qstaff,
Be careful there, a recission period might apply, and it might not, depends on state laws.
I know specifically in Ca, there is a law on the books about pre-foreclosures and rules one must follow.
I also know a few states, where once a contract is signed and delivered, it is binding.
The original poster needs to check with a lawyer, and then take steps to protect themselves, or move on.
And your were right in the one post, if both sellers did not sign, there is no contract.
However, if both signed, it would be time to record the agreement, or some notice placing at least a cloud on title, while things are worked out…or not.
Did not mean to step on your toes, but I did not want someone else reading this to think, “Oh no, you mean after I have a contract signed, the sellers CAN back out?!?!?!”
Because that ain’t the case everywhere, all the time.
Seller Breach of Contract - Posted by Ernie Baxley
Posted by Ernie Baxley on August 18, 2003 at 20:42:37:
I was hoping to get some advice on my sellers breaching our sales contract. My partner and I had purchased a house for $125K cash with a one week escrow. Buyer was asking $179K but took our offer over others because it was all cash. We estimated fix up cost at 10K and had done our comps and talked to a few agents who estimated that is would go for 190-200K after fix up. After the contract was signed the sellers agent advised seller not to sell because the price was too low. They actually sent us a copy of the letter stating this to their seller. The seller and the agent/broker had an argument and the seller fires the broker. After this occurs the seller attempted to notify us and the title co. that she was not going to sell us the property. We advised the seller that she had signed a contract and we intended to hold her to it. At closing seller agrees to sign the closing paperwork and does so.
Sellers husband who resides in another state says that he will also do so. Seller then advises our agent/broker that she has no intention of selling us the house and has told her husband not to sign the paperwork. She is now suppossed to be leaving the state to go join her husband.
Unfortunately this happens to be me first REI deal and I do not have a Real Estate Attorney who can handle this although I did contact several today and will meet with them tomorrow.
What do we do? What are the ramifications of her and her husband breaching the contract? Our broker and the title co. employee say that they have never seen anything like this. We were planning on making some good money on this deal and would like to pursue whatever actions we need to take. Any advice would be helpful. I know that I must talk to an attorney for real legal advice but any hints would be helpful…
If, in fact, you are in a situation where you can enforce then contract do you really want to? Getting an attorney is just the beginning, be prepared for a potential legal battle from hell. Which means cash out of your pocket right now.
I would talk to them and try to work it out. Are you willing to pay a little more to make the deal go smoothly? If you can’t work it out then maybe you should consider walking away and finding the next screaming deal.
Personally, I loathe legal battles and would walk if I couldn’t work it out with the sellers. Too much time and money on my part to make them perform.
Who signed the contract? Both sellers or only one? If only one signed, I don’t think you have a valid contract (unless she has power of attorney). If both signed, you do, and legally they are obligated to sell, but you’ll need a lawyer probably.