More details to this question:
I signed a contract with an investor to purchase my home for an agreed upon price. When we went to the closing, some of the information on this "new" contract was different. First, the contract was between an unknown person and myself, not the person I signed the original contract with. And second, the purchase price on the 1099 was higher than the asking price. I was told that the new price was additional fees the investor had incurred and I was being taxed on. I don't want to sell anymore, seems like something shady is going on. Can I back out of the contract without penalty or have to sell?
1 ANSWER
Business Attorney serving Frisco, TX
at
The Law Office of Robert Newton, P.C.
Update Your Profile
Whether you can terminate the contract depends on quite a few things. An attorney would need to review the contract to determine your rights and obligations, but here are a few pointers. First, what does the assignment clause state? Second, what does the contract say about the allocation of costs and expenses. Finally, what does the settlement statement (HUD-1) state?
You should not receive a 1099 from an unknown third party for a purchase price that is higher than what you are receiving. With that being said, a 1099 being issued to you in this situation is a bit odd.
If you need further assistance, then you should contact a real estate attorney.
Answered on Mar 24th, 2015 at 8:03 AM