Home Buying in North Hills>Question Details

Nancy, Home Buyer in California

My loan is about 2 days from closing and I have changed my mind on the property. My agent tells me the seller

Asked by Nancy, California Mon Apr 13, 2009

can sue me. The property is not occuppied by the sellers, they both are going through a divorce and both live in different states. They have not paid for any repairs yet. What can the sue me for if anything. I know my earnest money is properly lost, but I would rather lose that then make a big mistake for 30 years. Any help is greatly appreciated, I am really stressed about this. Thanks,
Nancy

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3
Hi Nancy,

You really should consult with a real estate lawyer. Please do so right away. Bring your contract and all addendums, and put your question to him. If you don't close in 2 days, their lawyer will probably send you something called a "time is of the essence" letter - your lawyer will explain what this means to you - in perspective to everything else.

One thing you mentioned is most curious. The bit about "they have not paid for any repairs yet". It implies that they either need to do things to get the CO (certificate of occupancy) - and/or - they agreed to do other repairs in some kind of adendum after your inspection was complete.

I don't know your state law. If they just don't do what they committed to, it might be that the escrow company will merely hold their money until it's done or it might be that they are actually in breach of contract at time of final walk-through or day of closing. You need proper legal advice.

Good luck to you! Sorry for the situation.

Jeff
1 vote Thank Flag Link Tue Apr 14, 2009
Hi Nancy,

Did both you & the sellers initial the liquidated damages clause in the contract? If so, the likely maximum the seller can sue you for would be 3-1/2% of the purchase price - it would state the actual percentage on your contract. The amount the seller can sue you for for breaching the agreement would be capped at that amount.

Hopefully this helps - please email me at john.barry@coldwellbanker.com if you have any other questions.

Good luck!

John Barry
Coldwell Banker Residential Brokerage
15490 Ventura Blvd.
Sherman Oaks, CA 91403
Cell: 323-810-7976
Email: john.barry@coldwellbanker.com
1 vote Thank Flag Link Mon Apr 13, 2009
Did you sign loan docs already?
Web Reference: http://homesinsale.com
0 votes Thank Flag Link Mon Jul 20, 2009
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