Closing on my house sale in 2 wks. I have moved into a six month rental while I wait for my dream house to be available June. (I'm under contract to buy that house and have put in about $3K in earnest $) Last nite my realtor tells me that buyers are getting a divorce and may NOT go through with the closing! My realtor says that this is an ENFORCEABLE contract because they don't have the two escape hatches (financing and inspection) to justify backing out. I also have a lawyer who is ready to work on my behalf as soon as my realtor faxes him all the contracts for his review. In the meantime, I AM SICK over this. In so many ways I have proceeded as if this house sale is going through, from moving out, moving into a rental, selling furniture, BUYING stuff I figured I'd pay off at closing when I have the cash. I am so upset and have every intention of making it very very difficult for these people to get out of the contract. But can they?
2007-12-20 00:08:39 · 7 answers · asked by willowshines 2 in Business & Finance ➔ Renting & Real Estate
Hope you have a lot of time and money for such a suit. Not discouraging you but being realistic.
The things you did in anticipation are your expenses, no one forced you to move or buy stuff. A sale is not a sale until the funds are in your bank account.
Depends on how the contract is worded as to how much you might get from such a suit.
Yes, another really GOOD REAL ESTATE Attorney can get them out of the contract.
2007-12-20 00:18:39 · answer #1 · answered by Anonymous · 1⤊ 0⤋
You're dealing with a sad scenario here. Legally, you are on solid ground, and can sue for either specific performance, losses/damages incurred, or both. You will most probably win such a suit. HOWEVER, reality is quite different. Winning the suit and getting money out of winning it are two very different things. Given that there is a divorce pending, these folks are NOT going to buy this house unless they have a pile of cash with which to do so.
Further, if you sue for specific performance and win, you can't sell the property to a different buyer, simply because these first buyers COULD end up buying the house. You have a judgment which says they must. What will you do if they actually decide to go through with the orders of the court, and you have sold the property to someone else?
2007-12-20 08:30:55 · answer #2 · answered by acermill 7 · 1⤊ 0⤋
Every Realtor I have ever talked to says the seller usually doesn't sue the buyers because the legal costs make it not worthwhile. So yes, you can sue to enforce the contract, but if the couple DO divorce and can no longer therefore afford the house, you will have a judge order them to pay you, but they just won't be able to. You will have spent a fortune on the lawyer and have nothing to show for it.
I think you are doing the right thing, trying to "scare" them into fulfilling their contract, let them buy it and then sell it and THEN divorce. It may or may not work. I don't know if it will be worth it for you to keep going if the scare tactics don't work.
Good luck!
2007-12-20 08:22:11 · answer #3 · answered by gingerdaisy43 3 · 1⤊ 0⤋
If your buyers are going to proceed with the divorce the only thing that comes to mind is that they will be able to get out of the contract legally due to one of them having to qualify for a loan. It doesn't take a couple to buy a home,just one who would qualify. You agent is wrong because the lender will just take a new application for whomever wants to try and buy the home anyway. Divorce proceedings must take place and you do not know if they have notified the court of the purchase of the property or not. Right now you are going to have to wait and see if the divorce is going to take place or not which delays your situation. The court may tell them that one has to buy the other out in this case.
2007-12-20 08:45:17 · answer #4 · answered by Anonymous · 0⤊ 0⤋
I don't know. I hope that your attorney can work things out.
We had someone back out on our closing before for a similar reason. If they are single, they may not individually qualify financially, assuming that the couple are both working.
Closing dates are not written in stone, so they can also play the game with you and continue to push back closing until you lose your dream home also. It may be easier to tell your realtor to get out there and start searching for a back up buyer.
Good luck, I hope everything works out for you.
2007-12-20 08:23:08 · answer #5 · answered by Anonymous · 2⤊ 0⤋
adding to the info provided by jackie and acermill
You go to court having spent lots of money to do so and get your judgment and they file for BK to get rid of the judgment. You are out thousands of dollars and end up with nothing.
2007-12-20 08:37:09 · answer #6 · answered by Anonymous · 0⤊ 0⤋
Realistically, there's not much you can do except get your earnest money/deposit back. You could sue for your incidental expenses, but it would probably cost you more to do it.
2007-12-20 10:20:56 · answer #7 · answered by npk 7 · 0⤊ 1⤋