QUESTION
I have a question regarding a real estate purchase agreement.
Asked on Jul 08th, 2023 on Real Estate - Michigan
More details to this question:
My husband and I signed a purchase agreement to buy a house. Two days before closing, we were informed there wasn't a clear title. The seller, a surviving spouse, had used her power of attorney to make a quit claim deed to show herself as owner. Long story short, it was her spouse's wishes to have his children (her step-children) and his spouse to share the proceeds equally. My husband and I decided to withdraw our offer and requested our $3000.00 good faith deposit returned. The title situation was eventually corrected and a judge made the seller executor of the house sale only and it is now worded estate of deceased spouse and all proceeds will go into an account to be distributed to survivors. We still want nothing to do with this, but the seller refuses to return our deposit. My question, did she have the authority to sign the purchase agreement since she wasn't legally authorized to do so at the time?
1 ANSWER
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Typically, acceptance of the agreement binds the parties to complete the sale. The seller warrants they have good title or can give a warranty deed (something the title co. will ensure).
But it depends on what the purchase agreement says.
You made the good faith deposit. You normally should get it back if the deal failed because the seller could not give good title.
That said, with a judge deciding how the proceeds will be divided, in theory, the seller has the authority to complete the transaction and that might (depending on the agreement) allow them to force you to sell.
You liked the house enough to put an offer in on it. If you still want it, you can close on it have good title. Given the title issues, depending on how much time has gone by and the terms, you might be able to walk away and get your money back.
Hiring a lawyer at this point is probably a good idea.
Answered on Jul 10th, 2023 at 9:38 AM