executed purchase contract
i had a contract to purchase a property executed with the seller. i opened title and did all the necessary steps. we got clear title and the day of closing, about 6 weeks after the contract was signed, the seller did not show up. he also refuses to take my phone calls. what remedies do i have to insure he honors the contract and does not sell to someone else?
I too am interested in what the seasoned pro investors have to say...
I will also wait for other replies. But this doesn't seem to be a hard one. As long as his signature is on the contract, he must follow through. But, the only thing you could due at this point is sue the owner. The owner may have very well found a better deal. But he is obligated to honor the contract that you have with him. My questions are:
1) Are there any intermediate steps that can be taken?
2) If the owner is sued would the judgement then be to honor the contract?
3) Can the owner be sued for a loss?
4) How can we avoid this in future dealings?
Ervan
edickens82@yahoo.com
No one wants to reply to this? WHy?
Sue for breech of contract. A purchase agreement is a purchase agreement. If they signed the contract and you did as well, it is binding.
i guess what i am trying to find out, if there is a way to cloud his title by recording the contract with the county and making sure it attaches to his property as a lien?
Besides that did he honor the contract? If there is an addendum that says "subject to seller returning calls of the buyer" then he's breaching the contract. As long as he delivered everything to you that he is required to by the deadlines that you have established, it should go through. (if you've kept your part of the contract of course). Granted, that's frusterating, but a court would uphold the contract. Sorry it's not all roses, but you SHOULD still be ok...but it might be a bit more work and a bit more expensive.
My other thought, is perhaps he's not calling you back for a reason. Show up on his doorstep, tactfully explain your frusteration, and ask if there is anything you can do to help. He may spill his beans right there. Communication is ofter easier than litigation. Good luck.[ Edited by hibby76 on Date 04/04/2003 ]
That was an excellent suggestion Hibby! And a word of advice to all: don't call someone's house as an unknown or anonymous caller. If I am facing foreclosure I probably owe more than taxes. One may not be avoiding you but rather the possibility that you might be a bill collecter.
Ervan
edickens82@yahoo.com
Quote:
On 2003-04-02 16:29, yatuck wrote:
i had a contract to purchase a property executed with the seller. i opened title and did all the necessary steps. we got clear title and the day of closing, about 6 weeks after the contract was signed, the seller did not show up. he also refuses to take my phone calls. what remedies do i have to insure he honors the contract and does not sell to someone else?
You basically have two choices:
1. You can sue for breach of contract and seek either money damages and/or specific performance (i.e., having the court order the seller to transfer the property to you and complete the contract).
2. Revoke you contract by sending the owner notice of revocation (and notifying him/her that they are in breach of contract) and going on to the next deal.
Before choosing "1" though you should check with an attorney to see if the contract was enforceable. Did you give some consideration for the contract? Was the contract merely illusory? (meaning that it did not bind you at all and only gave the appearance that you had legal obligations under the contract)? Was the person that you contracted with the owner of the property? Was he/she of legal age to contract (i.e., 18 or older) and legally competent to understand he/she was contracting?
If the answer to the above questions is "yes," but the equity is not great enough to waste $10,000 to $20,000 in a court battle (or you think the owner will likely file bankruptcy anyway), you might want to bring the case to small claims court and seek only damages. Although your damages will be capped at $5,000 or whatever limit your state allows for small claims case amounts, the cost is low; usually only $20-$30 to file a case.
Hope that helps,
Taxjunkie
P.S. If you chose to "1" and hire an attorney, have the attorney file a lis pendis against the property so that it clouds title and the owner cannot mortgage the property (and taking the equity out of the property) prior to the court hearing the case.[ Edited by taxjunkie on Date 04/07/2003 ]