Q: We are selling our home and the buyers are purchasing have breeched the contract what can we do?
They have not followed thought on their timelines and keep asking for more money and froze their loan process and we are trying to buy at the same time. We are good to close next week but they won’t follow through on their side is there anything we can legally do? We’ve had to rent a a storage unit for their inspection last minute and had to get an inspection on the home we are buying plus an appraisal.
A:
When you entered into a real estate sale agreement, that agreement became a binding contract. Like other legally binding contracts, if one of the parties refuses to complete the real estate transaction according to its terms, the other party may seek damages for breach of contract.
If the buyer is unwilling to go through the transaction, normally monetary damages is the only remedy granted the seller. The contract may or may not provide for Liquidated Damages. Buyer’s failure to close is a breach of contract entitling the seller to damages. Damages means that the buyer pays the seller to compensate the seller for his losses because of the buyer’s breach of contract. Depending on the circumstances, your costs may include the cost of relisting the property, any real estate commission which you have to pay according to the listing agreement between the seller and his realtor, non-refundable relocation expenses, storage fees, and the taxes and insurance premiums the seller has to continue to pay. If you ends up selling the property to another buyer for less, your damages will include the difference between the two prices.
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