The buyers of my house want to back out of the signed contract. What can I do?
They realized new commercial construction was being developed in the fields behind the house.(which has been going on for years now). The closing is in 2 weeks. We have negotiated after inscriptions, etc and agreed to a contract. I’ve been selling furniture and have movers scheduled. Any ideas?
- 8 months ago
You cant force them to buy the house
- curtisports2Lv 78 months ago
You can't force them to buy the house. But you can make them pay a financial penalty for their breach of the contract. The first thing you do is have your attorney send a 'time is of the essence' letter immediately when the date for closing arrives and they do not show. If that doesn't bring them to closing, then you sue them for specific performance. You can sue for any expenses of the sale. You can't sue for replacement of things you sold. You can sue for the real estate commission that YOU owe to the listing broker. YOU owe that commission, the real estate professionals involved did their job and earned the commission. The buyer does not pay the commission but they can be sued to make you whole. In addition, should you put the property up for sale and end up selling it for less the second time, you can sue the buyer for that loss. If their breach of contract caused any purchase you were making to fail and you were sued, in turn, by that seller, you could sue your buyer for what cost you.
Recovering all of those damages is another story. You need to get your attorney involved in this immediately.
- oklatomLv 78 months ago
You have a relator involved, don't you? Start asking some questions of him.
They can back out but you get to keep the earnest money they put down.
- Beverly SLv 78 months ago
You can probably keep the earnest money, and you could try to sue them to force them to buy, but most time judge just lets you keep the earnest money if buyers back out.Source(s): Mortgage lender 33 years.
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- zipperLv 68 months ago
Stick your head in the toilet and inhale deeply! That's what you should do!
- Trivial OneLv 78 months ago
You can't make them buy the house, and it makes no difference how long the commercial construction has been going on, and whether or not they knew or should have known it was happening. Presumably, they made an earnest money deposit on the contract. If they back out for any reason not otherwise covered by the contract (like inspection issues, inability to finance, inability to sell their current home) you keep the earnest money deposit. That is the extent of what you can do. Don't you have a real estate agent and/or attorney working with you on this? They could explain it to you.
- Casey YLv 78 months ago
You get to keep their earnest money if that happens...
You should have a realtor and perhaps an attorney...ask them.
- SlumlordLv 78 months ago
You could sue them for "specific performance", essentially sue them to follow thru on the contract they signed, but its very difficult to force someone to follow thru on a contract if they really want out and have any contingencies at all.
If they have any out from the contract, a financing contingency, anything, then they could probably simply call the bank and tell them to turn down their financing application (which the bank will do without a problem) and suddenly they can get out of the contract and there isn't that much you can do about it. You could refuse to give them back their deposit if its a decent amount of money, you could even agree to let them out of the contract if you give back their deposit - they will still get out of the contract but at least you get something for your time and effort and can begin looking for someone else.
- parsnipiannaLv 78 months ago
They can't just do that. You are entitled to some sort of compensation. Do yo not have an agent?
- Anonymous8 months ago
They have a right to back out of the contract. You can charge them for doing it.