have been in touch with all involved - right up to closing.

There may be some type of "unforeseen condition" contingency in the contract.
Next time you'll understand that it's in your best interest to have as many contingencies as possible.

You already know that you'll receive answers directing you to a RE attorney.
That said see if you can hire one on a flat fee basis to investigate the options and contract.

Search Martindale Hubble for an attny. that specializes in RE and is located in your area.

Best of luck