OK...Yankee game postponed....so I'm back.

Dennis,

First, thanks for the thumbs up. Glad I could help.

Now, Damages:
"If anyone knows of specific damages payed by a seller who breaches a binding purchase agreement, please let me know."

Generally, there are no "set" damages that you can expect to collect (at least not that I'm aware of).

However, you "may" be able to seek:

1. Your actual damages: The difference between the contract price and the actual value of the property at the time of the breach which would be determined by an appraiser (you say this is $4,000). The $8,000 tax credit may/may not be considered an "actual" loss by the court. Could be considered too speculative, but you never know.

OR (not normally AND)

2. Specific Performance: Your attorney argues something along the lines of there being no adequate remedy at law because real estate is unique..... Thus, the Seller should be required to sell you the property.

There are other alternatives and considerations which are beyond the scope of this Q & A forum. Hope this helps a little.

All the best,

Robbie L. Vaughn, Esq. (Robbie Vaughn)
Long Island, Brooklyn and Queens Real Estate & Bankruptcy Attorney.
Broker/Owner of Bayview Estates Realty of Long Island.

Rlvaughnlaw.com
Bayviewestatesrealty.com

Disclaimer:
No Attorney-Client, or Broker-Client relationship is formed until we have a signed agreement. This is not legal advice. Please verify any and all information provided to you.

Thanks for your input everyone. The signed document is titled "offer to purchace" and has an "acceptance of offer" section signed by the sellers. This document was required by the bank to finalize approval of our loan. Our attorney says we have a "stronger legal standing" over the land contract buyers, however it could take 6 mo. to "force a sale".

We were told the purchace agreement would cost $75.00 to prepare and is considered to be part of the closing costs paid by the buyer. The $100.00 binder? was paid directly to the sellers at the time they accepted (and signed) the purchase offer acceptance. $100 was deducted from the final payment due Nov. 1.

The property is in northern new york state, not NYC.

Robbie's post was most helpful, I am unclear if the contract was "fully excuted", it does appear we completed step # 11 and we are ready and able to procede. It appears the sellers are going to have to breach either our contract, or the 3rd party land contract.

My question remains, what kind of damages should I expect if the sellers do indeed breach? We have damages including

- Fair market value of property is at least $4000.00 over purchase price, per apprasial.
- $8000 first time home buyer tax credit is going away if we don't close now
- We are losing our dream farm!

If anyone knows of specific damages payed by a seller who breaches a binding purchase agreement, please let me know. - Thanks

I have to agree with Barbara. This transaction does sound kind of odd.

Especially:
1. The $100 deposit- sounds like a binder.
2. We Payed the sellers attorney $75.00 to prepare the purchase agreement? Why?
3. Purchase agreement?? Not really sure what this is. Most Contracts say something like CONTRACT OF SALE on top.

All the best.

Hope this helps:

"If" the contract has been "fully executed", meaning both parties have signed the contract and it has been "delivered" to the buyer (also see below), It would likely be a breach of contract for the SELLER to "back out" simply to accept a higher offer. However, if the contract contains an "attorney review clause" it may be possible for the seller to cancel the existing contract and accept another offer. Generally, the attorney review clause allows the contract to be rescinded for any reason. However, attorney review is typically only a few days or so.

Time of the essence letter....hmm...this leads me to believe that you are in contract. "If" you have fulfilled all of your obligations under the contract, and you show up ready, willing and able to close on Nov. 1st.- you may be able to seek specific performance (a forced sale to you) and/or other DAMAGES from the SELLER if they do breach. Your Attorney should be able to explain this in detail.

Buying Your Home (an overview) :**

Generally, there is no "deal" until step #12 has been completed (see below). Even then, there may still be contingencies to deal with.

1. The Buyer usually contacts a Real Estate Broker to help locate a property he/she would like to purchase.

2. The Broker helps the buyer find a home.

3. The Broker usually conducts a Comparative Market Analysis to help determine the value of the home.

4. The Buyer usually makes an offer by submitting a real estate binder.

5. Seller accepts or rejects the offer.

6. Assuming the offer is accepted, the buyer then hires an engineer/home inspector. *

7. Once both parties have agreed to move forward, the seller's attorney drafts and sends a proposed contract to Buyer's attorney.

8. Contract terms are negotiated by the attorneys.

9. Buyer meets with his attorney for the "contract signing."

10. Buyer's attorney collects the down payment check, which is made out to the seller's attorney "as attorney," to be held in escrow, by the seller's attorney, until the closing.

11. The signed contract and Down payment are forwarded to the Seller's attorney.

12. Buyer receives a fully executed copy of the contract (signed by all parties).

*The inspection can be done after step 12 if the parties agree. This is usually accomplished by placing an "inspection contingency" into the contract.

**The above is merely an overview of a real estate transaction. Additional and/or different steps may be required during a particular transaction. All rights reserved.


All the best,

Robbie L. Vaughn, Esq. (Robbie Vaughn)
Long Island, Brooklyn and Queens Real Estate & Bankruptcy Attorney.
O:631-277-4907.

Disclaimer:
No Attorney-Client, or Broker-Client relationship is formed until we have a signed agreement. This is not legal advice. Please verify any and all information provided to you.

Where is this place? This does not sound like a NYC real estate transaction; I am not familiar with procedures in other parts of the country. Your attorney is the person best-placed person to advise you. If this is a NYC transaction, I would say that you should be glad you've only lost $175 on this scam. Good luck!

No one can render an opinion UNLESS sales contract is reviewed.

Is it executed?
In title?
Escrow money paid?
Option period?

Do you have a buyers agent who can review terms and conditions of contract who represented you in transaction?

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Lynn911

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Thanks Barb for your answer. We Payed the sellers attorney $75.00 to prepare the purchace agreement and our attorney has sent a "time is of the essences" letter indicating we are ready close on Nov. 1st as agreed. We have also filed the purchace agreement as a misc. document with our county clerk. Are you saying the sellers can still breach the purchace agreement with no ramifications?

Your lawyer should be the one handling this. It is illegal in NYS to buy or sell property without legal representation. Unless both parties have signed a valid contract of sale (which usually requires 10% down) I doubt you have any recourse in this matter. Good luck!