Q: When can a seller sue the buyer for not following thru on contract?
we are a week away from closing. Bank is ready, all docs prepared and attorney fees paid, etc...
A:
I'm assuming that an options contract was subscribed by all parties. As a rule, the buyer has the entire option term to execute his/her/its option to purchase the real estate. If he/she/it does not execute the option within the term, the seller has the right to retain the options deposit that was delivered upon signing the options contract, and is free to market again the real estate for sale. The most common penalty against a buyer for not going through with the purchase is the loss of the options. The buyer still retains the real estate and can sell it forward to another buyer. If the deposit does not covered legal fees and other expenses incurred by the buyer, you could sue the purchaser to recoup the defficiency.
Another possible scenario where a seller could sue the buyer for not following through with the option would go along the lines of the seller having lost specific alternate sale(s) due to the existence of the options contract. Under this scenario, the seller would need to prove specific monetary loss to go against the buyer
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