Legal Question in Real Estate Law in California

Re: Can I be sued for breach of contract?

Specific provisions should exist in your agreement if contingencies were part of the original agreement and, remedies also should have been part of the agreement, ie., since contingencies known, no money to be paid and/or monies in a sum agreed, will be paid. Call to discuss. Need really to see the agreement.

Re: Can I be sued for breach of contract?

Your question is unclear. I can probably get the deposit back and yes you might get sued. You may contact me for a free consultation. 310-266-4115

Re: Can I be sued for breach of contract?

Well, to start, you don't make it clear whether there is one house or two in question here. Are you buying and immediately re-selling the same house, or are you moving from house A to house B? The latter is more common, and I'll assume that's your plan.

It's very common for families who are moving to face the problem of making a smooth transition from the old home to the new. Unless the timing is perfect, you may have furniture in storage and no place to live, or be paying on two mortgages at the same time, or not have funds needed for the down payment.

The usual way to anticipate and handle these situations includes some mix of contingent offers and bridge financing. There are dozens of other creative methods including lease-purchase deals. However, even with the best of planning, and carefully-written contingency clauses in the new-house purchase agreement, back-to-back house deals sometimes fall apart.

The crucial question here is whether you have a contingency respecting sale of your existing home, or whether you either never had one or already waived it. If the former, you probably can't be sued successfully, and at some point you would be entitled to return of your deposit.

If you are unprotected by a contingency, you are open to being sued for the seller's damages, and in danger of forfeiting your deposit.

Quick and positive remedial action might be possible and avoid losses to the parties and the consequent lawsuits. The first place to turn would be to the real-estate professionals who represent the parties. If they're good, they should be able to assist with negotiations, extensions of time, locating "bridge" lenders, substituting a lease-purchase for outright purchase, or otherwise. If you don't have an agent or agents, or they are incompetent, or the problems are insurmountable, see a real-estate attorney.

I would also suggest asking a licensed loan broker for ideas. You should probably avoid relying upon anyone who is directly or indirectly responsible for the deals coming unglued in the first place.

Re: Can I be sued for breach of contract?

EVERYTHING is based on what the contract says. If your buyer's loan contingency has not expired (some loan contingencies are written to keep the loan contingency in place until the loan funds).

If your contract with the seller is contingent upon successful close of escrow of your house, then you may be able to recover your deposit. Bottom line is, you have two different contracts between two different sets of people. The terms of each contract controls the rights and obligations of each of the parties to those specific contracts.