Is having a property under contract defaming the title?

[Mike Schorah]

I put a property under contract. The seller told me that he was the executor of the will and had authorization to sell the property. I assigned the contract to another buyer.

I ended up finding out that the seller didn’t have the authorization to sell it.

Later on the seller hired a probate attorney and a month ago the probate attorney told me to back out of the contract. The cash buyer said he wanted to execute our right to the contract.

I was watching a YouTube video that said that if you defame someone’s title, they could sue for big damages. They will break it down on cost per day and their pain and suffering and the biggest part is the lawyer fees.

Is having a property under contract defaming the title or do you need to record a memorandum?