Legal Question in Real Estate Law in California
Seller Refuses to Close
I entered escrow to buy my 1st home in Februrary. The seller had separately listed 2 adjacent properties & I'm in escrow to purchase 1 of them. The contract says that I agree to extend escrow closing past our 60 day escrow period if necessary to allow seller to accept an offer for the adjacent property & that if there is no accepted offer after 90 days, we can agree on extension; if we can't agree I get all money back. A few months into escrow, the seller took the adjacent property off the market. After 8 months the seller is ignoring me, refusing to close. I still want the property- What can I do?
4 Answers from Attorneys
Re: Seller Refuses to Close
I would agree with the two prior answers IF a careful reading of your contract shows that the seller has an obligation to sell. Under one possible interpretation of the facts you've given us, however, the seller's obligation to sell to you is dependent upon a condition that didn't occur and the occurrence of which he didn't improperly prevent.
It's hard to near impossible for LawGuru attorneys working from the inquiring party's interpretation of contract provisions to give an airtight answer on the enforceability of a contract or a provision therein. This is not to criticize you statement of the facts - it's clearer than many we get - but it is capable of interpretation in more than one way.
A lawyer would need to parse the contract language while referring to a calendar of events in order to form a reasonably-solid view as to whether a suit for specific performance would succeed or not. Meanwhile, I'm wondering if the seller's silence suggests that his position is weak. If he felt confident that he had no obligation to sell to you, I'd think he would be explaining why, instead of ignoring you.
Finally, what does the escrow holder have to say about this? Often they won't take a position, but they do have lawyers and you might garner some useful insights by prodding them to give an opinion on whether either party is failing to live up to the agreements placed in escrow.
Re: Seller Refuses to Close
You can bring a lawsuit for specific performance to require the seller to close. You could probably also get attorney's fees if the purchase agreement provides. First check to see if you have a mandatory arbitration clause.
Re: Seller Refuses to Close
Since the seller prevented the occurence of the condition, he is still obligated to sell. You should hire an attorney to take it from here. If a letter does not resolve the issue, you will have to pursue a specific performance action. The contract may require arbitration, mediation or both, and may or may not provide for attorneys fees. The lawyer you retain will have to advise you.
Re: Seller Refuses to Close
You can sue for specific performance, which is a judicial remedy essentially forcing the seller to complete the transaction. Perhaps the seller just needs to be reminded of your rights with a nicely worded letter. We have handled several issues like this in the past. Let us know if you would like help.