Seller breached contract on my option HELP (long) - Posted by LeAnn

Posted by LeAnn on July 14, 2003 at 10:02:33:

Thank you Mr. Hyre–

I thank you for your insight. I had considered contacting the real estate commission and think I will do just that. I will also contact a RE atty in my area to begin suit. With regards to the performance mtg recorded vs. her property…Can I foreclose since she breached the option contract and the PM was securing my interest in the property and her performance in the agreement?

Thank you again for taking the time to answer my questions.


Seller breached contract on my option HELP (long) - Posted by LeAnn

Posted by LeAnn on July 10, 2003 at 17:26:12:


Woman calls me on a ad I placed to sell a home on l/o–says that she owns current home, but cant afford payments and needs something cheaper. Says that credit is trashed and will need time to qualify. I pitched her to buy her current home with her holding a 10% note and then working with her on a l/o from another home. Went to sign it up and she backed out stating she was in foreclosure but got $$ from boyfriend to bail out. Fine.

4 months later calls me again, says that she can’t stay afloat and needs to sell home, do I want it…Says that she wants at least $142k but my previous check found FMV of $170k–with only cosmetics needed. Said she needed out like yesterday. I signed her up on a 30 day option and recorded a signed performance mtg vs. the property. Used Joe Kaiser’s CYA doc, etc.

I wanted a 60 day option, but she was in too much of a hurry to wait. She is a realtor and said she could just sell it herself in that time. Fine. 30 days then. I proceeded to try to sell retail by advertising for $168k and paying $5k closing costs. Put a couple ads in local paper and got a lot of investors and a several retail buyers interested. I had to leave town for week and a half to close on a home that I’m moving to in Houston. Seller offered to show property while I was away, but I explained I had someone that would do that for me if needed, but would probably wait until I returned to show it myself.

While in Houston, I created interest with about 8 callers that drove by the property and wanted in. I set appointments with them for my return. Called the seller last Sunday to tell her to get place ready to be shown, and she tells me that she decided not to move. Told her contract is contract and can’t change her mind. She proceeds to claim on prozak and not of sound mind. Reminded her that she signed acknowledgement stating she of sound mind, not on drugs, etc., etc. Said she gonna call atty-- Told her to go ahead and have him call me.

I’ve called her every day since to no avail, my 30 days were up last night-- Yesterday, one of my potential buyers stated that they were ready to buy house if inside was as I described (which it is), but still wanted in. I called seller 3 times and on third try her boyfriend answered and said that she had to leave town unexpectedly and he was not to let anyone in the home, and had no wy to contact her (yeah right). Ten minutes later I was at the home with my notice of intent to exercise my option, knocked on the door and no answer (surprise). I left it in the door because I know someone (seller) was in there.

Now what? I have a lien vs. her home that has been recorded at the county, but it secures the option agreement. What about the potential buyers that I had. What should I do?
Sorry this is so long, but I am miffed to say the least. She intentionally wasted the last 48 hours of my contract to let it expire. What recourse do I have.


Seller breached contract on my option HELP (long) - Posted by JHyre in Ohio

Posted by JHyre in Ohio on July 12, 2003 at 12:06:42:

Unfortunately, you will have to sue. I’d sue for specific performance (unlikely to get it) and damages equal to your lost profit. Before doing that, I’d talk to her broker and the state RE commission about her unethical conduct. Perhaps that will create enough pressure to get something out of her.

John Hyre