I suggest that if you need legal advice, discuss with an attorney.
If you need real estate advice, your Realtor and/or their broker would be a good place to start.
If the two Realtors involved communicate and there is a good reason to cancel the transaction, then try figure out what is fair. "liquidated damages" is the term that refers to what you get if they back out. If the damages are more significant, start adding them up now.
Also, unless the seller struck language that's in the standard listing agreement used here, he is still liable to pay the entire sales commission. The listing agent is responsible for delivering a willing and able buyer - which he/she apparently did. If the seller changes his mind and doesn't want to sell, then he should still be liable for the full commission. Of course, this is something the listing broker must pursue -- not you. This wouldn't benefit you directly, but this gives the seller a significant financial incentive to close.
Since the seller would be in default of the contract, this is definitely something to take to a real estate attorney. You need a professional attorney to review the case and give you specific advice on how to go after this guy. Trulia's a good place for general tips and advice, but not the place to help resolve this issue.
Please note, beforehand, that I am not qualified (as a lawyer) to give you true legal adivce. Having said that, as a Realtor in our three jurisdictions, this is how it might go on an already ratified contract:
-- unless the sellers can 'remove' themselves from the contract through a 'contingency', they will be ''in default' of the contract
-- since you have a copy of that contract, look at all the parts that describe "default" conditions and their remedies
In general you have a strong case to sue for all the costs you will bear if you are unable to close the purchase, (including legal costs). Your settlement agency cannot do this for you, they're a neutral party to both buyer and seller in this case. You will have to engage another lawyer.
In practical fact, a strongly worded letter from your lawyer to the sellers stating your costs and making a claim for damages, might bring the sellers to compensate you without a drawn-out affair. If they don't want to play-ball....you're going to court!
Again, a real estate practitioner speaking here, not a lawyer; (you'll need one), but I hope this helps. I'd also get your buyer-agent to find some early advise from his or her firm's legal eagles. Good luck, (maybe the sellers won't stay~!)
I understand your frustration and concern, however, until there's actual damage you have no standing. In other words, in order for you to have a legitimate claim, the seller must have done something to breach the contract. Should you try to sue in anticipation of contract breach or in anticipation of something the seller might do, the court will dismiss your claim. You should probably contact an attorney to answer your questions since they do involve legal issues. At the least, talk to your agent or to your agent's manager. They should be able to give you advise on how their brokarage handles these types of situations. I hope this helps. Good luck.
I am Jon Tucker with RE/MAX 100. Consult a real estate attorney.
Assuming the contract is sound, I would negotiate damages with them. They should be willing to compensate you given their default. Otherwise, you may be able to sue them for "specific performance" and a judge can order the contract enforced and/or transfer title.
Thanks, Jon Tucker, 443.538.4316, TuckerRealty@comcast.net, http://www.JonTuckerHomes.com.
Your executed contract governs non performance of either buyer or seller. Seller can back out of contract IF there was an option period.
Confer with attorney review executed contract OR you buyers agent detail all particulars involved. Title company would require signature release of all parties for your $100K. You might be able to recover all your expenses.
NO MATTER if seller does back out obtain all in writing regards expenses. You would need provide furnished documents of inspection, appraisal and etc. recover