QUESTION
I have cancelled the sales contract on a short sale property ( I am the seller). The buyer is now threatening to sue. Can he?
Asked on Jan 16th, 2012 on Real Estate - Georgia
More details to this question:
I received an unreasonably low offer to which my realtor insited that I sign (38K on a 111K loan) It has been submitted to the bank however nothing has been approved. For personal reasons i was forced to cancel the contract and pull the house off of the market. I received an email today from the potential buyer stating if I change my mind and sell within the next 12 months he and his realtor will sue and he will be contacting my HOA to ensure that they dont approve me renting the property. Can they do this with an unapproved short sale offer/ contract. The addendum says contingent upon lenders approval.
1 ANSWER
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The answer to you question will no doubt be found within the text of your agreement and the response by your bank. If the bank does not approve the transaction, it would seem to me the entire controversy would be moot. If the bank does approve the transaction, you may indeed have a problem unless the contract gives you some kind of "out" - which is doubtful. You should see a good real estate lawyer in your area to learn whether you will likely be held liable if the bank approves the deal. A probably modest conference fee would be well worth it to relieve the anxiety that you obviously have.
Answered on Jan 23rd, 2012 at 8:08 PM