Q: Seller is unable to proceed with closing due to financial situation. What are my rights, and what action should i take?
I have encountered a situation where the seller of the property I am purchasing is unable to proceed with the closing due to financial circumstances. Sellers had already accepted the offer, I completed the appraisal, and the closing is scheduled for next week. What are my rights in this situation, and what actions can I take?
A:
That depends on what your attorney put in the offer about failure to complete the sale.
You DID have an attorney draft the offer, right? Talk with that attorney to review your options. Typically they can include forcing the sale or accepting liquidated damages ... but your question actually raises more questions too.
The SELLER can't complete the contract 'because of financial circumstances'? You mean they don't want you to pay them money? That makes little sense. You REALLY need to talk to your attorney about the details of this strange situation because my 'spidey sense' is tingling that something strange is afoot.
Find a licensed local real estate attorney IN THE AREA WHERE THE PROPERTY IS LOCATED to get you actual legal advice ASAP.
Thomas. R. Morris and Peter J. Weinman agree with this answer
A: Your remedies depend in part upon the terms of the sale agreement. I would need to review the agreement to give a more precise answer as to remedies. You may be able to file a lawsuit to compel the seller to close. That's called specific performance. You may also be able to sue for damages. Perhaps there's a more creative solution, such as addressing the seller's financial problems.
Peter J. Weinman agrees with this answer
A: Your legal rights against the seller's breach will depend on what the provisions in the purchase agreement say as to the available legal 'remedies" that you have against the seller. A poor purchase agreement may only require that the seller return your earnest money deposit to you and nothing more, while a more robust purchase agreement will allow for 'equitable remedies" that may include the right to have a court compel the closing. This is why it is so important to have a real estate attorney reveiw your legal documents before you sign them. While there are great sales people out there, real estate sales agents and title companies are NOT lawyers and cannot provide legal advise. To see more on this topic, go to https://provenresource.com/purchase-agreements
Peter J. Weinman agrees with this answer
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