Primary Residence Lawsuit Threat

[Simon Cox]

Hi everyone! 

This isn't necessarily an investing related question but rather general life/house-buying advice needed. My wife and I are in the process of buying our first primary residence in Metro Detroit. We were about a week and half away from closing when we realized we just didn't love the house. We attempted to buy from out of state and decided we would rather rent first and make a more educated purchase than rush into a possible mistake. 

We were willing to forfeit the earnest money since we are aware that what we are deciding to do is a real hassle for all those involved, especially the seller. Our agent called us back after speaking with the listing agent and told us the seller is furious and wants to sue us. 

We were a little taken back by this and don't understand exactly what they would get out of the situation. My attorney says this is unusual because anything gained by the prosecutor doesn't justify the cost of litigation. My agent says I should stand my ground and let them try if they want to. 

Anyone have any insight or advice?? 

Thank you!

[Nicole A.]

They're emotional. They haven't actually filed suit. They just are mad and possibly trying to scare you into committing. Was the property under contract I assume? What does that contract say about getting out of it? Your agent should be able to tell you this info. Probably like you said, you'd just give up your earnest money. People need to remember that a deal is never done until closing. A contract doesn't guarantee anything. Perhaps next time say finances fell through rather than "we changed our mind".