What to do when buyers illegally back out of contract?

Yancy
Both Buyer and Seller
Union County, OH

My house went into contract a month ago & I had agreed to be out of my house on closing day (so buyers would not have to move twice). I had all my stuff packed on a POD and the buyers backed out of contract right b4 closing, claiming county auditors sq.ft. did not match up w/appraisal, which is normal for that particular county (they include 2 story open space in great rooms, etc. in their calculations). The buyers had been in the home 3 times and inspected it thoroughly. The appraisal & inspection came in on target too. Lawyers on both sides advised against it, said contract was ironclad,but they did it anyway. Now I've been told that I have to hire my own lawyer and sue them to get anything back for my losses (I sold off & gave away a lot of my furniture, etc. to downsize in addition to moving expenses, etc.). I'm currently unemployed so lawyer fees are a tough issue right now. What was the purpose of signing a contract & hiring a realtor if I was not protected from this? Any advice?

Answers (4)
Jed Lane; Fog C...
Broker
San Francisco, CA

My advice is to put the property back on the market and continue on with your plans. Find an attorney that will take the case on contingency and sue. First off don't release the good faith money in escrow and then file suit for breach of contract.

I do expert testimony and if the case is as you say you should sue. A contract is a contract and a flimsy excuse can sometimes work but if you've been damaged then you have a right to be compensated for the damage they caused.

Most important though is to continue on with your plans if possible.

Tue Jul 7 2009, 10:40
AL BRENT
Broker
Rocky River, OH

Hello Yancy
My sympathies about your situation. To answer your last question. You hired a Realtor to market your home. That's what he/she did. You signed the contract because you agreed to its terms.

A more important question now is "what to do now". We Realtors cannot give legal advice. But what I would do is find an attorney to represent your interests. Find one who will work on a contingent basis - meaning he does not get paid unless the judgement is in your favor.

Also I specialize in these kinds of situations. If you're interested you can call me and we can discuss. I'm in Cuyahoga and my daughter lives in Union County so I know the area. Good luck with whatever you do.

Tue Jul 7 2009, 05:12
Pat & Steve Pri...
Agent
44145

If I were in your position, I would not enter into any litigation, even if I had the money to hire an attorney, as litigation takes forever & it would drain my energy, when I have more important things to do. I would put my house back on the market ASAP. I would work with my Seller's Agent to decide on the best listing price for selling my home as quickly as possible. I would bring back the remaining furniture I had in a POD, so my home can be staged. As soon as my house is listed, I would concentrate on finding a new job.

The above paragraph may not be what you want to hear. But, there is no easy solution. I am a Realtor & an Attorney; & the above paragraph represents what I would do if I were in your situation.

Mon Jul 6 2009, 08:58
Beth Campbell
Broker
Louisville, OH
FIRST ANSWER

Unfortunately, this can and does happen occasionally, whether you have a Realtor or not! I'm sure their Realtor was flabbergasted, and also may be able to sue them for his/her commission. IF there was earnest money, you may be entitled to that, but of course it may have to go to a court of law to hash out. Having a Realtor does not protect you from the stupidity or dishonesty of others. This is specifically why Realtors push for a decent-sized earnest money deposit to hopefully keep the buying public from walking away once a contract is conceived. Good luck to you. Please feel free to visit my website!

Mon Jul 6 2009, 08:42

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