QUESTION
What are my options if home seller breaches contract?
Asked on Jan 13th, 2014 on Breach of Contract - Nevada
More details to this question:
This might belong in the real estate section but I'm really just curious how someone can simply dismiss a written contract. I'm set up to close on a home in Feb, or at least I was. The seller just realized that because he has not lived in the house for 2 years, he has to pay capital gains tax. So after he found that out, he tried to push the close date to May. I said no. Now he wants to cancel the whole deal. Nothing in our contract allows him to cancel the deal, but my realtor is telling me this is transaction is not going to happen. So I guess my first question is, what's the point of having the contract if it's useless to begin with? My second question is, what options do I have when the seller is clearly breaking the contract? I know I can hire an attorney, but what will that do for me, how long will that take, and how much would that cost?
1 ANSWER
R. Christopher Reade
Based upon the facts which you have listed, you would have a strong case to file suit and to seek specific performance of the terms of the Agreement. You would also be entitled to put a Lis Pendens on the Subject Property so that all prospective purchasers are aware that there is a dispute as to title. Specific performance is available only when: (1) the terms of the contract are definite and certain; (2) the remedy at law is inadequate; (3) Purchaser has tendered performance (or can show that Purchaser stands, ready willing and able to tender performance); and (4) the court is willing to order specific performance].” Serpa v. Darling, 107 Nev. 299, 305, 810 P.2d 778, 782 (1991).
Answered on Jan 13th, 2014 at 11:19 PM