Sterling Heights, MI asked in Real Estate Law for Michigan

Q: seller breaches occupancy stay in closing contract, can I sue for the initial 30 days given prior to breach?

bought a house, in closing agreement I was giving seller 30 days free occupancy, seller needs more time but isn't willing to pay or trying to pay only half of the mortgage price per day. Can I sue for price of mortgage per day past due date and the 30 days initially give due to the breach?

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1 Lawyer Answer
Kenneth V Zichi
Kenneth V Zichi
Answered
  • Fowlerville, MI
  • Licensed in Michigan

A: You can SUE for anything.

WINNING the suit is another issue all together.

And even if you win, it may not be worth it.

That may sound flippant, but really, it is far more important to consider ALL the implications before jumping to a lawsuit, and that is why "DIY" small claims are rarely a good idea for significant issues -- like this one is.

The problem I see is that you gave them 30 days 'free' so there is no easy measure of damages here. The PITI (Principal, Interest, Taxes and Insurance) are kind of a 'standard measure' of damages for holdovers after a real estate sale, but the argument is that the first thirty days should NOT be added in since that was part of the deal. It is only after the 30 days. And then there's delay caused by litigation.

If I were looking at this case walking in the door, so to speak, I'd probably treat them like a 'holdover tenant' and file the Landlord/Tenant 'termination of tenancy' action, ask for the 'rent' (PITI) due starting from day 30 and get them out, unless there is some more drastic damage going on. Bear in mind that process can take up to 40-60 days to complete and with the Courts being in a backlog because of the shutdowns it may take longer.

IF THERE IS ANY other way to resolve this, I'd work towards that. WHY aren't they out? Issues with the lockdown causing delays? They may be getting more sympathy and you won't 'win' much. What is this doing to YOUR plans? Can you work to alleviate some of that pain in some other way?

Bottom line: Yes you can sue. You will probably "win" (but note those quotes!). It will cost you a lot to prevail.

Whether or not that cost is worth it is something you need to go into with eyes open so you aren't disappointed.

I strongly urge consulting with a local real estate/landlord tenant attorney.

-- This answer is offered for informational purposes only and does not constitute legal advice or create an attorney/client relationship.

I am licensed to practice in Michigan only. Please seek competent local legal help if you feel you need legal advice

Brent T. Geers agrees with this answer

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