Q: What happens if someone breaks a real estate contract/intent to sell contract? What are my options
I'm in the process of buying a home from a less than friendly seller (who lives in another house elsewhere). In late Feb 2024 the two of us met to sign a contract which stated his intent to sell me the property, the price, and some other minor details. He hired the lawyer who wrote it up, we both signed, & it was the sellers ideal to have it. Listed on that contract is a closing date of "on or before April 10th". There is a section in the contract as well that states if either party (seller or purchaser) is ready to close the deal but the other party isn't willing, that appropriate action can be taken or that the deal can be canceled by the party which is read to close. I don't want to cancel the deal, since I do want to buy the house. However, when I last spoke to the seller, he said he wouldn't be ready to close by April 10th.
What are my options here? If the contract states April 10th, does it still stand if we close later? How do I prevent him from extending the date any further?
A: It depends on the contract. The escrow deposit is generally forfeited to the seller if the buyer doesn't close on time or apply for a mortgage quickly enough. But, as the buyer, your next step is to schedule a new date to close by and make the date "time of the essence." This will force the seller to clear the title and close. If not, some contracts allow a buyer 'specific performance", which in your case is to compel the seller to deliver a deed.
Todd B. Kotler agrees with this answer
A: There is not enough information to truly answer this question. What are the remedies of a party under this agreement? What are the seller's responsibilities? What are the buyer's remedies? What does "appropriate action" even mean? You really need to have this contract reviewed by an attorney. It would be good investment to pay to have an expert look at this.
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