HELP! Legal question on specific performance

[Leslie Lovelace]

We had an active purchase contract on our home with buyers who were paying cash ($495k). However the night prior to closing, my siblings placed a memorandum of interest on our home. (Another long story). They indeed had no interest in our home. 

We did sign an extension to close, but the memorandum was not removed. The buyers requested that we sign another extension, and we decided not to do so. We have asked the buyers to sign a Mutual Release and they will not. The memorandum of interest was removed now, and the purchase could go through, however we have decided to stay in our home at this point. 

The contract expired on December 13th, we we would not sign another extension. Now, they are saying that they want to extend again until January 20th, 2020. 

We are in Kentucky, and our purchase contract does not state specific performance or any other remedy. So my question is, can the buyers sue for specific performance now that the purchase could go through even though the contract expired and we would not sign an addendum to extend a closing? Also, if so, how likely is a judge to force us to sell? And how lengthy of a process is this?

Any help and adobe are greatly appreciated!

[Sean Williams]

@Leslie Lovelace first and foremost I am not an attorney and would suggest seeking legal advice. If you want the names of a few reputable attorneys, just send me a DM and I'll pass another their information.

With that disclosure out of the way, I will share with you my best guess after practicing for 11 years in KY:

1. To my understanding, just because the contract does not explicitly state specific performance does not necessarily mean that those means as a remedy are not available or enforceable

2. How does your contract read in regards to closing? If its "time is of the essence" then essentially your closing deadline is a "drop dead date", however if this language is not included, KY allows for an unwritten "reasonable" extension of timeframe for closing (what's reasonable 1-2 weeks?). If the buyers are still pursuing then one could likely argue the contract is still in effect.

3. Most contracts have a section in regards to how to handle disputes such as "mediation and/or binding arbitration" section for such matters

Keep in mind that when you sign a purchase agreement, and all contingencies have been fulfilled, the purpose of the contract is for both parties to perform and be protected. With each piece of individual real estate being a unique commodity, it important that when executing the contract you know what you are signing up for and what the ramifications could be if you don't perform. Other things most people forget too, depending on the transaction, include:

- real estate commissions that may be due
- inspection, survey and other due diligence fees incurred
- legal fees recouped for the party bringing the claim (should they be proven correct) - plus you have to pay your own

At the end of the day, don't stick your head in the sand if you aren't sure...get with an attorney that practices real estate law!!!