Legal Question in Real Estate Law in California
Backing out of sale
My husband and I are purchasing a property and escrow is supposed to close in less than 2 weeks. The property owners now say that there is a pre-payment penalty on their loan that they cannot afford to pay so they are backing out of the agreement to sell. They have also just discovered that the property has appraised for much more than their asking price. The purchase agreement says that the contract can only be disolved if all parties agree and sign papers that state this. We are not signing. What is our legal standing?
3 Answers from Attorneys
Re: Backing out of sale
You have many options, you can sue for Specific Performance, and/or consquential damages that you have suffered as a result of the sellers action. If you are located in Southern California you may call me for a free telephone consultation. By the way I love handling these types of cases. We may be able to avoid litigation with a well written letter!!
Re: Backing out of sale
More likely than not, the sellers are making a large profit on the sale of the property to you, and would be amply able to handle the prepayment penalty out of escrow. Also more likely than not, the real reason for not wanting to conclude the deal is a higher offer, or the prospect of a higher offer, due to hot market conditions.
You are in a strong position to oblige the reluctant sellers to go through with the deal, by standing your ground and demanding specific performance. Don't sign anything before consulting an attorney with real estate experience.
Re: Backing out of sale
So long as the written contract does not have any provisions allowing for this type of contingency you are in a very good position to force the sale.You should retain an attorney to review all the forms and to write a letter demanding that the seller perform. I can help you if you are in the So. California area, please contact me by e-mail at [email protected]
Related Questions & Answers
Looking for something else?
10,200 active attorneys ready to answer your legal questions today.
Featured Attorneys
Earn additional revenue and grow your business.
