Contract Breach, I Need Help!!! - Posted by Shawn
Posted by Shawn on January 09, 1999 at 20:36:40:
On 10/25/98 I signed an ‘Agreement to Sell Real Estate’ for an SFR FSBO (rehab). The agreement stated that closing was to be on or before 12/31/98.
On 12/9/98 my financing was finalized using an equity loan on my primary residence. I contacted the title company to let them know I was ready to close as early as 12/14/98. They had not even started the paper work, but said they would put a rush on it and we should be ready to close in about 10 days.
Called title company again 10 days later. Still not ready, they said they were waiting to get back some legal documents, or something. It is now 1/9/99. Nine days beyond the time frame for closing, according to the contract; and almost one month since I was actually ready to close.
I am about to make my first payment on the equity loan, and don’t even have possession of my investment property yet!
The contract states - “6. DEFAULT BY SELLER: If the Seller fails to perform any of the covenants of this contract, the aforesaid money paid by the Buyer, at the option of the Buyer, shall be returned to the Buyer on demand; or the Buyer shall have only the right to specific performance.”
What options do I have? Can I get out of the contract w/o liability on my part? Could I use this to renegotiate a lower price? What is ‘right to specific performance’? I have appraisal and loan fees, home equity closing costs, etc. already tied into this deal.
As always, thanks in advance for the help!