QUESTION
Can I receive compensation for lost money and time due to a seller backing out of a signed contract for a home?
Asked on Jan 26th, 2015 on Breach of Contract - Florida
More details to this question:
I submitted an offer on a home that was listed for sale for over a year, and after some negotiations, agreed on a price and had a signed contract. I did everything necessary to fulfill my end of the deal, purchased the home inspection immediately, termite inspection, paid my loan officer for the appraisal, sent escrow, etc. A few weeks later I am informed that the house has to go to probate because the owner passed away, and the co-owner is trying to sell the house. Now they have decided they do not want to sell, and I am out time and money, about $1000 worth, is it worth it to pursue? If I did not hold up my end of the deal, I'd loose the escrow money, it seems that there should be some type of recourse if the seller breaches the contract since they were trying to sell a house that was not theirs to sell and I am out time and money because of it. We live in different states.
1 ANSWER
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Although I don't see it in your description, I'm assuming the home was in Florida - and the contract governed by FL law. I make that assumption because real estate laws can vary greatly state to state. That said, start with your contract - there may be a section that already spells out what happens when buyer or seller breach the contract. I would expect that there would be language dictating the ability to receive damages against the seller for a breach. If the contract is silent, a lot depends on the details, but generally, yes, you should be able to seek damages against the buyer caused as a result of the breach of contract. Sounds like you may benefit from having your contract reviewed by a lawyer. From there, you can decide the best course of action based on your options available.
Answered on Jan 26th, 2015 at 12:18 PM