Sellers wanting to sue for liquidated damages.

[Adam Ruiz]

With everything going on, we had to make an unfortunate decision and pull the plug on our upcoming closing. I feel terrible for all parties involved but without a true economic foresight I can't reasonably jump into this new house. I told my agent that we understood we'd lose our EMD. But now the sellers broker put it in their head to sue me for liquidated damages. Above and beyond my deposit. The house needed to have some work done before it should have been listed so we requested it. They claim they didn't know it was an issue but I doubt anyone else would have put an offer without it being corrected. I'm not asking for sympathy but understand it's been a stressful couple of weeks and this is adding to it. I want to do right by everyone involved but getting sued into buying a house is a unmanageable pill to swallow.

Thoughts or advice?

[Aaron Morrow]

Originally posted by @Adam Ruiz:

With everything going on, we had to make an unfortunate decision and pull the plug on our upcoming closing. I feel terrible for all parties involved but without a true economic foresight I can't reasonably jump into this new house. I told my agent that we understood we'd lose our EMD. But now the sellers broker put it in their head to sue me for liquidated damages. Above and beyond my deposit. The house needed to have some work done before it should have been listed so we requested it. They claim they didn't know it was an issue but I doubt anyone else would have put an offer without it being corrected. I'm not asking for sympathy but understand it's been a stressful couple of weeks and this is adding to it. I want to do right by everyone involved but getting sued into buying a house is a unmanageable pill to swallow.

Thoughts or advice?

Hello, adam. I have not read what anyone else has said so I apologize if this has already been covered. I am a local Realtor int he Seattle area. I know each state/MLS's have different forms with different wording. Do you have anything on your purchase and sale that covers options if Buyer Defauslts? On our form it states "Default: (Check only one) 1) Forfeiture of Earnest Money; 2) Seller's Election of Remedies."

99.9% of agents always check the first one so per the contract the seller can only come after the EMD... Does your PSA have an item in it that clarifies this? My clients never check option 2...

Here is another article that might help you on this: 

https://www.lawyers.com/legal-info/real-estate/residential-real-estate/sellers-remedies-and-real-estate-sales-contracts.html

Again, this should not be considered legal advice since I am not a RE Attorney nor to I run my RE license in your state. 

I hope this was helpful!