QUESTION
I am the buyer in a real estate contract to purchase a hotel, resturant and bar. Question about specific performance
Asked on May 22nd, 2015 on Real Estate - Colorado
More details to this question:
We were scheduled to close on this transaction and the lender/investor withdrew his commitment to lend after he found out the seller failed to renew the liquor license which was an essential part of the purchase. Without a valid liquor license, there would be a significant change in monthly revenue, therefore jeopardizing his investment. The lender withdrew and we were forced to ask for an extension and start searching for a new lender. The seller had a lease option on the property and chose to let his lease expire prior to us finding new lending or investment money. Now, he is attempting to keep our earnest money and sue for $200k. Since he breached the contract first by not renewing the liquor license, who has the stronger case? We have lost potential revenue and our earnest money is being held. Help please. Thank you.
1 ANSWER
3 Awards
You have a lot at risk here. To answer your questions will require understanding the facts and reviewing your contract.
Based on your facts it seems very unlikely that the seller has the right to retain your earnest money or sue you for damages. But, you very well may have damages that may be recovered against the seller.
I recommend that you contact an attorney for an in person consultation to review the facts and assist you in determining the strengths and weaknesses of both your defense and your claim against the seller.
I'll offer you a free 30 minute consult, call 303-688-0944, reference this communication and ask for a free consultation with Don.
Good Luck!
Answered on May 23rd, 2015 at 12:45 PM
Call Don at (303) 688-0944 or email at Reception@RobinsonandHenry.com This information is provided AS IS; and does not create Client Relationship.