My boyfriend and i signed the P.A., got approved for a mortgage on the home and set the closing date of the home to this Friday...I have $1,000 in earnest money towards the home..Friday we decided that we dont want to buy a place together and that we need to rent first and that we were jumping into something too fast. We tried to cancel but our agent said the sellers agent will not cancel the agreement and that if we aren't at closing they are going to sue. The home is an estate (i.e. they inherited it by their mother dying)..What can we expect to pay if we get sued? How can we get out of this? We are located in Minnesota! They haven't served us papers yet the sellers agent just said they are going to sue..so who for sure knows???
2007-10-15 09:45:46 · 8 answers · asked by BLoNdE22 1 in Business & Finance ➔ Renting & Real Estate
You need to check with a real estate attorney. I'm not in your state, but I think they can sue you for their costs until it's sold - and then if they sell it at a lower price, for the difference.
2007-10-15 09:50:16 · answer #1 · answered by Quarter Midget Mom 5 · 0⤊ 0⤋
They cannot force you to buy that house. You will definately lose your earnest money but they will not get anything else from you. What do you think happens when loans don't go through?? Did you use an agent to purchase this home? If so, they should be able to help you out of this. If not, contact the financial institution you were going to use and tell them of your situation. They can give you more info.
I'm glad you realized this now instead of after you bought the place. Definately a smart move to rent first.
2007-10-15 09:52:25 · answer #2 · answered by Cate 4 · 0⤊ 0⤋
Are there any contingencies in your contract that will allow you back out of your legal obligations? Did you have an inspection done on the house? Any outstanding areas of negotiation?
Because you do not want to rush into something is not a legal reason to back out of your contract. The seller can sue you for specific performance just like you can sue them to sell you the property.
The real estate agents are owed a commission on this deal. Are you going to pay them?
2007-10-15 10:27:48 · answer #3 · answered by William H 5 · 0⤊ 0⤋
Not sure what Minnesota has for laws but usally you'll lose the $1000 earnest money deposit...You can bet on that...My suggestion....With this guy your dating....make a legal binding agreement to sell this house if you break up..Be adults no calling the cops or throwing fits....You actually could come out ahead as an owner (s) of this home..especially if you bought at a good price...Remember you already stand to lose $1000,be adults and make some money...Don't get nasty with eachother and buy it...
2007-10-15 10:00:34 · answer #4 · answered by overhereyoupretty 3 · 1⤊ 0⤋
You can successfully be sued for breach of contract and/or specific performance to contract. Cate is wrong in that you will only lose your earnest money. There are contingencies in PA agreements which relieve you of contractual obligation if your loan fails to close through no fault of your own. You are now past that point, and I'd venture that all your contingencies are satisfied.
Stick with the information from the first respondent to your question. He/she is right on the money.
2007-10-15 16:29:22 · answer #5 · answered by acermill 7 · 0⤊ 0⤋
I live in PA and here, until you close you can back out of a purchase agreement for any reason. You'll just lose your earnest money.
2007-10-15 09:54:40 · answer #6 · answered by CuriousGeorgine 1 · 0⤊ 0⤋
They can't sue you but you will lose your EMD (earnest money deposit). They are just trying to scare you. Ask them to show you where in the paper work that you signed that you must close or they can sue you. I bet they'll shut up.
2007-10-15 09:57:13 · answer #7 · answered by Anonymous · 1⤊ 0⤋
Tell them you know they are bluffing, all they can do is keep your grand. THAT'S IT, don't let them bully you.
2007-10-15 14:34:47 · answer #8 · answered by frankie b 5 · 0⤊ 0⤋