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Updated about 4 years ago on . Most recent reply

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Nat C.
  • Investor
  • Miami, FL
473
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807
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Suing seller who backed out of contract

Nat C.
  • Investor
  • Miami, FL
Posted

I had a property under contract and the closing documents were sent to the seller and she seems to be refusing to sign and return. She is ignoring phone calls and clearly avoiding me.

I'm certain that she's changed her mind and seems to think if she ignores me, I'll disappear.

The contract agreement stated that I, the buyer would pay all legal and closing costs.

Thus far I've accrued over $2000 in costs for legal fees, title search and sight survey. The closing attorney told me to sue for costs in the small claims court. Are there any other costs/damages I sue for?

Has anyone else ever had a similar experience?

Most Popular Reply

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Jon Holdman
  • Rental Property Investor
  • Mercer Island, WA
14,127
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22,059
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Jon Holdman
  • Rental Property Investor
  • Mercer Island, WA
ModeratorReplied

Almost all purchase contracts have a section that deals with the buyer's remedy if the seller fails to perform.  That typically has two choices:  liquidated damages or specific performance.  Liquidated damages means the buyer gets the EM back.  Specific performance means the buyer can sue to force a sale. Liquidated damages is the common selection on this choice.  What does your contract say?

If your contract says liquidated damages you can, of course, still sue.  But you're unlikely to prevail.  If it says specific performance you may be able to make a case.  Of course, even if you win, you then have to collect, which is not easy, either.

A stern letter from your attorney threatening action might get some response from the seller.

I have to agree with @Ericka Parrott.  This is just part of the deal when you're buying real estate.  Not all deals close and you often are out the costs you spend prior to the deal falling apart.  It happens in lots of businesses.  Looks like the AT&T/Comcast merger may get blocked and those companies have certainly spent millions of dollars working on this deal.  Sales folks spend lots of time and money courting customers only to never close a deal.  This is just part of what you agree to deal with when you start making offers.

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