Legal Question in Real Estate Law in Colorado

Contract of Real Estate Sale

Im a property developer and have pre-sold a house prior to it being built. The contract settlement will occur once the house is built and all other conditions are met. I am having difficulties obtaining finance to undertake the development and would like to get out of the contract. is this possible?


Asked on 1/08/08, 10:14 pm

2 Answers from Attorneys
Cathy Cowin Law Offices of Cathy Cowin

Re: Contract of Real Estate Sale

First you have to look to the contract language to determine your options. If the contract does not provide an easy out and you are unable to move forward, you will need to consider damage analysis and control. If there is no way to avoid damage, there is always the possibility that you can negotiate toward a walk away, particularly in light of the real estate market downturn. Another direction is to further explore creative financing and compare costs to potential damages. Our office does real estate and development law and we have contacts knowledgeable in real estate finance also. Please call if you require further assistance.

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Answered on 1/15/08, 12:19 pm
Richard Gee

Re: Contract of Real Estate Sale

I assume you have a written contract with the other party. Is there a financing contingency? If so, then you may have an out, depending on the contract language.

If not, then, unless, you fit under certain rules concerning contract interpretation, your failure to go through with the project may subject you to damages.

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Answered on 1/09/08, 11:30 am


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