Seller refuses to sign extension-Any recourse?

Seller refuses to sign extension-Any recourse?

Member since 2022 · 2 posts · 0 votes

Hello. I'm hoping someone can give me advice regarding a house contract in Texas.  My elderly Father signed a contract two years ago to purchase a house.  It turns out, the house was part of an estate/trust and now some family members are suing the Son that is selling the house.  So, it's been in court for 2 years due to Covid.  We have stayed with the deal and kept signing extensions because we really wanted the house.  Now, as of 12/31, the seller said he was pulling the house off the market and not signing the extension and they are returning the Earnest money.  Do we have any recourse?  If so, what should our next action be?  We understand it truly is in courts but we were willing to wait it out.  At this point, the house is a great buy because the market has changed so much.  So, we feel he is likely going to put it back on the market for a higher price.  Our agent says there is nothing we can do as he chose not to sell anymore and that's his right.  There no longer is a contract so he said the seller is not in breach anymore as the extension ended 12/31.  Are we at their mercy?  Is there a way to have the seller give us first choice (preferably at same price) when he does sell?  I have a feeling there isn't but would love to hear from experts.  Thank you so much for your help.

0Reply
33 views

Most Popular Reply

Investor · Las Vegas, NV · Member since 2013 · 8k+ posts · 10k+ votes
4y

If the members of the trust that sued him and won then he didn’t have the right to sell it, the contract isn’t worth any more than if I had agreed to sell it to you. 

If they lost and If you used a realtor with a real state form, there should be a section that covers penalties for the seller and for the buyer if either party fails to follow through. It will say there if you just recover your money or have the right to sue for performance. If you’re realtor can’t show and tell you this part of the contract, talk to their boss or a real estate attorney. 

See this reply in the discussion

7 Replies

Jump to latestLatest
  • Investor · Las Vegas, NV · Member since 2013 · 8k+ posts · 10k+ votes
    4y

    If the members of the trust that sued him and won then he didn’t have the right to sell it, the contract isn’t worth any more than if I had agreed to sell it to you. 

    If they lost and If you used a realtor with a real state form, there should be a section that covers penalties for the seller and for the buyer if either party fails to follow through. It will say there if you just recover your money or have the right to sue for performance. If you’re realtor can’t show and tell you this part of the contract, talk to their boss or a real estate attorney. 

  • Real Estate Professional · West Palm Beach, FL · Member since 2012 · 23k+ posts · 13k+ votes
    4y

     most contracts give the seller an out if they can not deliver clear title, with reasonable effort.  I would assume any court actions, along with an LP filed, sufficiently cloud the title, so the seller can’t reasonably give clear title.  The seller has no obligation to sign any additional extensions.  Sorry this happened, but that’s the chance you take when there is any litigation involving the house.

  • Eric JansonBusiness Member
    Real Estate Agent · Minneapolis, MN · Member since 2015 · 102 posts · 100 votes
    4y

    I would agree with the above.  Either he does not have the right to sell it and therefore there is nothing you can do or he does and you could choose to sue for non performance, but do you really want to.  I would say to just move on.  Some deals just don't work out, but there is always another one out there. 

  • Realtor · Boulder, CO · Member since 2016 · 3k+ posts · 5k+ votes
    4y

    You would need to consult a lawyer at this point. From my limited experience (as a non-lawyer), judges will rarely enforce specific performance on behalf of the seller/force the sale of a property. 

  • Theresa HarrisPro Member
    Member since 2019 · 15k+ posts · 11k+ votes
    4y

    I'd talk to a lawyer.  You might be able to get right of first refusal if they do put it on the market again.  On the other hand, if they are returning your deposit-I'd also ask for interest and any other fees that were paid (eg inspection, appraisal, etc).

  • Member since 2022 · 2 posts · 0 votes
    4y

    Wow.  Thank you all so much for the quick response.  I really appreciate it.  The lawsuit between the family of the seller is still going on in court so the seller, supposedly,  just decided to pull the house.  I know everything happens for a reason and there are other houses out there.  But, this is a small town in the country and this happens to be in my Sister's neighborhood which doesn't happen very often.  So, that's why we really want it and stayed in for 2 years.  Again, I hope the seller is just finishing up his court case and, when he wants to sell again, he will contact us first but I am not holding my breath.  Also, the house and land is worth at least 50,000 to 75,000 more at this point so that was the other reason we didn't want to stop trying.  Regardless, I knew it was probably a 50/50 shot and might not be worth a court battle but I wanted to see what the options were before we told my Dad the house fell through.  Thanks again for everything.

  • Real Estate Agent · Southington, CT · Member since 2008 · 5k+ posts · 3k+ votes
    4y

    Generally speaking in order to amend a contract both the buyer and seller have to agree to the amendment. 

Join the conversationCreate a free account to reply, vote on answers and follow this thread.