QUESTION

Can I get sued for breaking home purchase contract for changing mind? Seller met all contingencies - appraisal, inspection, etc

Asked on Aug 28th, 2017 on Residential Real Estate - Michigan
More details to this question:
We just decided the house is too small after all, but we're only a couple weeks from closing, and all contingencies have been met. The seller is upset and said he'll sue for compensation beyond earnest money ($1,000). Does he have grounds? For how much? Do we have any recourse to get out of this purchase agreement with just paying the earnest money and appraisal?
Report Abuse

1 ANSWER

Real Estate Law Attorney serving Holland, MI at Cunningham Dalman
Update Your Profile
Yes, assuming the contract is otherwise enforceable.  It would not be enforceable, for example, if the seller did not provide a seller's disclosure statement or if the house was built before 1978, a lead-based paint disclosure.  There are other possible grounds in some particular situations (seller is a licensed real estate agent, developer of a condominium, lied about the condition of the house, or does not have clear title to the property). If the contract is enforceable and the buyer wants out for a reason not covered by the agreement, the seller can (1) take the deposit and terminate the agreement, or request a court (2) to compel the buyer to perform the agreement or (3) to award the seller his or her actual damages.   The seller's damages are, loosely speaking, the difference between the sale price in your contract and the value of the property on the day you breach.  If the property was listed through a realtor, the price you agreed to pay is probably about the same as the value today.  The seller could also recover some other damages, like the cost of carrying the property (taxes, mortgage interest, insurance) until a new buyer is found and that deal closes.    
Answered on Sep 05th, 2017 at 8:13 AM

Report Abuse

Ask a Lawyer

Consumers can use this platform to pose legal questions to real lawyers and receive free insights.

Participating legal professionals get the opportunity to speak directly with people who may need their services, as well as enhance their standing in the Lawyers.com community.

0 out of 150 characters