2 contracts on the same house??? - Posted by Terry (Houston)

import · June 23, 2000, 8:27pm

Posted by Terry (Houston) on June 23, 2000 at 23:26:48:

I was the ‘buyer’ on that house in Greenville if you can remember that one. Just relocated here to Houston Short world but here I go again it seems. I will for certain get all the appropriate back ups needed in the event it falls through.
thanks
Terry

import · June 23, 2000, 8:27pm

Posted by Terry (Houston) on June 23, 2000 at 20:27:19:

I have a perplexing scenerio.

I went under a ‘subject to’ contract on a house yesterday. The owner informed me that one other contract fell through due to her inability and refusal to come up with $3,000 at closing. I did not have a warranty deed sighned because it was too late at night for a notary and was going back today to get the house deeded to me.

During the course of due dillegence, finding out that the back payments had to be made up, that the taxes needed to be paid from 98, I found out from the title company that the escrow account for the initial sale was still valid.
They were supposed to close by today but did not. The escrow company still needs a sign off from the owner.

There is plenty of equity to make a great deal, even though I am not crazy about making up the payments and taxes.

My question is this:

If the original buyer wants to play the “who wants to SUE for specific performance?” game, where does that leave my contract taking the house subject to?

I will not balk at the original buyer, it is not their falt we both found a flake.

But do i have another option I am missing.

If I filed a memorandum to cloud the title would it do any good or just mess up the original buyer which again I do not want to do.

Thanks again in advance
Terry

import · June 23, 2000, 10:48pm

Re: 2 contracts on the same house??? - Posted by Bud Branstetter

Posted by Bud Branstetter on June 23, 2000 at 22:48:56:

Since you are in Texas I can relate what I have experienced. Texas courts are homeowner friendly. The contract the other buyer signed with the homeseller probably did not specify that they were still responsible for the payments nor that the buyers were not going to “qualify” for the loan. Even if it did the court is unlikely to enforce against a homeowner and make them come up with money.

Being as it may, it would still be a good move to have the seller get a release from the buyer. Be sure your contract spells out the CYA stuff that you would put in a L/O type contract. That way there is no abiguity in what is being done. Been there,done that, and paid a good attorney for an opinion on enforcing. Show yours as a back up until the other one is released.